Service Contract Template

Code

This field is by default associated with an automatically functioning sequence number counter. Consequently, the user should not normally concern him/herself with its contents.

Currency

This field is used to define the currency to be applied to all the financial fields for the service contract template. This same currency is also used to determine the charges for services for product coverage.

Description

This field must contain a short description used to determine in a non-equivocal fashion the nature and object of the contract that will be created when using this template.

Contract statistics groups

The statistics groups are notably used in the statistical processes or in the selection criteria in numerous objects.  

Category

This field is used to declare the service contract template category type. If the template is of the Maintenance category, then the service contract created from this template will inherit the specified category. This field can take one of three values in local menu 2976 :

• Warranty
• Maintenance
• Points

All skills

This field is used to determine the access to the skills coverage management function.

If this field is ticked, the coverage management function is inaccessible because all the skills described in the application are considered in accordance with the contract. It is therefore of no use to enter them one by one.

If this field is not ticked, only the skills entered in the Skills covered menu (Menu Function - Skills covered) are covered by the contract created on the basis of this template.

NB: In this function, the level of the skills group covered is entered. This means that when a skills group is entered, all the sister groups are covered by the contract.

If this field is not ticked and no skills group is entered, the contract will be almost unusable. No customer problem will be able to be taken into account by this contract.

All products

This field is used to declare whether the contract template covers all the products at the customer. If this field is ticked, then the Priority to installed base field becomes inaccessible. If this field is ticked, the product coverage function is inaccessible. This signifies that the contract created from this template applies to all of the products ordered by the customer.

If this field is not ticked, two options are possible :

• Do not enter any product reference in the Functions – base coverage menu and wait for the creation of the contract before completing the entry of the serial numbers to be covered.
• Enter one or more product references in order to automatically cover the serial numbers for this product reference with the customer.

NB: For a service contract with points template, the three flags All skills, All products, Priority to installed base, are ticked but not accessible.

Priority to the base

This option concerns the warrantee and maintenance contracts for which the coverage is by Installed base type (and not all the installed base) has been defined.

It is used to completely automate the definition of the combined coverages (Installed base + Skill) for all the coverages of the type Installed base. This field is used to combine the financial coverage of a service contract template with the equipment base and skills coverage. Within the framework of the combined financial coverage, any modification to the coverage in one will be passed to the other.

The service contract category determines the use of three flags (All skills, All the installed base, Priority to installed base). If this field is ticked, priority is given to the customer installed base during the definition of the rules for the combined financial coverages.

Technical notes

This field is used to enter notes with a limit of 235 characters.

Renewal

Duration

This field represents the contract duration.

For the contracts with tacit renewal, this is the frequency on which the contract will be automatically renewed.

For the contracts that have no tacit renewal agreement, it is the frequency on which the contract should be renegotiated by the two parties.

Agreed renewal

This field specifics whether the contract will be subject to an automatic renewal at the end of its term. Essentially this signifies that there will be no gap in the invoicing chain that will continue to be executed at the desired frequency.

The following three fields only concern contracts with points :

Points credit

This field is used to define a default point credit value at the level of the contract with points template.

Necessary tokens

This field is used to determine the number of tokens necessary to obtain a free contract of this type.

Points tolerance (%)

This field is used to define the threshold that is used to close or not the contract.

The following fields only concern the maintenance contracts. These fields are not available to warranty contracts or contracts with points.

Re-evaluation

Frequency of re-evaluation

This field is used to enter the frequency with which the contract must be re-evaluated.

Re-evaluation method

There are two re-evaluation methods :

• Pre-re-evaluation or Immediate re-evaluation:This method has the advantage of being more intuitive and therefore more natural. However, it is impossible to know in advance the amount of the next invoice.
• Post-re-evaluation or Differed re-evaluation: This method has the advantage of being a means of determining the amount of the next due item. On the other hand, the annual fee basis is always displaced by a period with respect to the actual value of the index.

Examples

Contract with a duration of three years, with annual invoice for the term to be paid. The contract is to be re-evaluated once a year by pre-re-evaluation :

1st March 2004	1st March 2005	1st March 2006	1st March 2007
Annual basis : 1000	Annual basis : 1100	Annual basis : 1200	Annual basis : 1300
Next invoice amount : 1000	Next invoice amount : ???	Next invoice amount : ???	Next invoice amount : ???
Index 1000	Index 1100	Index 1200	Index 1300
Creation of the contract
Invoice amount : 1000	Invoice amount : 1100	Invoice amount : 1200

Contract with a duration of three years, with annual invoice for the term to be paid. The contract is to be re-evaluated once a year by post-re-evaluation :

1st March 2004	1st March 2005	1st March 2006	1st March 2007
Annual basis : 1000	Annual basis : 1000	Annual basis : 1100	Annual basis : 1200
Next invoice amount : 1000	Next invoice amount : 1000	Next invoice amount : 1100	Next invoice amount : 1200
Index 1000	Index 1100	Index 1200	Index 1300
Creation of the contract
Invoice amount : 1000	Invoice amount : 1000	Invoice amount : 1100

Contract with a duration of three years, with annual invoice for the paid term. The contract is to be re-evaluated once a year by pre-re-evaluation :

1st March 2004	1st March 2005	1st March 2006	1st March 2007
Annual basis : 1000	Annual basis : 1000	Annual basis : 1100	Annual basis : 1200
Next invoice amount : 1000	Next invoice amount : 1000	Next invoice amount : ???	Next invoice amount : ???
Index 1000	Index 1100	Index 1200	Index 1300
Creation of the contract
	Invoice amount : 1000	Invoice amount : 1100	Invoice amount : 1200

Contract with a duration of three years, with annual invoice for the paid term. The contract is to be re-evaluated once a year by post-re-evaluation :

1st March 2004	1st March 2005	1st March 2006	1st March 2007
Annual basis : 1000	Annual basis : 1000	Annual basis : 1000	Annual basis : 1100
Next invoice amount : 1000	Next invoice amount : 1000	Next invoice amount : 1000	Next invoice amount : 1100
Index 1000	Index 1100	Index 1200	Index 1300
Creation of the contract
	Invoice amount : 1000	Invoice amount : 1000	Invoice amount : 1100

Re-evaluation support

There are two types of re-evaluation support :

• Evolution of an index:This value is used to proceed by comparisons of the indexes on given dates. It is therefore possible to choose an index that will serve as the database for the periodic fluctuations to be applied to the annual fee basis of a contract.
• Mathematical support :This value is used to proceed by means of calculations or mathematical formulas. This type of support is used to manage all the re-evaluation methods because each formula gives an entry point where the application field is potentially unlimited.

Index

This field is only accessible for a re-evaluation support of the type Evolution of the index. It is used to declare the index used during the comparison of the values on a date, from amongst those in miscellaneous table 410 : Indexation basis. The evolution of the values of the different indexes can be recorded in the Index evolution function.

Formula

This field is only accessible for a re-evaluation support of the type Mathematical support. This field is used to declare the mathematical formula to be used, from amongst those in miscellaneous table 427 : Re-evaluation formulas. The execution of these calculation formulas is carried out by means of the entry point RVACON_ followed by the formula code. For example, the entry point RVACON_ A1 launches the calculation of the simple formula A1.

Notice of termination

As a function of the activity sectors, this field can have the following meanings :

• The number of days preceding the end of the contract before which a customer termination request can be accepted.
• The number of days during which the contract continues to be applied after receipt of a customer termination.

In all cases, the termination is a manual operation that must be carried out directly in a contract record.

Invoicing frequency

This field indicates the frequency on which the customer will receive the invoices related to the receipt of services covered by their contract.

Invoicing method

There are two methods of invoicing :

• Pre-invoicing or Term to be paid : The contract invoicing takes place before the end of the contract. In fact, the pre-invoicing can be used to invoice the contracts before the customer has any benefit.

Example of a contract with a duration of three years, invoiceable once a year, with the invoicing method being pre-invoicing or in terms of being payable :

1st March 2004	1st March 2005	1st March 2006	1st March 2007
Contract creation and invoicing	Invoicing	Invoicing	Invoicing
Due date no.1	Due date no.2	Due date no.3

• Post-invoicing or Term paid : The contract invoicing takes place at the end of the contact term. In fact, the post-invoicing is used to invoice the contracts after the customer has benefited from them.

Example of a contract with a duration of three years, invoiceable once a year, with the invoicing method post-invoicing or in terms of being payable :

1st March 2004	1st March 2005	1st March 2006	1st March 2007
Contract creation and invoicing	Invoicing	Invoicing	Invoicing
	Due date no.1	Due date no.2	Due date no.3

Increase/decrease coefficient

Certain operations increase or decrease the open item amount when they are applied over the long term. This field is used to define the size of this increase or decrease should it be required.

Notice of invoicing

This field is used to define the notice from which a contract open item to be invoice will appear in the invoicing tools. From this moment, the invoice will be generated and sent to the customer.

The notice represents the number of days that precede the term for an invoicing open item.

Payment conditions

This field is used to enter the assigned payment conditions for the payment of the contract open items.

The list of the different dispute codes available must be described in the miscellaneous table no.315 : Accepted disputes.