Service Contract Template

• Sequence no. (field CONNUM)

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.

By default, the contract template code will be composed of a sequence number of 15 characters generated in an automatic fashion.

• Currency (field CUR)

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 (field TPLNAM)

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.

• field CONTYP

Use these fields to enter the statistics group codes for the service contracts. Codes can be selected and initialized from the service contract template.

You can define up to 5 statistical groups. The number of groups and their names can be set up when installing the application. These groups are used in statistical processes and as selection criteria in many programs.

• Category (field CONCAT)

This field is essential to determine the functional category of the service contract:

• Warranty contract
• Maintenance contract
• Contract with points

This triggers various processes: the points management rule, the contract revaluation, the invoicing, etc.

• All skills (field EVRPBL)

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" function (Menu "Function - Skills covered") are covered by the contract created on the basis of this template.

Warning: In this function, the level of the skills group covered is entered. This signifies that when a skills group is entered, all the sister groups are taken into account 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 installed base products (field EVRMAC)

This field is used to determine the access to the product coverage management.

This field can be accessed only for "Maintenance" contracts.

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. In this way a sort of super contract is obtained.

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

1/Do not enter any product reference in the function "Covered products" (in menu "Functions - Covered products")– and wait for the creation of the contract before completing the entry of the serial numbers to be covered.

2/ Enter one or more product references in order to automatically cover the serial numbers for this product reference with the customer.

• Priority to installed base (field CRSCOVSAM)

This check box is only used on warranty and maintenance contracts with a coverage According to base (not All the base).

It is used to automate the definition of combined coverages (Installed base + Skill) for all coverages set According to base.

If this check box is selected, the creation, modification or deletion of this type of coverage will immediately apply to the associated cross-referenced coverages.

• field MRK

This field is used to edit all the information that is used to better understand the service contract

template within the framework of the after-sales strategy for the organization.

• Renewal frequency (field REWFRY)

This field indicates the contract duration.

• For the contracts with tacit renewal, this is the automatic renewal frequency of the contract.
• For contracts with no tacit renewal agreement, it is the frequency according to which the contract should be renegotiated by the two parties.

• Unit (field REWFRYBAS)

• Automatic renewal (field CONREW)

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.

If this is not the case, the contract will be the object of a renegotiation and a manual renewal in the function provided for this

• Points credit (field PITCDT)

This field concerns only contracts with points. You use it to enter the total number of points awarded to the customer for this contract.

• Tokens necessary (field PITRQD)

This field is used to indicate the minimum number of tokens that allows a customer to be offered

this service contract.

This information is analyzed by the system only if no equivalent information has been entered

for the customer in question.

Remember, the tokens are the bonus that each customer can be credited on the occasion of their

successive orders.

• Points tolerance (%) (field PITTOL)

This field only applies to contracts with points. In this process, contracts can be fully "consumed" based on a ranking system with points and a tolerance threshold. As the rules for consuming these points can be quite complex, it is usually unlikely to fully consume all the points awarded for a given contract.

For example, a contract has a 100 points and a consumption rule for 30 points by service request with a tolerance threshold of 10%. The fourth service request from this customer leads to issuing a quote for subscribing to a new service contract. However, in the meantime, the customer still has a contract with 10 points. If this contract had been assigned a 20% tolerance, this fourth request would have followed the standard process and the contract would have been closed automatically once the service request had been processed.

• Revaluation frequency (field RVAFRY)

This field is used to enter the frequency on which the annual charge basis of the contract must be re-evaluated. The automatic re-evaluation can always be carried out on the basis of the evolution of a chosen index.

• Unit (field RVAFRYBAS)

• Revaluation method (field RVAMET)

Specify a contract revaluation method. Maintenance contracts can be revaluated in two ways:

• Post-revaluation: Always calculate the amount of the next scheduled invoice. Note that there is always a one month difference between the annual royalty basis and the actual index value used in this revaluation.
• Pre-revaluation: Calculate the annual royalty basis matching the exact status of the index. Note that this method cannot be used to know the amount of scheduled invoices in advance, except from the first scheduled invoice.

• Help for revaluation (field RVASSP)

This field specifies which type of revaluation is used on the service contract. Two options are available:

• Index (field CONBASIDX)

This field is only accessible if the Evolution of an index revaluation has been selected. You use it to enter index to be used at each contract revaluation. A revaluation is done by comparing the index value used during the last revaluation and the last value saved in the system for this index.

• Formula (field CONBASFOR)

This field can only be accessed if the Mathematical formula revaluation has been selected. Enter the formula code, selected from the 427 - Revaluation formulas miscellaneous table.

• Advance notice of cancellation (field RSILTI)

Depending on your activity sector, this field can have the following meanings:

• The number of days before the end of the contract, when a customer termination request can be accepted.
• The number of days during which the contract still applies after a termination request has been received from a customer.

In both cases, the termination has to be done manually from the contract record.

• Unit (field RSILTIBAS)

• Frequency (field INVFRY)

This field indicates the frequency on which the customer will receive the invoices related to the receipt of services covered by their contract. It is also used to determine what fraction of the annual royalty must be allocated to the invoice.

• Unit (field INVFRYBAS)

• Method (field INVMET)

Use this field to enter the method used for invoicing the service contract.

• Pre-invoicing (term to mature): The contract is invoiced before the contract ends. This method is used to invoice a contract before it actually applies to the customer.Example: For a three-year contract billable once a year:

• Increase/Decrease coefficient (field INVFRYCOE)

When open items are collected several times a year, an increase or increase is often applied. You use this field is to define how important this increase or decrease is.

• Advance notice (field INVLTI)

Use this field to define the notice from which a contract open item to be invoiced will be available 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.

• Unit (field INVLTIBAS)

• Payment term (field PTE)

Use this field to enter the payment terms defined for paying the contract open items.
It is only possible to enter a payment term that is consistent with the legislation and the group of the company of the document site.
The general principles linked to the multi-legislation setup are detailed here.

• Litigation code (field ACPDPTCOD)

This field is used to enter the dispute codes that trigger the management of a customer problem if the payment has not been done on time in respect to the contract due dates.

For instance, a customer's payment is two month late in respect to the contract due date. Moreover, this customer has declare a dispute with their supplier. When the customer call the customer support in order to solve a problem on one of the materials, the customer will benefit from the service if the dispute code of the due date corresponds to one of the codes mentioned on the maintenance contract.