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Service Contract

Hi all,

I have service contract scenario in my project: After selling the item to the customer, service contract is signed.

Three types of services:

1. Golden service - 10% of the price of the main order against which goods were sold to the customer.

2. Silver service - 8% of the price of the main order against which goods were sold to the customer.

3. Bronze service - 5% of the price of the main order against which goods were sold to the customer.

The payment scenario will be as under:

1. Monthly in advance.

2. Quarterly in advance.

3. Yearly in advance.

So i will have to use a periodic billing plan & assign it to the item category. The billing relevance of the item category of the service contract item will be "I".

I use the Quarterly in advance option. I create the service contract, at the line item level, the system will display 4 different invoicing lines. Also the invoice document type will be shown against each line. The dates are determined.

My question is

1. When the billing due list is run, will the system automatically include the invoicing line which is due at that time?

2. Will I have to create a sales order with respect to the service contract, do the delivery & then invoice? If this is the case, then the service contract will always be open as no invoice is created with its reference.

Please explain me the flow in detail.

With best regards,

Niyaz.

Former Member
Former Member replied

Niyaz,

1. The line items due for billing would be automatically invoiced when you run the billing due list. Provided you have done all the configuration necessary for Order related billing for billing type FV or some custom one.

2. To bill the Service contract there is no need of another sales order, Invoice contract itself is a type of sales order. All you need is to configure Order related billing and it will invoice the service contract when ever there are items due for billing.

Hope you got it. Let me know if you have any issues.

Regards,

Aj

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