Service Contract

[Former Member]

hi dudes,

reg contract

client want to create maintenance service contract.

It is the visit of engineer to their premises and it is chargeable. my little understanding on contract, to maintain target quantity in service contract and the validity will be for 1 year. We are not sure how many visits will be made in before hand. How to handle this scenario. please help

regards,

Madhav

[Former Member]

Here are a few ways of creating maintenance service contracts, firstly select agreement type WK u2013 Value Contract.

Scenario 1 u2013 Rate and Number of Visits Known:

The target value can be the agreed rate for each time the engineer visits the site multiplied by how many times the engineer visits the site per year. Quantity field in contract will be number of visits per year and rate would be the gross price field.

Scenario 2 u2013 Rate Known and Number of Visits Unknown:

In this scenario the target value will have to be an estimate on how many times you would expect the engineer to visit per year multiplied by the agreed rate. Quantity field in contract leave blank and rate would be the Gross Price field. This will allow you to have a fixed agreed rate for the engineer for each PO/Service Entry.

Scenario 3 u2013 Rate and Number of Visits Unknown; but value for yearly maintenance contract Known:

In this scenario the target value would be the value of the yearly maintenance contract. The Quantity field would be the value of the yearly maintenance contract, and the Gross Price field would have a value of "1". This will allow flexibility to enter Service Entry sheets at different rates per visit.

Hope this helps.

Zimboy