VA41 free pricing configuration?

[Former Member]

Dear friends and experts:

Please tell me if this is possible-

I have contracts (no delivery!) set to bill $x every month for a service offered. I would like to make it so that it will offer a "free" 2 months at the beginning, then start charging the normal item price.

Is this possible via configuration? If so, what must I do? New sales contract type? Do I need new pricing procedure, and how to configure 2 free months if yes?

Best Regards,

JJ

[Former Member · Accepted solution]

Hi JJ,

Service industry works a bit different than other industries and the rules that can be easily applied to regular product sales, sometimes get tricky when you try to apply them to service contracts.

From your explanations, it looks like that you are using periodic contracts with billing plans using monthly billing to customer. One other simply manageable way to handle your requirement would be to keep the contract validity as such and start the billing plan 2 months from contract start date.

For example, contract validity is Jan to Dec but billing plan starts from March to December.

You can use transaction VOVP to define these billing dates determination rules and then they can be deployed for automatic determination in contracts. This way you will not have the problem of 100% discount condition appearing unnecessarily in the follow-on documents.

Let me know if you need more information on the above approach.

Thanks

Kapil Sharma

[Former Member]

Thanks for the suggestions. I have created a condition record for a discount of 100% in created in a certain date range.

My problem now is that even after the condition is no longer valid, it is still showing in my contract's conditions tab because the contract was created with it.

Is this possible - to make it expire on the individual sales document?

Regards,

JJ

[Former Member]

The conditions should appear in the contract but should no longer be relevant at the time of billing.

[former_member183879]

Hi,

You can control this by the validity of condition records. For the specific condition type you can maintain condition records only after the free period as validity periods. In this case, contracts created before the validity period will only have zero value.

If the condition type is maintained as mandatory, then you may have to maintain zero value for the free period in the condition record.

[Former Member]

You can create an additional pricing condition i.e. discount that cancels your service pricing condition. You can set their validity for the 1st two months of your contract. You may need to be creative in your access sequence.