hi
The service contract is an interface and a legal agreement between the receiver of the service and thebusiness supplying the service. It is used beneficially by the business for initiating automatic billingof routine services at regular intervals, for example, and can determine if a cancellation request ofthe contract is valid. It is used beneficially by the receiver of the service as a contract he can claim,
with easy access to requests for service and set prices on specific services.
Sales Document Type Is WV
Generally, a service contract need not have a call-off or release order, nor does it need to be createdwith reference to other sales documents. For a service and maintenance contract, no delivery isnecessary; due to the process being the offering of a service, no materials are relevant for delivering.
A service contract should have its own specific pricing procedure compared to the standard onethat may be used by the business This is due to the fact that the distribution ofservices may be controlled very differently to that of the distribution of materials.
Let’s look at the sales document header in
the IMG, Sales and distribution, Sales, Sales
documents, Sales document types. By looking at the contract settings of the sales document type, we note the following: The contract profile available for assignments in contracts is predefined as aprofile defaulting validity dates and cancellation procedures in the contract. We will cover contract
profiles later.
The reference procedure is used for master contracts to determine which data is to be copied or proposed into lower level contracts. The referencing procedures are configured with master contracts
The Contract data allowed field is a critical field used by the system in contracts. As contractdata, validity periods and cancellation data may be kept at the header as well as the item level of thecontract. This field indicates to the system what to do when data differs between the header and item levels. With the Contract data allowed set at X, the system will not copy any changes you make in
the header level to the item levels. This is also true even if the data at the headerand line items were identical prior to the header data being changed. With the setting at Y, the system automaticallycopies all header data from the header into the item in the contract, but only if the header and item
A service contract should have its own pricing procedure.
The follow-up activity type speeds up the creation of follow-up activities. For example, the
follow-up sales activity type 0002 (telephone call) is specified for sales document type WV (service
contract). You can create a follow-up activity worklist for contracts by choosing Outline agreement,
Contract, Subsequent functions, Follow-up actions and then maintain the selection criteria as
required. Then select all contracts with the follow-up action “Create sales activity” and choose Edit,
Follow-up actions. A dialog box is then displayed that proposes the sales activity type 0002. Select
Save and the follow-up sales activities for the selected contracts will be created automatically. In this
case, a workflow will be sent to the user to make the sales call.
Should the follow-up action have been to create a quotation, you would need to enter a
quotation document type in the field Subsequent order type. Then when you select Outline
agreement, Contract, Subsequent functions, Follow-up actions, the system will propose the order
type you entered in this field. The Check partner authorization field determines which partners are
authorized to release a contract. Should no check be performed, you may leave the field blank.
Partners for Release Orders The release partner is the sold-to party (partner function AG, the
German standard) of the contract or it may be a partner in the contract that has a partner function of
AA, which is the partner function of an authorized release partner. This is the standard checking rule
A.
In the standard checking rule B, the system checks if the partner wanting to be released from the contract is a lower level customer in the customer hierarchy. You can also create multiple ship-to parties for the specific contract. The standard (German) ship-to party partner function is WE, but you may have more than one ship-to party; thus, you may assign ship-to parties with the partner function
AW.
Assign both the release sold-to parties and the release ship-to parties to the sold-to party of the
contract in the customer master record. Thus, when you create the individual contracts, the system
will propose these assigned partners. Please also refer to partner determination in Chapter 4 where
this configuration is explained.
The Update lower level contracts field need not be initiated, as the contract in question is not a
master contract. This field is used by the system to update lower level contracts, should the data you
are changing be the master contract. These changes are then passed down to the lower level contracts
via workflow. If this field is not set, the system will only update the lower level contract when it is
reprocessed.
The standard item category for a service is WVN. You may need additional item categories,which will possibly be the case, due to the multiple types of items available on a service contract.
After setting up the relevant document type and item categories, proceed to mapping the
copying control rules. Create the service contract by proceeding as follows: Logistics, Sales and
distribution, Sales, Outline agreement, Contract. Then select the respective contract you wish to
create, such as WV. Enter the relevant details including the material and target quantity.
Message was edited by:
prashanth goud
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