Service Contract

[Former Member]

Hello,

Could U pls Let me know the technical diffrenece between Sales Contract and Service Contract..

How Sales Contract is differen from Service Contract...

[Former Member · Accepted solution]

Service Contracts(WV):

When the business is providing service for the sake of Monitory consideration, Service Contract can be entered.

For service contract, separate pricing procedure can be used. Ex.: PSER01 – Standard Pricing Procedure for Service Contract. The condition type that is used is PPSV.

Sales Contracts:

It is a generalized term for value contracts (WK1 & WK2) , quantity contract(KM) etc. There is a contract called as Master Contract (GK) which is is basically a header contract to which all the lower level contracts are assigned, if the customer enters for all contracts with the business.

Regards

AK

Reward points if helpful

[Former Member]

You use service contracts to record the details of the service package that you have agreed to provide a service recipient with over a specified period of time. For example, you specify:

The routine service tasks which are to be performed on a piece of machinery you have sold or rented to a customer

The prices which are to apply for these routine tasks

Sales document type used to control service contract processing. There are two service contract types in the standard SAP System:

Rental contract (MV)

Maintenance contract (WV)

Element of the service contract in which you define the services or products you are providing the customer with under the terms of the service contract. A service contract item can be any of the following:

Service (for example, a particular task)

Material (for example, a spare part)

Time (for example, an hourly rate for a technician’s time on the job)

Response time (how soon you are obligated to respond to a problem call)

Warranty (the agreed duration and coverage)

The items in a service contract are controlled by item category. It is possible for a service contract to include items with different item categories. For example, some items may be rented, others sold.