contract

[ipsit_mohapatra]

Hi all,

There is one logistics comp. who deals with transportation and service related things. so i want to do a contract between the logistic comp n the client.

so how will be business process n how i'll do sevice based billing, plz help.

Thanks

[Former Member]

Hi Ipsit,

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)

These service contract types are defined in Customizing for Sales and Distribution under Sales ® Sales Documents ® Sales Document Header ® Define Sales Document Types. You can create service contract types that meet the requirements of your organization by copying the existing service contract types and adapting them as required.

After you have negotiated the terms of a service package with the service recipient, you create a service contract in the system to record this information.

Activities

You can create a service contract in the following ways:

From scratch, without reference to another document

With reference to a preceding inquiry or quotation

With reference to an existing contract

In service contract processing, you can use the following types of pricing:

Standard Pricing for the monthly service fee such as the fee for the maintenance of a photocopier

Contract-specific price agreements for the monthly service fee

In this case, you can define a condition record for the monthly fee directly in the service contract.

Price Agreements for services and materials not covered by the monthly service fee such as prices for spare parts

Pricing for standard service products

If you are using standard service products that are configurable or configured, then you can use the special pricing functions for these products. For example, you can create condition records for specific characteristic values. In addition, you can make pricing conditional on certain configurations. For more information, see Variant Conditions in Sales.

Billing Service Contract Items

Use

You can bill the monthly fee for a service package in a service contract in one of the following ways:

Single invoice billing

You create the service contract and bill the customer for the full amount during your normal invoicing run. For more information, see Creating a Billing Document in Billing.

Periodic billing plan

Maintenance and rental contracts often require that billing be carried out on a periodic basis (for example, monthly). By using a billing plan, you can create a schedule of billing dates for each item in a service contract. For example, a maintenance contract has a monthly fee to be paid on the last day of each month. The billing plan is made up of items that specify the billing date and the billing amount. As each billing plan item becomes due for billing, it is included automatically in your billing due list. The following graphic illustrates periodic billing using a billing plan:

Regards

Srikanth.A