PLM330_Service Contracts.pdf

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SAP AG 2003

PLM330 Service Contracts

THE BEST RUN E BUSINESSES RUN SAP

© SAP AG 2002

PLM330Service Contracts

SAP R/3 Enterprise

2003/Q4

Material number 50063097

Contact for Buying SAP Module Materials: [email protected] Visit: www.sapeducation.co.nr



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Copyright 2003 SAP AG. All rights reserved.

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Prerequisites

PLM301 - Customer Service

Basic knowledge and experience of

the service business processes




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Target Group

Audience

Project team leaders

Members of the project team in charge of implementing

CS - Customer Service

Duration: 3 days

Notes to the user:

The training documentation and materials are not designed as a self-teach program. They should be

used in conjunction with the explanations of the instructor. Your documentation provides spacefor you to note down additional information.




© SAP AG PLM330 1-1

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Course goals

Course objectives

Course content

Course overview diagram

Main business scenario

Contents:

Course Overview





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This course will prepare you to:

Obtain an overview of the different options

available for structuring service contracts in the

R/3 System

Describe service products, service contracts,

price determination and billing

Model the business processes for contract

processing

Make the Customizing settings for service

contracts

Course Goals





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At the conclusion of this course, you will be able to:

Create service products and service contracts

in the R/3 System

Bill, settle and evaluate service contracts

Make the necessary system settings for

service products and service contracts

Course Objectives





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Unit 5 Price Determination

Unit 6 Billing

Unit 7 Contract Settlement

and Controlling

Unit 1 Course Overview

Unit 2 Introduction

Unit 3 Service Products

Unit 4 Service Contracts

Preface

Appendix

Course Content





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BillingBilling

Course Overview Diagram

Service ContractsService Contracts

Price DeterminationPrice Determination

Service ProductsService Products

IntroductionIntroduction

Contract Settlementand Controlling






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Our company provides different services for the

customers.

Long-term agreements exist with the customers

for these services.

The customers make regular payments, which

cover these services wholly or in part.

Main Business Scenario





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Categorization and description of services

Characterization of service agreements

Introduction





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At the conclusion of this unit, you will be able to:

Describe the different types of service

List the different types of service agreement

Introduction: Unit Objectives





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BillingBilling












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Our company provides various services.

It also uses services from external companies.

Different service agreements are made.

Introduction: Business Scenario





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Categorization and Description of Services:Topic Objectives

Describe the different types of service

At the conclusion of this topic, you will be able to:





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Technical services

Installed base

Preventive maintenance

Repair

General services

Hotline

Consulting

Training

Rent/leasing

Service Categories

Services can be sub-divided based on their content into technical and general services.

The R/3 System provides you with various options for describing the different services and

supporting the complete process of providing services.





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Frequency of Services

Time

One-time/sporadic services

Installed base

Repair

Regularly recurring services

Preventive maintenance

Cleaning

Consulting

Training

Permanent services

Hotline

Rent/leasing

Services can be differentiated by how frequently they are provided.

One-time or sporadic services are performed once and probably will not occur again in the same

form. Recurring services are proivded at certain intervals. Some of the dates when the services are

provided can be fixed in advance.

Permanent services are provided, or requested by the customer, continuously within a particular

period.





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Description of Services in R/3

Material masters

Purchase of services

Sale of services

Service masters

Used exclusively for the purchase of

services

Texts

Used exclusively for the purchase of

services

Material masters are used to describe services that are purchased in MM and sold in SD. Whenever

you want to sell services, you have to create material master records.

If you purchase services, you can alternatively use service masters in external services management. You can also create service purchase orders with text items.





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Providing Services in R/3

Sales orders

Agreement of services and conditions with the customer

Service orders

Planning, scheduling, executing, monitoring and settling service

tasks, including recording of costs and billing

Service notifications

Preparing, executing and monitoring service tasks without

recording of costs and billing

Projects

Planning, scheduling, execution, monitoring and settling complexservice tasks, including recording of costs and billing

Depending on the contents and scope of the service work, you can use various documents to provide

services in the R/3 System.

These documents can also be used in combination.





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Characterization of Service Agreements:Topic Objectives

List the different types of service agreement






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Distinguishing Between Service Agreements

Type of agreement Objects in R/3

One-time agreement

Long-term agreement

Warranties for serviceable

items

Service level agreement

Sales order

Service order

Contract / outline agreement

Master warranty with

assignment to technical

object

Response andservice profiles

One-time agreements are represented as sales orders and/or service orders.

Long-term agreements are stored as contracts or outline agreements.

Warranties are issued to the customer for the serviceable items sold. They are created as masterwarranties in the CS component and assigned to the respective master records for the technical

objects.

In a service level agreement, the service provider commits themselves to respond to a customer

problem within a certain time. The response and service windows are entered in the response and

service profiles.

This course deals with long-term agreements and the options for setting up and monitoring a service

level agreement.





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Verification of Services Provided

Service notification activities

Activity reports

Completion confirmations for

service order

Hours worked

Material withdrawals

External services

Other resources required

Contract release orders

In the same way as for a normal sales order, the R/3 System also provides various options for

documenting services that have been provided.

You can use activity reports and activities for a service notification to document the service work provided without generating cost or billing information. Activity reports can be created with

reference to a service order.

Completion confirmations are used to document the resources required to execute a service order.

The completion confirmations result in costs and can be used as the basis for resource-related billing.

Services released are documented using contract release orders with reference to a value or

quantity contract.





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There are different ways of representing services

and service agreements in the R/3 System.

Depending on your requirements, you can use

these methods individually or in combination.

Introduction: Unit Summary





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Fixed service product

Configurable service product

Configured service product

Service Products





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Describe the different types of service product

Create the different types of service product

List the necessary system settings for creating

service products

Service Products: Unit Objectives





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BillingBilling












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Our company provides various services.

These services are represented and described in

the system.

Service Products: Business Scenario





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Overview of Service Products

Fixed

service product

Configuredservice product

Configurable

service product

• Characteristic values to be entered in contract

• Conditions depend on characteristic values

• Characteristic values from values in material master• Conditions in accordance with price determination

• No characteristic valuation

• Conditions in accordance with price determination

Fixed, configured, or configurable service products can be entered as contract items.

No valuation is possible for fixed service products. The conditions are established using standard

price determination. For configurable service products, the values of the characteristic values must be entered in the

contract. The conditions can be dependent on the characteristic values.

For configured service products, the characteristic values come from the valuation in the material

master record. They cannot be changed in the contract.





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Fixed Service Product

Non-configurable material

Material master for each product

No variations possible

Price is based on service quantity and time

Examples:

Standard repair service

Standard hotline service

Standard maintenance service

The standard material type for service materials is DIEN.

The services are described using the material text.

The prices defined for these materials can be daily, weekly, monthly, or yearly prices.





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Standard material type: DIEN = Service

No inventory management

Item category group: LEIS = Service without delivery

No delivery

Order-related billing

Material master views:

Basic data

Classification: Optional

Sales data

Purchasing: Only if the service is purchased from an external provider

Accounting: Only for internal valuation with prices

Characteristics of Fixed Service Product

Materials of material type DIEN are not managed as items held in the inventory.

The item category group in the material master influences the determination of the item category in

the sales document. Item categories for services do not result in deliveries. They make order-related billing possible.

When you create a material master, the system proposes various views, depending on the material

type. Some of these views need only be created under certain conditions.

The view "Classification" need be created only if an assignment should be made to one or more

classes and a characteristic valuation performed.

The purchasing views need to be created if the same service product should also be purchased.

The accounting views need only be created if an internal price is to be stored for the service product.





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Configurable Service Product: Topic Objectives

Describe the features of configurable service

products

Create configurable service products






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Configurable Service Products

Indicator "Configurable"

Assignment to one or more classes

Characteristics are assigned to classes

Valuation made in the service contract,

not material master

Attributes of characteristics and characteristic

values can be stored in object dependencies

Sales conditions can be defined for characteristic

values

Configurable materials either have the material type "KMAT”, for which the system automatically

sets the indicator ”Configurable", or another material type, for which you must set this indicator

when creating the material master. You can describe different variations of a service using the material number and the respective

characteristic valuation.





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Classification: Definitions

A class is a group of objects with the same or

similar features.

An object is an entity that can be classified (for

example, material, equipment...).

A characteristic describes the features of an object

(for example, response time, servicing site).

A characteristic value describes the features of a

characteristic (for example, 1 hour, at the customer

site).

The classification of objects contains theassignment to one or more classes and the

allocation of values to the characteristics.

The variant configuration is used to describe complex products, which can exist in several variants.

All variants are represented using a variant product, the configurable material.

When a class is assigned, characteristics, which are used to describe a specific variant, are assignedto the variant product.





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Characteristics

Characteristics are used to describe and classify

objects.

Any feature of an object is described using a

characteristic.

Characteristics are used in:

Classification system

Quality assurance

Variant system with the respective

configuration options

Proposal of standard values,

and so on

Site

SizeService

Execution

Response

time

Characteristics are used in the classification system to describe the features of objects. The individual

features of a characteristic are represented using characteristic values.





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Contents of a Characteristic

Basic data

• Name of characteristic: SERVICE_OBJECT

• Description: Serviceable item

• Format: 10-character field, character format

• Entry required: Yes

Permitted valuesAdditional data

• Reference to table field

• Value assignment procedurePC

Copier

Printer

Default

Format: Data type, number of characters, units, single or multiple values.

Possible data types: Character formats, numeric format, date format, time format, currency format.

Further types can be defined by the user. You can define permitted values directly, or use tables or function modules to check them.

You can define a reference for a table field in the additional data section. Documents can also be

included in a characteristic. The value assignment procedure controls interface attributes for the

characteristic (not input ready, no display, display permitted values).

Further characteristic data includes the restriction of class types allowed (this means you can only

assign the characteristic to classes of these class types) and the classification of characteristics.





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Linking Characteristic to Table Field

Response

profile

ResponseResponse

profileprofile

Characteristic

Table

HIER

Link to

additional data

of characteristic

Link toLink to

additional dataadditional data

of characteristic of characteristic

Examples:

Response and service profiles

Variant conditions

Can also be used for

customer-specific tables

T355E Response profile

Client

ESCAL Response profile

MANDT

Hierarchy level

You can assign a characteristic to a table field for the following purposes:

The characteristic value entered during the characteristic valuation is transferred to the table field

(for example, response and service profiles for determining the tasks in the service notification,variant conditions for price determination).

The characteristic value is copied from the table field (for example, characteristic "Manufacturer" for

equipment, the value is copied from the corresponding field in the equipment master record).





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Classes

Site

Strategy

Serviceable

item

Inspection services

Class:

Characteristics:

The purpose of a classification system is to describe objects using characteristics.

Similar objects are grouped in classes (classified) according to freely definable criteria.

In the variant configuration, a class contains the features that describe a configurable material. Bylinking the class with the configurable material, the material can be configured using the class

characteristics.

To use a class in the variant configuration, it must be created in a class type that supports the variant

configuration. To do this, the indicator "Variant class type" must be set for the class type in the

Customizing for the classification system. In the standard system, this is class type 300.





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Content of a Class

Basic data

• Class: INSPECTION_SERVICE

• Class type: 300 (variants)

• Description: Class for inspection services

• Other

Characteristics

Keywords

Other

Serviceable item

Service strategy

Service site

Service scope

The class type is a central term in the classification system. The class type is used to control the

processing of classes, as well as classification and object search functions in these classes.

Class types are always created for a particular object type (for example, material). Objects of thistype can then be classified in classes of this class type.

Other basic data includes the assignment to a class group, validity period, response in the case of the

same classification, and authorizations.

In the characteristic assignment, the characteristics are entered that should be used to classify the

objects in this class. It is possible to change characteristics specifically for one class.

Keywords are used to search for classes using matchcodes.

Other class data includes texts, assignments of documents, and data for standards/norms.





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MaterialConfiguration

profile

Class 1

Class 2

Objectdependencies

Configuration Profile for Material

The configurable material is assigned to one or more classes in the configuration profile.

These classes contain the characteristics that describe the material.

The configuration profile is also where the parameters for the configuration are defined. It is also possible to assign object dependencies in the configuration profile.





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Object dependencies describe the

interdependencies between characteristics,values and objects.

The following three functions are involved:

Object dependencies check the consistency of the

configuration

Object dependencies check the completeness of the

configuration

Values can be derived using object dependencies

Object Dependencies

Object dependencies can be stored globally or locally.

Global storage is performed using a specific menu function; this means that the object dependencies

can be used more than once. Object dependencies are maintained centrally. Local storage is valid for one specific location only (for example, characteristic, class, configuration

profile, operation, BOM item).

The defined object dependencies can be checked in the configuration simulation.





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Types of Object Dependency

Precondition: ensures that

A characteristic value may be set OR

A characteristic can be assigned a value

Selection condition: ensures that

A characteristic must be assigned a value OR

A BOM item or operation must be selected

Procedure: derivation of characteristic values

Constraints: monitoring of consistency

Preconditions can be created for characteristics and characteristic values. You can use a

precondition to determine whether a characteristic value may be set or whether a characteristic can

be assigned a value. Example of a precondition: You can only assign a value to the characteristic Service radius if the

characteristic Service site has been evaluated with At customer .

You can assign Selection conditions to characteristics, operations in task lists, and BOM items.

Example of a selection condition: The operation Install Windows is only selected if the characteristic

Operating system has been evaluated with Windows.

You can assign Procedures to characteristic values, characteristics, and the configuration profile. A

procedure may include a series of statements that are evaluated in the exact sequence in which they

appear. It therefore has the character of a program.

Example of a procedure: If you enter a value between 10 and 20 for the characteristic Number of

PCs, the characteristic Network scope is valued with A.

Constraints are primarily intended for highly interactive configuration tasks in which dependencies

between the characteristics of several objects are considered.

Activities are an old type of object dependency. In almost all cases you can now replace them with procedures.





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Inspection

tasks

Inspection

locations

Configurable Service Products - Context

Configur-

ableMaterial

Classes Characteristics ValuesConfiguration

profile Printer PC

Copier

Monthly

Quarterly

Yearly

Internal

At customer's

< 1000 km

> 1000 km

Inspection

serviceInspection

service

Object

Interval

Location

Distance

A configuration profile must be created for each configurable material. This profile defines certain

characteristics of the configuration.

In the configuration profile or in the material master, the material is assigned to one or more classes. Each class contains one or more characteristics.

You can define possible values (characteristic attributes) for each characteristic.

Interactions between individual characteristics and characteristic values are represented using object

dependencies.

You can also assign sales conditions, in other words, prices or surcharges/discounts for

characteristic values. The system takes these variant conditions into account during pricing in the

order.





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Creating Configurable Materials - Procedure

1. Create material master

2. Create characteristics

3. Create class and assign

characteristics

4. Create configuration profile for

material and assign class(es) to

profile

5. Define and assign objectdependencies

6. Assign conditions to the

characteristic values

Characteristics and permitted values are created in the classification system.

Classes are also created in the classification system. The characteristics are assigned to each class.

Configuration profiles for configurable materials are created in the variant configuration. Object dependencies can be defined centrally and then assigned to the configuration profile, class or

characteristic. Alternatively, object dependencies can be created locally for the respective object.

You can assign sales conditions (prices, surcharges, discounts) to the characteristic values as variant

conditions. The procedure is described in the "Price Determination" unit.





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Configured Service Product: Topic Objectives

Describe the features of configured service

products

Create configured service products






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Configured Service Product

Configured service product is a variant of the

configurable service product

Material master exists for each variant, with reference

to configurable material

Characteristic valuation made in material master

Valuation of variant (description of service product)

specified in material master record and cannot be

changed in service contract

A configured service product is a variant of a configurable service product.

This enables frequently-used variants to be defined in the system.

A material becomes a configured material when it is assigned to a configurable material in view"Basic Data 2" (at client level) or the view "Materials Planning 3" (at plant level) of the material

master. The material number of the configurable material is entered.

The variants are then valuated, in other words, the characteristic values are entered for the

characteristics of the configurable material.

You can display this valuation in the contract item, but you cannot change it.





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Configured

material:

Hotline service 3

Configured

material:

Hotline service 2

Features:Features:

Configured

material:

Hotline service 1

Configured Service Products: Example

Configurable

material:

Hotline service

Characteristics:

1. Service profile

2. Response profile

Features:

Monday - Friday

08.00 - 17.00

Monday - Friday

24 hours per day

Monday - Sunday

24 hours per day

4 hours 2 hours 2 hours

The characteristics "Service profile" and "Response profile" are assigned to the configurable material

"Hotline service".

Since not all possible combinations of service and response profiles should be offered to thecustomer, configured materials are created with the relevant valuations.





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Creating Configured Materials - Procedure

Create a configurable material and assigncharacteristics

Create the configured material

Reference to the configurable material

Characteristic valuation in the material master

Result: Configured material as variant of

configurable material

The configuration can be client-specific (entry in the material master view Basic Data 2) or plant-

specific (entry in the material master master view MRP 3).

A plant-specific configuration should only be selected if the product has different features indifferent plants.





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The service products offered are created as fixed,

configurable or configured material masters. Characteristic valuation is performed in the sales

document for configurable service products.

Characteristic valuation is performed in the

material master for configured service products.

Dependencies can be described using object

dependencies.

Service Products: Unit Summary





Data Used in the Exercises

Data Data in the Training

System

Data in the IDES System

Sales organization 1000 1000

Distribution channel 10 = End customer sales

14 = Service

10 = End customer sales

14 = Service

Division 00 = Cross-division 00 = Cross-division

Customer masters 1171

T-CSD##

1171

Fixed service

product

REPAIR_SERVICE REPAIR_SERVICE

Configurable

Service Products

INSPECTION_SERVICE

HOTLINE_SERVICE

INSPECTION_SERVICE

HOTLINE_SERVICE

Configured ServiceProducts

HOTLINE_SERVICE_A

HOTLINE_SERVICE_B

HOTLINE_SERVICE_C

HOTLINE_SERVICE_A

HOTLINE_SERVICE_B

HOTLINE_SERVICE_C





Service Products: Exercises

Unit: Service Products

Topic: Fixed Service Product

At the end of these exercises, you will be able to:

• Create fixed service products

Fixed services that do not vary are provided for the customer.

1 Creating a Fixed Service Product

Create a fixed service product.

Material type: Service

Material number: PR##1 (## = your group number)

Industry sector: Mechanical engineering

Views:Basic data 1, sales: Sales organization data 1 and 2

Organizational data:

Plant 1200, sales organization 1000, distribution channel 14

Short text: Simple repair service

Unit of measure: LE

Division: 08 (Services)

Delivering plant: 1200 (Dresden)

Tax classification: 1 (full tax)Statistics group: 1 (relevant for statistics)






Topic: Configurable Service Product

At the end of these exercises, you will be able to:

• Create configurable service products

• List the contexts in which configuration is used

Services that differ in the service contract are provided for the customer.

1 Creating a Configurable Service Product

Create a configurable service product.


Material number: PR##2


Views: Basic data 1 and 2, sales: Sales organization data 1 and 2

Organizational data: Plant 1200, sales organization 1000, distribution channel 14

Short text: Maintenance service

Unit of measure: LE

Division: 08 (Services)

Set the indicator material is configurable and confirm the warning message using

Enter.

Delivering plant: 1200 (Dresden)

Tax classification: 1 (full tax)

Statistics group: 1 (relevant for statistics)

Item category group: 0002 (configuration)





2 Creating Characteristics

Create two characteristics.

First characteristic:

Characteristic name: CH##1 Description: Maintenance scope

Data type: Character format

Number of characters: 1

Value assignment: Multiple values

Entry is required.

Possible characteristic values:

M = Maintenance

I = Inspection

Save the characteristic.

Second characteristic:

Characteristic name: CH##2

Description: Wear and tear parts included

Data type: Character format

Number of characters: 1

Value assignment: Single-value

Possible characteristic values:

Y = Yes

N = No

Save the characteristic.

3 Creating a Class

Create a class:

Class: CL## Class type: 300 (material - variants)

Description: Maintenance group ##

Assign the characteristics CH##1 and CH##2 to this class.

Save the class.





4 Creating a Configuration Profile for the Material

Create a configuration profile for your material PR##2.

Profile name: PR##

Class type: 300 Assign your class CL##.

5 Creating and Assigning a Relationship

Create the following single dependency:

The characteristic CH##2 should then only be assigned once the characteristic

CG##1 has been given the value M.

Relationship: DE##

Description: Precondition – Wear and tear parts Relationship type: Precondition

Syntax: CH##1 eq ‘W’

Status: 1 (release)

Assign the relationship to your characteristic CH##2.

6 Testing Object Dependencies

Test the object dependency in the configuration simulation.

Plant: 1200






Topic: Configurable Service Product

At the conclusion of these exercises, you will be able to:

• Create configured service products as variants of the configurable

service products

Fixed variants of particular services are provided for the customer.

1 Creating a Configured Service Product

Create a configured service product.


Material number: PR##3


Views:

Basic data 1, sales: Sales organization data 1 and 2, MRP 1 and 3

Organizational data:

Plant 1200, sales organization 1000, distribution channel 14

Short text: Maintenance/inspection without wear and tear parts

Unit of measure: PU

Division: 08 (services)

Delivering plant: 1200 (Dallas)

Tax classification: 1 (full tax)

Statistics group: 1 (relevant for statistics)

MRP type: ND (no materials planning)

Assign your material PR##2 as the configurable material (cross-plant).

Perform the characteristic valuation for the variant:

Scope of maintenance:Preventive maintenance and inspection

Wear and tear parts: No





2 Creating Material Prices

Create material prices for your three service products.

Condition type: PPSV

Key combination: Material Sales organization: 1000

Distribution channel: 14





Service Products: Solutions


Unit: Fixed Service Product

1 Creating a Fixed Service Product

Menu path: SAP menu Logistics Materials Management Material

Master Material Create (Special) Service(s)

Field Name or Data Type Values

Material PR##1

Industry sector Mechanical engineering

Enter

Select the views Basic Data 1, Sales: Sales Org. Data 1 and 2, and choose

Continue.


Plant 1200

Sales organization 1000

Distribution channel 14

Enter

Field Name or Data Type Values Material short text Simple repair service

Base unit of measure PU

Division 08

Enter


Delivery plant 1200

Tax classification 1

Enter


Statistics grp. Material 1

Save






Unit: Configurable Service Product

1 Creating a Configurable Service Product Logistics Materials Management Material Master Material Create

(Special) Service(s)


Material PR##2


Enter

Select the views Basic Data 1 and 2, Sales: Sales Org. Data 1 and 2, and chooseContinue.


Plant 1200



Enter


Material short text Maintenance service


Division 08

Enter


Material is configurable Select

Enter (x 2)


Delivery plant 1200Tax classification 1

Enter



Item category group 0002

Save





2 Creating Characteristics

Cross-Application Components Classification System→ Master Data→

Characteristics


Characteristic CH##1

Create


Char. description Maintenance scope

Data type Character format

Number of characters 1

Value assignment: Multiple

values

Select

Entry required Select

Values


Char. value / Description M / Maintenance

Char. value / Description I / Inspection

Save



Create


Char. description Wear and tear parts included

Data type Character format

Number of characters 1

Values


Char. value / Description Y / Yes

Char. value / Description N / No

Save





3 Creating a Class

Cross-Application Components Classification System Master Data

Classes


Class CL##

Class type 300

Create


Description Maintenance group ##

Characteristics



CH##2

Save

4 Creating a Configuration Profile for the Material

Logistics Central Functions Variant Configuration Configuration

Profile Create


Select Configurable Object Material

Continue


Material PR##2

Enter


Profile name PR##

Class type 300

Select the line and choose Class assignments.


Class CL##

Save





5 Creating and Assigning a Relationship

Logistics Central Functions Variant Configuration Dependency

Single Dependency Create


Dependency DE##

Enter


Description Precondition - Wear and tear

parts

Dependency editor


Code in line 000010 CH##1 eq ‘M’

Save


Status 1

Save


Characteristics



Change

Extras Object dependencies Assignments


Dependency DE##

Save





6 Testing Object Dependencies

Logistics Central Functions Variant Configuration Environment

Configuration Simulation


Plant 1200

Continue


Material PR##2

Configuration

If you only select the maintenance scope Inspection, the characteristic Wear and

tear parts included must disappear.






Unit: Configured Service Product

1 Creating a Configured Service Product

Logistics Materials Management Material Master Material Create

(Special) Service(s)


Material PR##3


Enter

Select the views Basic Data 1, Sales: Sales Org. Data 1 and 2, MaterialsPlanning 1 and 3 and choose Continue.


Plant 1200



Enter


Material short text Maintenance/inspection

without wear and tear parts


Division 08

Enter


Delivery plant 1200

Tax classification 1

Enter



Enter


MRP type ND

Enter






Configurable material PR##2

Assign value to variant


Maintenance scope Maintenance

Inspection

Wear and tear parts included No

Save

2 Creating Material Prices

Logistics Sales and Distribution Master Data Conditions Select Using

Condition Type Create


Condition type PPSV

Enter


Key combination Material

Choose




Material PR##1

PR##2

PR##3

Amount Enter an amount for each

Save





SAP AG 1999

Definition of service contracts

Hotline service contract

Maintenance contract

Repair contract

Value contract

Service Contracts





SAP AG 1999


Make the necessary Customizing settings

for service contracts

List the different types of service contract

Create service contracts

Service Contracts: Unit Objectives





SAP AG 1999

BillingBilling












SAP AG 1999

Different service contracts are drawn up with

customers. The contracts contain the services to be

performed and how these services will be

settled.

Service Contracts: Business Scenario





SAP AG 1999

Definition of Service Contracts: Topic Objectives

List the contents and features of contracts

Make the Customizing settings for service

contracts






SAP AG 1999

In a service contract, you define

for whom

in which period

which services

on which conditions

should be performed.

Contents of Service Contract

For whom: This refers to the different kinds of customer (sold-to party, ship-to party, bill-to party,

payer, and so on).

In which period: The period is determined by information regarding the contract validity period andcancellation rules.

Which services: The services are described by service products in the contract items.

Conditions: These include the contract fees that must be paid regularly and the price agreements for

resource-related billing.





SAP AG 1999

Contracts - Sales Document Types

Outline agreements

Scheduling

agreements

• LP Scheduling

agreement

• LZ Scheduling

agreement

with release

• LK External agent

scheduling

agreement

• . . .

Contracts

• WV Service and

Maintenance

• WK1 Value contract

- general

• WK2 Value contract

- material-related

• KM Quantity contract

• MV Rental contract

• GK Master contract

Outline agreements play an important in almost all business processes. In outline agreements,

customers and vendors make agreements, through which certain goods or values for defined

conditions are accepted over a specific period of time. Outline agreements enable better planning of business processes for both partners.

In the R/3 System, contracts are represented as sales document types. The standard R/3 System

provides a number of different document types, which you can use directly or as references for your

own processes.

Outline agreements can be divided basically into scheduling agreements and contracts.

The scheduling agreement is an outline agreement with the customer, in which delivery quantities

and dates are fixed.

These contracts comprise the following forms: Service contract, value contract, rental contract and

group master contract. Contracts can deal with goods as well as services.

The quantity contract is a contract, for which the acceptance of a certain number of goods or

services is agreed.

The group master contract is a document, under which you can group contracts as sub-contracts.

The group master contract represents the general framework conditions for the sub-contracts.





SAP AG 2001

Structure of a Service Contract

Data at item level

Services Configuration

Technical objects

Data at header and item level

Sales data

Contract data

Billing data

Billing plan

Conditions

Account assignment

Partners

Texts

Purchase data

Status

Price agreements

Output

The contract is a special form of sales document.

It consists of an contract header and one or more items.

The following principle applies to data that can be entered at header and item level: Header dataapplies to all items for which no other data has been specified.

Contract-specific data can only be found in contracts, not in other sales documents. This data

includes contract data, price agreements, and the assignment of technical objects to the contract item.





SAP AG 1999

Contracts - Customizing

Basic functions

Determination of prices, taxes, accounts,output, partners and texts

Incompletion control

Header data: Control using the

sales document type

Item data: Control using

item categories

Contract data: Default values from

contract profiles

Billing plan: Control using

billing plan type

The basic functions include the automatic determination of:

Prices or conditions (see the unit on "Price Determination")

Taxes (for example, output tax)Accounts for updates in financial accounting

Output (for example, confirmation that orders or invoices have been printed)

Partners (sold-to-party, ship-to party, contact person and so on)

Texts (for example, additional texts for quotations or orders)

In the incompletion control function, you can determine which data must be entered for a sales

document to receive the status "Completed" so that it can be processed.

The billing plan types are described in the unit on "Billing".





SAP AG 2001

Sales Document Types for Contracts

Document pricing procedure

Incompleteness procedure

Billing type

Billing plan type

Contract profile

Pricing procedures

Referencing procedure

Sales doc. category G = contract

Transaction flow

Reference to master contract

Billing document

Contract data

Contract data header/item

Check partners authorized for

release

Follow-up actions

Update sub-contracts

The sales document type is internally identified as a contract by the sales document category.

The document pricing procedure is used to determine a pricing procedure for the price

determination. In the incompleteness procedure, you determine the data that must be entered in the contract header

for the sales document to receive the status Completed .

The billing type for resource-related billing is used when the contract fee is invoiced during periodic

billing.

The billing plan type entered here is used to create a billing plan at header level.

The contract profile contains default values for the contract data.

The pricing procedures assigned in the contract data are used for selecting the condition types in

the contractual price agreements.

You can use the Contract data allowed field to control whether contract data for this sales

document type can be entered and how changes in the header data affect the item data.

You can check partners authorized to release for value or quantity contracts against the contract,

or against a customer hierarchy.

Follow-up actions are triggered shortly before the end of the contract term. Referencing procedures and sub-contract updates are entries for group master contracts.





SAP AG 2001

Item Categories for Contracts

Billing plan type

Incompleteness procedure

Business data

Completion rule

Relevance for billing

Price determination

DIP Profile

Transaction flow

Value contract

Value contract material

Contract release control

The completion rule determines when an item is complete. (After the full quantity is referenced,

after the full value is referenced, or from the first reference by a contract release order).

Billing relevance 'I': Relevant for order-related billing using a billing plan.

Billing plans are created for the billing plan type entered here in the contract items.

The DIP profile and billing type control control resource-related billing with contract reference.

The incompleteness procedure determines which data must be entered in the contract item for the

item to receive the status Completed .

The material entered in the field Value contract material is transferred to the value contract item. It

supports technical control with reference to tax determination, statistical update, division, and other

values derived from the material master.

The contract release control determines how the system responds when the call-off value for a

value contract item exceeds the open target value (warning, error message or no reaction).

The revenue recognition controls the deferral of revenues from periodic billing to the correct

accounting period. It is set in the basic functions under Account assignment , and you use the item

category to control it.





SAP AG 1999

Service Contract - Contract Data

Validity period

Start

End

Date determination rules

Activities to be performed when

contract ends

Cancellation

Cancellation procedure/conditions

Cancellation data

The data concerning the contract validity period includes the contract start and end dates, the

validity period and further date information (contract signature, installation, acceptance,

dismantling). Contract start and end dates can be established using date determination rules.

You can also establish which sales activity should be triggered when the contract expires. For

example, this could involve creating a quotation or visiting the customer.

The cancellation data contains the cancellation procedure, in which the cancellation rules or

conditions are defined. When the contract is cancelled, the cancellation data is entered (eason for

cancellation, cancellation receipt date, requested date). The system checks whether the cancellation

request date conforms to the rules defined.





SAP AG 2003

Contract Data in Sales Documents

Dismantling Date:

Order

Screen: Contract Data

Contract Start: 07.01.

Installation Date:

Acceptance Date:

Contract Conclusion:

Contract End: 31.12.

RequestedCancellation Date:

Cancelling Party:

Cancellation Received:

Sales Doc. Type: RC

Contract Data Allowed: X

Sales Doc. Type: RC

Rental Contract

Customer: C1

Order

Header

Item 10

Item 20

IMG

In Customizing for sales document types, you can activate the contract data.

Blank No contract data

X Contract data is permitted. Any changes to the contract header are not copied to the items.

Y Contract data is permitted. Changes to the contract header are automatically copied to the

items if the header and item data were previously identical.

Changes are saved in a log. The log also notes any possible problems and inconsistencies.

You can maintain contract data at both the header and the item level in the sales document. Contract

data at header level is valid for all items as long as the data at item level is not different.

You can use the date determination rules so that the system automatically finds deadlines relevant to

the contract.





SAP AG 1999

Cancellation procedure

Cancellation rule 1

Cancellation rule 2

Contract profile

• Contract start / end

• Validity period category

• Action with date

Sales

document type

Determination of Contract Data

A contract profile is assigned to the sales document type. The contract profile contains default

values for the determination rules for contract start and end, assignment to a validity period category

(for valuation purposes), and the follow-up action (including date determination rule). A cancellation procedure is assigned to the contract profile.

A cancellation procedure includes one or more cancellation rules. These contain the conditions

under which a contract may be cancelled by the customer.





SAP AG 2003

Determining Dates

Proposal

RC - Create Contract

Contract Start: 08.07.2000

Contract End: 07.07.2001

Rule 05

Rule 08

Manual

Entry

Installation Date: 08.07.2000

Contract Profile 0001

Contract start rule: 05

Contract end rule: 08

Duration: 1 year

Sales Doc. Type: RC

Contract Profile: 0001

Date Determination Rules:

01 - Today's date

02 - Start of contract05 - Installation date

08 - End of period

12 - Start of contract + 1 week

. . .

Cancellation proc.: 0001

IMG

IMG

When you create a contract the system proposes, for example, the start and end dates of the contract.

You define the date determination rules in Customizing. These rules start the document on one of the

dates that you have set (for example, today's date or installation date). Any interval you specify canalso be added to this date. You can also schedule the date for the beginning or end of the month that

is determined in this manner.

If you specify a duration category, the system automatically generates the duration of the contract.

This can be a component of the date rule, for example, for determining the end of the contract.

If you assign a contract profile to the sales document type, the system automatically determines

default values specific to the contract. These could be:

Rules for determining start and end of the contract

Duration category

Subsequent activities

Cancellation procedure





SAP AG 2001

Rule

Follow-up

action:Follow-up

contract

Mail to person

responsible

Quotation

Contact

Contractstart

Date

according to

rule

Contract

end

Time

Action at Contract End

An action intended to extend or renew a contract should be performed in time before the contract

expires.

Possible follow-up actions include: Create follow-up contract

Create quotation

Establish contact in sales support, such as a telephone call

Send mail

If you specify a follow-up action in a contract, you must enter a date or a date rule in the Action date

field. If the system does not propose a date from the contract profile, you must update it manually.

When follow-up actions are called up, all contracts, for which the follow-up actions are maintained,

are listed. The date of the action must lie within the time period specified for the selection. The list of

contracts is sorted by date and follow-up action. You can execute the follow-up actions directly from

the list. To reach the selection screen for the list of contracts, choose Contract > Subsequent

Functions > Follow-up Actions





SAP AG 1999

Hotline - Service Contract: Topic Objectives

Create hotline contracts

Describe the effects of contracts on notification

processing






SAP AG 2001

Hotline - Service Contract

Technical objects

Service

notification Technical

reference

object

Item 10Item 10

Hotline serviceHotline service

Automatic

or manual

contract

assignment

You can use the service notification type to set whether the contract is assigned automatically

when the notification is entered, based on the technical object entered.

In the case of manual selection of a contract, you can call up a contract selection according to thereference object for the notification, or by customer (if no reference object has been entered).

Alternatively, you can enter contract and item numbers directly in the notification.

Automatic contract assignment for a service notification takes place if:

the technical reference object entered in the service notification is identical to the technical object

from contract item OR

the technical reference object entered in the service notification is subordinate to the object from

the contract in the object structure OR

no technical object is assigned to the contract item, but the customer is identical





SAP AG 1999

Hotline - Service Contract with Service Agreement

Response

profile

ResponseResponse

profileprofile

Service

profile

ServiceService

profileprofile

Characteristics

Service notification

Notification

tasks

Contract

reference

Task

determination

Item 10Hotline service

If a configurable or configured service product is used, the response and service profiles can be

assigned as characteristics and given values in the service contract or material master.

The following references to table fields in the characteristic master can be used to make the link tothe response and service profiles from the Customizing for service notifications:

"Response profile" characteristic: Field "ESCAL", table T355E

"Service profile" characteristic: Field "SERWI", table T355R

It is important that the valid characteristic values should be assigned the same key as the response

and service profiles.

If this assignment has been made, the contract-specific response and service profiles will be taken

into consideration for service notifications with contract reference when the automatic task

determination function is called up.

The tasks determined (for example, return call, send technician to customer site, and so on) arise

based on the response profile in conjunction with the notification priority. The end date and end time

for the tasks can be derived from the response times defined in the response profile, in conjunction

with the service times from the service profile (for example, daily between 8 a.m. and 5 p.m.).





SAP AG 1999

Response and Service Profiles - Example

Monday Tuesday

Service profile

8am - 12pm / 1pm - 5pm

Response profile

8 hours4 hours

2 hours

7 am - 7 pm

8 hours

4 hours

2 hours

8am 12pm 6pm 8am 12pm 18pm Time

Notification received

In this example, the response times determined are displayed for a notification received on Monday

at 12 p.m.

Response profile: 8a.m. - 12p.m. / 1p.m. - 5p.m. Response time - 8 hours: Response by Tuesday 12 p.m.

Response time - 4 hours: Response by Monday 5 p.m.


Service profile: 7a.m. - 7 p.m.

Response time - 8 hours: Response by Tuesday 8 a.m.







SAP AG 1999

Settlement of Hotline Contracts

Fully covered by contract

Notifications

for contract{Hotline contract as quantity or value contract

Notification Release order

Sales

order

1 call Assignment

Hotline contract with resource-related billing

Notification Service order Billing

document

There are three options when settling hotline services with reference to a contract.

If all problem notifications are fully covered by the contract, only simple periodic contract billing is

required. All notifications are assigned to the contract. If a certain quantity of calls or value is defined in the contract, the hotline contract should be created

as a quantity or value contract. A sales order call-off can be then be generated from a service

notification. This call-off will reduce the open quantity or value of the contract.

For resource-related billing of hotline costs, the service notification should be assigned to a service

order. Alternatively, a service order can be created from the service notification. The service order

refers to the corresponding hotline contract. The hotline costs are recorded as completion

confirmations in this service order. In resource-related billing, costs are charged to the customer. The

revenue is thereby assigned to the contract.





SAP AG 1999

Maintenance Contract: Topic Objectives

Create maintenance contracts

Create maintenance plans with reference to the

maintenance contract






SAP AG 1999

Linking Maintenance Contract to Maintenance Item

Maintenance

item

Time

Assignment in

maintenance item

Item 10Item 10

MaintenanceMaintenance

Service orders or notifications with

contract reference

In the contract item for maintenance, the service is described and the conditions defined.

To trigger service orders or service notifications automatically for the maintenance tasks, you must

create a maintenance plan with at least one maintenance item. The maintenance item describeswhat work needs to be performed, at what intervals, and for which technical objects.

Assignment is made to the contract item in the planning data for the maintenance item.

If this assignment has been made, service orders or service notifications, which refer to this

contract item, are generated during maintenance plan scheduling from the maintenance item,

dependent on the maintenance plan category used.





SAP AG 1999

Link to Maintenance Plan - Maintenance Contract

Create maintenance

plan for contract item

Maintenance plan category:• With notification

• With order

Item 10

Maintenance

Item 10

MaintenanceTechnical objects

Reference

Transfer of

default data

Maintenance plan

Contract

You can create a maintenance plan with reference to a service contract item. This maintenance plan

category enables you to simplify the processing of services, which you have agreed for service

objects in outline agreements. When a maintenance plan is created with reference to a contract item, the system automatically

copies certain data to the maintenance item. The start date is proposed from the contract item. If the

service order is the call object for the maintenance plan, a reference is made to the object list for the

contract, which can only be changed there. Additional default values are copied to the maintenance

item using the service product from the contract item.

Since you have assigned a general task list to the service product, the system receives information

about the maintenance plan type when a maintenance plan is created with "Service order" call object.

The strategy for the maintenance plan is determined using the the maintenance strategy that is

specified in the general task list. If no strategy is specified in the general task list, a single cycle

maintenance plan is created.

During scheduling, the system creates service notifications or orders with reference to a contract.





SAP AG 1999

Default Data in Contract Reference

Maintenance plan

Maintenance plan with notification

Start date

No objects

Maintenance plan with order

Start date

Object list: Reference to contract

Default data for service product

Strategy from general task list

Maintenance call object Service Notification: When you create a maintenance plan with the

maintenance call object Service notification, the system copies the contract start date from the outline

agreement as the start date for scheduling in the field Start of cycle of the scheduling parameters. Themaintenance item has no object list.

Maintenance call object Service Order : When you create a maintenance plan with the maintenance

call object Service order , the system copies the default data for the service order from the service

product. The contract start date is automatically copied from the outline agreement as the start date

for scheduling in the field Start of cycle of the scheduling parameters. The maintenance item for the

maintenance plan contains an object list. The object list in the maintenance plan refers to the outline

agreement, that is, it obtains its data from the outline agreement and can only be modified in this

agreement. All the other data for the maintenance plan data is default data that you can modify

directly in the maintenance plan.

Since you have assigned a general task list to the service product, the system receives information

about the maintenance plan category when you create a maintenance plan. The maintenance plan

type is determined using the maintenance strategy that you specified in the general task list.

The system creates maintenance calls during scheduling or when maintenance call objects (forexample, service orders) are due. The end date of the outline agreement item is the deciding factor

when creating maintenance calls and maintenance call objects. Once the contract has expired, the

system does not generate any maintenance call objects or new maintenance calls.





SAP AG 1999

Repair Contract: Topic Objectives

Create service orders with reference to a contract

Describe the effects of contracts on service order

processing






SAP AG 1999

Repair Contract

Technical objects

Contract

assignment using

notification or

manually

Service order

Price agreements

Billing

document

Consideration of price

agreements

Consideration of price

agreements

Item 10Item 10

Repair serviceRepair service

A service repair order is assigned to the contract item when the order is generated from a notification

with a contract reference. Alternatively, you can assign an order directly to a service contract item.

An automatic contract selection is not supported when creating the service order. Any price agreements made at item or header level of the service contract will be taken into

consideration during resource-related billing of the service order.





SAP AG 1999

Service Order with Service Contract

Entry of

service order

for customer

Resource-related

billing

Settlement

Against

contract

According to

conditions of

contract

Contract assignment

Service

Order

Contract

The order type "SM01" is used as the standard setting for service orders with reference to a

contract. Since it is not classed as revenue-bearing, you can assign the service order to a contract

item. The contract is assigned based on the previous notification. When processing the service order, you

can either call up contract selection or enter the sales document and item numbers for the contract

directly.

The contract assignment does not affect order planning or confirmation.

The price agreements defined in the contract are considered for resource-related billing. The billing

request and billing document refer to the contract and are displayed in the document flow.

There are two types of billing document for a contract:

Periodic billing of the contract based on the billing plan for the contract

Resource-related billing for service orders assigned to the contract

The contract item is transferred to the settlement rule for the service order as a settlement receiver.

As a result, the service order is settled against the contract. Costs and revenues for the service order

are assigned to the contract.





SAP AG 1999

Value Contract: Topic Objectives

Describe the features of value contracts

Create value contracts






SAP AG 2002

Value Contracts

Contract

Item Target Value

10 10 000 Euro

- 10% discount

Customer: Smith AG

Headquarters

Validity: 01/2003 -

12/2004

The value contract is an outline agreement between you and your customer. It defines that your

customer agrees to purchase a fixed total value (target amount) of goods and services during the

defined period. The value contract can contain other agreements between you and your customer that are checked in

the release orders:

Special price agreements

Customer restrictions

Material restrictions

If you create an order for which a valid contract exists, the system will inform you of this if you have

activated the relevant check in Customizing for the sales document type.

You can change the target values in the contract later.





SAP AG 2003

Valid Materials

Product

Hierarchy

Level

1 00001 Tools00001 Tools

0000100001 Electric 0000100002 Pneum.2

3 . . . . . . . . . . . .. . . .

D1 Installation

M1 Material 1

M5 Material 5

D3 Maintenance

... ...

Assortment

Module

In the standard system you can restrict the materials that can be released in a value contract in the

following ways:

Product hierarchy (can be searched for generically by entering the first few digits such as0000101*)

List of valid materials (assortment module)

If both the product hierarchy and the assortment module are maintained in the document, all of the

materials that belong to one or other of the material groups are valid for the release order (logical OR

link).

Assortment modules for value contracts are maintained in the master data for products. You can

define a validity period for each material in the assortment module. When you create a release order,

the system checks the respective entry date against the validity period.

If you have not made any entries in the document, all the materials defined in sales can be released

unless there are any other restrictions in copying control at item level. These materials are also

limited in that they must be permitted for the sales area assigned to the value contract (copying

control).





SAP AG 2002

Value Contracts - Release Orders

Release Order

Material Value

M1 4PC6 000 Euro6 000 Euro

-- 10% discount10% discount

Customer: Smith Inc.

Munich

Release Order

Material Value

M2 3Pc 6 000 Euro

- 10% discount


Hamburg

Release Order

Material Value

M3 5 PC 5 000 Euro

- 10% discount


New York

Contract

already

fulfilled

Contract

Item Target Value

10 10 000 Euro

- 10% discount


HeadquartersValidity: 01/03- 12/04

A release order releases a partial quantity of the agreed total value of the goods or services from a

contract. The release order is a type of sales order.

Normally, you create a release order with reference to a contract. Several functions exist forsearching for the relevant contract:

Search for suitable contracts using the partner number

Search for suitable partners using the contract number (for customer lists only)

With the item selection function, you can select items from all the valid materials. You can choose

materials directly or by exploding an assortment module.

Delivery quantities and times are stored in the schedule lines for the release order.

You can create release orders in any currency and the total value is updated in the currency of the

contract.

When you create a release order, the system checks the requirements stored in the contract such as

the release rule or validity period. The value of the release order is compared with the value still

open in the contract. You can define how the system responds when this value is exceeded.

You can assign an order to a contract later both at header and item level. The system automaticallyre-determines pricing. Values in the contract can only be updated when this assignment is defined at

item level.





SAP AG 2002

Updating Values in Contracts

Release Order

Material Value

M3 5 PC 5 000 Euro

- 10% discount

Customer: Smith Inc.New York

Returns

Material Value

M3 2 PC 2 000 Euro

- 10% discount

Customer: Smith Inc.New York

Change

Contract

Item Released Value

10 4 725 Euro


Headquarters

Validity: 01/03- 12/04Update releasevalue

Correctedrelease value

When you create a release order, the system automatically updates the released values in the

contract. The release value is calculated from the total of open order and delivery values as well as

the values in the contract that have already been billed. You can change the value in a value contract item later.

Subsequent changes to the release order are updated in the contract. These could be:

Rejected release items

Returns

Overdelivery of the release order

Pricing changes to the billing document

Deleted orders or deliveries

Cancelled deliveries or billing documents

The document flow represents the whole business process from contracts to release orders,

deliveries, billing documents and returns processing.





SAP AG 2002

Billing Value Contracts

Contract

Item Target Value

10 10 000 Euro

- 10% discount

Customer: Smith Inc.Headquarters

Validity: 01/03- 12/04

Release Order

Material Net Value

M3 5 PC 5 000 Euro

- 10% discount


New York

Bill Doc

Material Net Value

M1 2 PC .... Euro

M2 5 PC .... Euro


Billrelease?

Billing plan?

You can either bill the value contract directly or you can bill each release order.

Billing a release order

You can use standard order OR for release orders. Billing can be either order- or delivery-related.

Billing a value contract

Order type WA exists in the standard system for the release. The value contract is then billed

according to the order.

A billing plan allows you to bill the contract for several dates and partial quantities at once. The

system automatically adjusts the open billing dates if you make a subsequent change to the

target value in an item in the value contract.

The system does not support automatic billing of value contracts that have not been completely

released.





SAP AG 2002

Controlling Value Contracts

Sales Doc. Type Item Category

WK1 WKN

WK2 Material-related

WKCItem Category Group: VCIT

Usage Flag: -

Item Category Group: -

Usage Flag: VCTRWith or without

Assortment Modulewith

Value Contract

Material

There are two types of value contracts in the SAP standard system:

WK1 General value contract: This order type allows you to refer to different materials and

services according to the selection options described earlier. WK2 Material-related value contract: This is used when the contract contains exactly one material

(for example, configurable).

In Customizing, you only distinguish between the sales document types for value contracts WK1 and

WK2 in the screen sequence group for document header and item.

You can maintain the value contract material in the item category. It acts as a technical vehicle in the

contract item for determining important data, such as account assignments, taxes or statistical

updates.

Document type WK1 uses item category WKN. Document type WK2 uses item category WKC.

According to what you enter in the item, the system determines the item category with the usage

indicator VCTR or the item category group VCIT. In copying control, you can decide at item level if

the value contract material should be copied to the release, (WKC) or not (WKN).

If a release exceeds the target value in a contract item, you can configure how the system reacts: no

response, two different warning messages and an error message. In the standard system, value contracts (document determination procedure Y) use pricing procedure

WK0001 with condition type WK00 for the agreed target value.





SAP AG 2003

Partners Authorized to Release in Contract

Contract

Material Value

M1 4St 6 000 Euro

- 10% discount

Sold-To Party:

Smith Inc.,

New YorkPartner authorized to

release: Smith & Little, SF

Partner Function SP

Partner

Function AA

Customer

Hierarchy

Normally, both the sold-to party and other business partners are authorized to release from a

contract. This means that the central office for a company can decide which of its branches can

release from a contract. There may also be several ship-to parties. To meet this requirement, maintain the Check partner authorization field in Customizing for the

sales document type. In the sales order, you can then display the partners authorized to release in a

customer list (rule A) or in the customer hierarchy (rule B).

The partner determination procedure assigns the partners authorized to release against the contract.

If there are several partners authorized to release against a contract, you can choose the relevant

partner from a list when you create the release order.

If there are several ship-to parties that are authorized to release for the selected sold-to party, you can

choose the relevant one from a list when you create the release.

So that the releasing partner can be different than the sold-to party for the contract, copying control

uses requirement 002 (different customer to that in header) at header level.





SAP AG 1999

Service contracts consist of header and item data. The Customizing of service contracts comprises the

sales document types, item categories, contract

profiles and billing plan types.

Examples of service contracts include hotline

contracts, maintenance and repair contracts, and

value contracts.

Service Contracts: Unit Summary





Service Contracts: Exercises

Unit: Service Contracts

Topic: Definition of Service Contracts:


• Make the Customizing settings for service contracts

Contracts of different types are drawn up with the customer.

1 Defining a Sales Document Type

Create a new sales document type ZZ##. Copy the sales document type WV for

this.

Description: Contracts group ##

Make the following changes:

Billing plan type: 02 (periodic billing)

Contract data allowed: Y (influenced by contract header data)

Include the new sales document type in copying control.

2 Defining an Item Category

Create a new item category ZZ##. To do this, copy the item category WVN.

Description: Item group ##

Do not make any further changes.

Make the item category assignment. Enter your item category as the default item

category for the following entry:Sales document type ZZ##, item category group LEIS, no item category for the

higher-level item.

It should also be possible to change the item category WVN.





3 Defining a Contract Profile

Create a contract profile ZZ##. To do this, copy the contract profile 0001.

Make the following changes:

Description: 5 year group ## Validity period category: Z5 (5 years)

Action: Mail to person responsible

Assign the contract profile to your sales document type ZZ##.

4 Defining Rules for Determining Dates

Create two new rules for determining dates.

First rule: W1 to W9 for groups 1 -9

X0 to X9 for groups 10 -19

Description: Contract start date + 1 year, group ##

This date should be determined.

Second rule: Y1 to Y9 for groups 1 - 9

Z0 to Z9 for groups 10 - 19

Description: First day of current month, group ##

This date should be determined.

Enter the second rule for determining dates (Y1 – Y9 or Z0 – Z9) as the default for

the contract start date in your contract profile ZZ##.

5 Defining Cancellation Rules and Procedures

Create a cancellation rule ZZ## with the following conditions:

Description: Cancellation rule group ##

Cancellation baseline date: Contract start + 1 year

(Your first date determination rule W1 – W9 or X0 – X9)

Notice period: 1 month before cancellation baseline date

Cancellation period: 1 year





Create a cancellation procedure ZZ##. This procedure should be valid from January

1st of this year until 31.12.9999.

Description: Cancellation procedure, group ##

Assign your cancellation rule to the cancellation procedure.Assign your cancellation procedure to your contract profile.

6 Creating a Contract

Test your settings by creating a service contract with your sales document type

ZZ##.

Sales organization: 1000


Division: 00

Sold-to party: T-CSD##

Purchase order number: SV##

Which dates are proposed for the contract start and contract end?

Material: PR##1

Target quantity: 1

Assign the piece of equipment T-CSE1## to the item.

Save the contract.

Contract number:

7 Canceling a Contract

Change your contract and enter the following cancellation data:

Reason for cancellation: Too expensive

Receipt of cancellation document: Today -1 week

Canceling party: Contract partner

Required cancellation date: Today + 1 week

How does the system respond?

Copy the cancellation date determined by the system.

What is the system response now?

Save the contract.





8 Generating a Follow-up Action

Change your contract. Enter the date for the follow-up action as today + 2 months

and delete the date determination rule for the follow-up action.

Call up the follow-up actions using the following selection criteria:

Contract type: ZZ##


Subsequent processing until: 3 months from today

Valid to: 1 year from today

Generate the follow-up action ‘Mail’ and address the mail to the group working

next to you.

Call up your mail inbox and read the mail that you have received.






Topic: Hotline Service Contract


• List the features of hotline service contracts

Hotline service contracts, in which response and service times are agreed,

are drawn up with the customer.

1 Creating a Hotline Service Contract

Change your service contract and add an item.

Material: HOTLINE_SERVICE_B

Target quantity: 1

Call up the configuration for the item. Can the configuration be changed? Why?

Save the contract.

2 Displaying Characteristics

Display the two characteristics Response strategy (RESPONSE_PROFILE) and

Service profile (SERVICE_WINDOW). To which table fields are these

characteristics linked?





3 Creating a Service Notification with Reference to a Contract

Create a service notification (Notification type: Problem notification).

Short text: Configuration question

Equipment: T-CSE1##Priority: High

Assign the notification to the contract item for the hotline service.

Call up automatic task determination. Which tasks, dates and times are determined?

Why?

Save the notification.

Display the corresponding settings in Customizing.






Topic: Maintenance Contract


• Create maintenance contracts

• Create maintenance plans with reference to the maintenance contract

Contracts, in which regular maintenance tasks are agreed, are drawn up

with the customers.

1 Creating a Maintenance Contract

Change your service contract and add an item.

Material: PR##2

Target quantity: 1

Perform the characteristic valuation:

Scope of maintenance: Maintenance

Wear and tear parts included: Yes

Assign equipment T-CSE1## to the contract item.

Save the contract.

2 Maintaining Service Products for Maintenance Plans Table

Create a new entry in the table Service products for maintenance plans:

Planning plant: 1200

Service product: PR##2

Order type: SM01

Main work center: PC-SERV

Plant: 1200

Business area: 8000

Task list group: 61

Task list group counter: 1

Task list type: A





3 Creating a Maintenance Plan for the Contract Item

Create a maintenance plan with reference to your contract item.

Maintenance plan category: Service order with contract

Planning plant: 1200

Cycle: 3 months

Which cycle start date is proposed in the scheduling parameters?

Which object is specified in the object list for the maintenance item?

Save the maintenance plan. What number is assigned to the maintenance plan?

Schedule your maintenance plan. Start the maintenance plan with proposed date and

save it.

Call up scheduling again and display the order just generated in the maintenance

call overview. Where is the assignment to the contract item displayed in this order?






Topic: Repair Contract


• Create service orders with reference to the repair contract

Contracts, which cover repair work to specific devices, are drawn up with

the customers.

1 Creating a Repair Order with Reference to a Contract

Create a service order with order type SM01 and equipment T-CSE2##.

Short text: Modem defective

Call up the contract selection and assign the order to the contract item for the repair

service (material PR##1).

Release the order and save it.

Your order number:






Topic: Value Contract


• List the features of value contracts

• Create value contracts and contract release orders

Contracts, which define the acceptance of services up to particular value,

are drawn up with the customers.

1 Creating an Assortment Module

Create a value contract assortment module WK##.

Description: Service assortment, group ##

Assign the material numbers SM-REPHOUR and

SM-CONSHOUR to this assortment module.

2 Creating a Value Contract

Create a value contract.Contract type: WK1



Division: 00


Purchase order number: WK##1

Valid from today for 6 months

Target value: 10, 000 EUR

Assortment module: WK##

Which value contract material is proposed? Why?

Save the value contract.

Number of the value contract:





3 Creating a Contract Release Order

Create a contract release order for your value contract.

Order type: OR (standard order)



Division: 00 Choose Create with reference and then Contract and display the contracts for your

releasing partner T-CSD##.

Copy the value contract number determined.

On the following screen, choose Expand assortment .

Enter the order quantity 2 for each of the materials, then choose Back and Copy.

Enter the purchase order number A##1.

How high is the net value of the contract release order?

Save the contract release order.

Number of the contract release order:

Display your value contract.

How high is the released value?

Display the document flow.

4 Releasing the Target Value Completely

Create a second contract release order for your value contract.




Division: 00

Choose To contract and display the contracts for your releasing partner T-CSD##.

Copy the contract number determined.

On the following screen, choose Expand assortment .

Select only material SM-CONSHOUR with a quantity of 80 hours, then choose

Back and Copy.



What happens when you save the contract release order?








5 Creating a Value Contract with Material Reference

Enter a second value contract.

Contract type: WK2



Division: 00


Purchase order number: WK##2

Material: SM-REPHOUR


Material: SM-CONSHOUR


Save the value contract.

Number of the value contract:


Create a contract release order for your value contract.




Division: 00

Choose To contract and display the contracts for your releasing partner T-CSD##.Copy the second contract (order type WK2).


Enter the quantity 12 for the material SM-REPHOUR and the quantity 2 for the

material SM-CONSHOUR .






How does the system respond?




Display the document flow for the first and second value contract items.





Datasheet for Exercise Data

Service Contracts

1. Service contract (purchase order number SV##):

Service notification for the contract:

Maintenance plan for the maintenance contract:

Service order from the maintenance plan:

Service order for the repair order:

1. Value contract:

2. Value contract:

Price Determination

2. Service contract (purchase order number PR##):

Billing request for the service order:

Billing

3. Service contract (purchase order number FP##):

Billing document number from - to:

Credit memo request:

Credit memo:





Service Contracts: Solutions


Topic: Definition of Service Contracts:

1 Defining a Sales Document Type

Access to Customizing:

Menu path: Tools Accelerated SAP Customizing Edit Project

SAP Reference IMG button

IMG menu path: Sales and Distribution Sales Sales Documents Sales

Document Header Define Sales Document Types

Select the sales document type WV and choose Copy as.Field Name or Data Type Values

Sales document type ZZ##

Description Contracts group ##

Billing plan type 02

Contract data allowed Y

Enter

Yes

Save

Continue

2 Defining an Item Category

Sales and Distribution Sales Sales Documents Sales Document Item

Define Item Categories

Select the item category WVN and choose Copy as.


Item category ZZ##

Description Item group ##

Enter

Yes

Save

Continue





Sales and Distribution Sales Sales Documents Sales Document Item

Assign Item Categories

Choose the entry with sales document type ZZ##, item category group LEIS, no

item category for the higher-level item.


Item category default ZZ##

Item category manually WVN

Save

3 Defining a Contract Profile

Sales and Distribution Sales Sales Documents Contracts Contract

Data Define Contract Profiles

Select the contract profile 0001 and choose Copy as.


Contract profile ZZ## Description 5 year group ##

Validity period category Z5

Action 0002

Enter

Save

Sales and Distribution Sales Sales Documents Sales Document Header

Define Sales Document Types Select your sales document type ZZ## and choose Details.


Contract profile ZZ##

Save

4 Defining Rules for Determining Dates

Sales and Distribution Sales Sales Documents Contracts Contract Data Define Rules for Determining Dates

New entries


Rule W1 to W9 for groups 1 -9


Description Contract start date + 1 year,

group ##





Baseline date 02

Time period 1

Time unit 4

Next entry


Rule Y1 to Y9 for groups 1 - 9

Z0 to Z9 for groups 10 - 19

Description First day of current month,

group ##

Baseline date 01

Last of month A

Save



Select your contract profile ZZ## and choose Detail .


Contract start rule Y1 to Y9 or Z0 to Z9

Save

5 Defining Cancellation Rules and Procedures


Data Control Cancellation Define Cancellation Rules

New entries


Cancellation rule ZZ##

Description Cancellation rule group ##

Cancellation date W1 to W9 or X0 to X9

Notice period 1-

Cancellation unit 3

Cancellation period 1

Period unit 4

Save






Data Control Cancellation Define Cancellation Procedures

New entries


Cancellation procedure ZZ##

Valid from 1.1. this yearValid to 31.12.9999

Description Cancellation procedure, group

##

Save


Data Control Cancellation Assign Cancellation Rules and Cancellation

Procedures

New entries



Cancellation rule ZZ##

Save



Select your contract profile ZZ## and choose Detail .Field Name or Data Type Values


Save


Menu path: Logistics Sales and Distribution Sales Contract Create


Contract type ZZ##



Division 00

Enter






Sold-to party T-CSD##

Purchase order number SV##

Enter

The first day of the current month should be proposed as the contract start date, and

the contract start date + 5 years proposed as the contract end date.


Material PR##1

Target quantity 1

Select the item and choose:

Extras Technical objects


Equipment T-CSE1##

Back

Save

Order number: See system message

7 Canceling a Contract

Logistics Sales and Distribution Sales Contract Change


Contract Your contract number

Enter

Goto Header Contract data


Reason for cancellation Too expensive

Receipt of cancellation Today -1 week

Canceling party B

Desired cancellation date Today + 1 week

Enter





The system proposes the next possible cancellation date (contract start date + 1

year).

Yes

The next possible cancellation date is copied as the contract end date.

Enter

Back Save

8 Generating a Follow-up Action




Enter

Goto Header Contract data


Action date Today +2 months

Enter (x 2)

Back

Save

Logistics Sales and Distribution Sales Contract Subsequent

Functions Follow-Up Actions


Contract type ZZ##


Subsequent processing until 3 months from today

Valid to 1 year from today

Enter

Select the line with your contract and choose Follow-up actions.


Document priority Select a priority

Person resp. for all System user name of your

neighbor

Send

Office Work center Inbox Unread documents






Topic: Hotline Service Contract

1 Creating a Hotline Service Contract




Enter


Material HOTLINE_SERVICE_B

Target quantity 1 Enter


Item details for configuration

The configuration cannot be changed because it involves a configured service

product.

Back

Save

2 Displaying Characteristics


Characteristics


Characteristic RESPONSE_PROFILE

Display

Additional data

Choose button Other characteristic (<CTRL> + <F11>)


Characteristic SERVICE_WINDOW

Enter

The characteristics are linked to the table fields for the response and service

profiles.





3 Creating a Service Notification with Reference to a Contract

Logistics Customer Service Service Processing Notification Create

(Special) Problem Notification


Short text Configuration question

Equipment T-CSE1## Priority High

Enter

Select the contract item with material HOTLINE_SERVICE_B and then Choose.

Continue

Determine tasks

Tasks

A task Call back customer was determined with a time interval of 3 hours. This is

the result of the response and service profiles from the configuration of the contract

item.

Save

IMG menu path: Plant Maintenance and Customer Service Maintenance and

Service Processing Maintenance and Service Notifications Notification

Processing Response Time Monitoring Define Response Monitoring






Topic: Maintenance Contract

1 Creating a Maintenance Contract




Enter


Material PR##2

Target quantity 1 Enter


Maintenance scope Maintenance

Wear and tear parts included Yes

Back


Extras Technical objects

Field Name or Data Type Values Equipment T-CSE1##

Back

Save

2 Maintaining Service Products for Maintenance Plans Table

Logistics Customer Service Service Agreements Environment Sales

and Distribution Service Products for Maintenance Plans

New entries


Pl.Pl. 1200

Service product PR##2

Type SM01

Mn.wk.ctr PC-SERV

Plant 1200

BA 8000





Group 61

GrC 1

TLType A

Save

3 Creating a Maintenance Plan for the Contract Item

Logistics Customer Service Service Agreements Maintenance Planning

Maintenance Plans Create For Contract Item


Maint. plan cat. Service order with contract

Sales document Your contract number

Item 30

Planning plant 1200

Enter


Cycle/unit 3 MON

Scheduling parameters for maintenance plan

The contract start date is proposed as the cycle start.

Item object list

The equipment from the contract item is displayed in the object list.

Save

Number of maintenance plan: See system notification

Logistics Customer Service Service Agreements Maintenance Planning

Scheduling for Maintenance Plans Schedule


Maintenance plan Your maintenance plan

number

Enter

Start Continue

Save

Enter

Select the maintenance call and choose Display call object .

The assignment to the service contract is in the Sales document field of the service

order.






Topic: Repair Contract

1 Creating a Repair Order with Reference to a Contract

Logistics Customer Service Service Processing Order Service Order

Create (General)


Order type SM01

Equipment T-CSE2##

Enter


Short text Modem defective

Extras Contract selection

Select the contract item with material PR##1 and then Choose.

Release

Save

Contract number: See system message






Topic: Value Contract

1 Creating an Assortment Module

Logistics Sales and Distribution Master Data Products Value

contract - Assortment module Create


Module WK##

Enter


Description Service assortment, group ##

Material SM-REPHOUR

SM-CONSHOUR

Save

2 Creating a Value Contract

Logistics Sales and Distribution Sales Contract Create


Contract type WK1



Division 00

Enter



Purchase order number WK##1

Valid to Today + 6 months

Target value 10000

Assortment module WK##

Enter

The value contract material WKM1 is proposed based on the Customizing setting

for item category WKN.

Save

Number of value contract: See system notification






Logistics Sales and Distribution Sales Order Create


Order type OR (standard order)



Division 00

Create with reference

Contract


Releasing partner T-CSD##

Contracts

Position the cursor on the line with the value contract and choose Copy.

Copy

Expand assort.


Order quantity 2

2

2

Back

Copy

Field Name or Data Type Values Purchase order number A##1

The net value appears above and to the right.

Save

Number of contract release order: See system notification

Logistics Sales and Distribution Sales Contract Display


Contract Your value contract number Enter

The net value of the contract release order appears in the Released value field.

Document flow





4 Releasing the Target Value Completely



Order type OR (standard order)Sales organization 1000


Division 00


Contract



Contract partner authorized for release Position the cursor on the line with the value contract and choose Copy.

Copy

Expand assortment module


Order quantity for(material

SM-CONSHOUR

80

Back

Copy


Purchase order number A##2

Save

A warning appears that the target value has been exceeded.

Save




Contract Your value contract number

Enter

The value released is now greater than the target value.





5 Creating a Value Contract with Material Reference



Contract type WK2Sales organization 1000


Division 00

Enter



Purchase order number WK##2

Material SM-REPHOURTarget value 1000

Material SM-CONSHOUR

Target value 1000

Save

Number of value contract: See system notification




Order type OR (standard order)



Division 00


Contract



Contract partner authorized for release

Position the cursor on the line with the second value contract and choose Copy.

Copy






Purchase order number A##3

Order quantity (material SM-

REPHOUR)

12

Order quantity (material SM-CONSHOUR)

2

Save

A warning message appears stating that the target value has been exceeded.

Save




Contract Your value contract number

Enter

The value released for the first item is now greater than the target value.

Select an item and choose Document flow.





SAP AG 1999

Overview and terms

Variant conditions

Price agreements in contracts

Price Determination





SAP AG 1999


List the most important elements in pricedetermination

Create variant conditions

Add price agreements to contracts

Price Determination: Unit Objectives





SAP AG 1999

BillingBilling












SAP AG 1999

Prices are defined for contractually agreed

services. These prices are determined in the service

contract.

They can be dependent on the individual featuresof the service.

Price agreements can also be made in contractsthat become effective for resource-related billing.

Price Determination: Business Scenario





SAP AG 1999

Overview and Terms: Topic Objectives

Describe the process of price determination

Describe the different elements of pricedetermination






SAP AG 1999

Price Determination - Overview

Pricing procedures

1. Price PPSV

2. Discount 1

3. Discount 2 RA01

Contract

Item 10 10 LE

Condition type: PPSV

Access sequence: PPSV

Access sequence: PPSV

Condition tables:1. Customer / material2. Price list / currency / material

3. Material

No valid record existsValid record exists

Records for condition type PPSV

PPSV Price $ 99

KA00 Discount 1 - $

RA01 Discount 2 - %

From 1 LE $ 100From 10 LE $ 99From 20 LE $ 98

Price determination in the sales document works according to the following procedure:

The individual condition types, such as prices, surcharges, discounts and taxes, are located in the

pricing procedure, which is valid for the whole sales document. An access sequence to find condition records is defined for each condition type.

Each access is stored in a condition table.

The first condition record found in the access sequence is copied.

This example involves a price with a quantity scale.

This process is run for each condition type in the pricing procedure until the entire price

determination is completed.





SAP AG 1999

1st1st periodperiod01/0301/03 -- 30/0430/04

$ 1000 1.0 - %

$ 2000 2.0 - %$ 3000 3.2 - %

Upper limit: 5.0 - %Lower limit: 0.0 - %

Condition type: KA00 Special offer discount



Customer: C1

Material: M1

2nd2nd periodperiod01/0501/05 -- 31/0531/05

$ 1000 1.5 - %

$ 2000 2.5 - %$ 3000 4.0 - %

Upper limit: 6.0 - %Lower limit: 0.0 - %

Level at whichthe conditionis defined

Condition Records

By entering a validity period, a price agreement can be restricted to a specific period of time.

Example: Yearly-based price list

Discounts within a special offer period The values within a condition record (price, surcharge, discount) can be maintained based on a scale.

There is no limit on the number of scale levels.

For each condition record, upper and lower limits can be defined. These define the limits within

which a pricing element found automatically can be changed manually.





SAP AG 2003

Condition Tables

Sales organization

Distribution channel

Material Text Calc. type Amount ...

M1

1000

10

Create price (PR00): X

Material

IMGIMG

...

...

...

Cond. tables004 Material

005 Customer/material.....

Sales organizationDistrChannel

Material

Key Line

Condition records are always created using a specific key.

Use tables for help in defining the structure of condition record keys.

The most important fields used in pricing at header and item level are available in the standardsystem.

As of SAP R/3 Release 4.5, you can also add non-key fields to the condition tables. This is the case,

for example, in condition table 144, which is used within the price book (condition type PBUD).

The key fields of a condition table must appear at the start of the table, in other words, non-key fields

must not appear between any two key fields.





SAP AG 1999

Large customer discountLarge customer discountLarge customer discount

Access Sequence

PPSVPPSV

Discount %Discount %

Special

General

Condition type

Accesssequence

PricePriceAccess sequence PPSV

Access sequence K007

1. Customer / material

2. Price list / currency / material

3. Material

1. Customer / material

2. Price list / currency / material

3. Material

K007K007

K020K020 Access sequence K020

PPSVPPSV

Condition tables

A search strategy (= access sequence) is defined for each condition type within the pricing

procedure.

This search strategy defines the sequence in which condition records for a condition type should beread.

Each access in the access sequence consists of a condition table.

The condition table is a combination of fields that form the key for a condition record.

An access can be made dependent on requirements.





SAP AG 1999

Key Description Control

Scale basis Calculation type

100 UNI1000 UNI

10000 UNI

1.0 - %1.5 - %2.0 - %

Examples

PricePricePPSVPPSV

Discount %Discount %K007K007

AbsoluteAbsolute

discountdiscountRB00RB00

Calculation type: PercentualScale basis: Value scale

Calculation type: Fixed amountNo scale

Condition Types

The different usage and the category of a condition are defined using the condition type.

The calculation type for determining the condition amount and the scale basis for specifiying scales

is controlled for each condition type. The prices for contracts mostly have the calculation types "Quantity-based - Monthly price" or

"Quantity-based - Yearly price".

For each condition type, you can control whether it should automatically be a surcharge or discount.





SAP AG 1999

Pricing Procedure

StepStep Condition typeCondition type DescriptionDescription Reference stepReference step ManuallyManually RequirementRequirement

1

2

3

4

5

6

7

PriceGross valueSpecial offer Discount %Discount %Discount valueNet value

PPSV

KA00

RA01

RA00

2

3-5

X

2

2

2

2

8

9

10

MWST

SKTO

Output taxDiscount baseCash discount

Sales documentSales document Sold-to partySold-to partyPricing procedurePricing procedure

Sales organization, distribution channel, divisionSales organization, distribution channel, division

All condition types possible for a sales document type in the price determination are defined in the

pricing procedure.

Requirements, by which the individual condition should be considered, can also be entered there.Examples:

Requirement 2: Item with price determination

Requirement 32: No tax exemption licence available

Requirement 9: Cash discount after tax

Here, the sequence in which the conditions are applied to the sales document is also defined.

The reference level enables you to define an alternative base for calaculating the condition value and

for combining the conditions for subtotals.

The pricing procedure makes it possible to have any number of subtotals between gross price and

net price.

In the pricing procedure, a condition type can be indicated as:

Obligatory condition

Manually entered condition

Statistical condition





SAP AG 1999

Overview: Setting for Price Determination

1. Condition table1. Condition table 2. Access sequence2. Access sequence

3. Condition type3. Condition type

4. Pricing procedure4. Pricing procedure

5. Schema determination5. Schema determination

Material

Customer/material...

Material

Customer/material...

Price

Customer discountMaterial

Price

Customer discountMaterial

1. Customer/material2. Material

PriceMaterial discount

PriceMaterial discount

StandardFree of charge..

.

StandardFree of charge...

Sales org.0001

Sales org.0001

D-Channel01

D-Channel01

Division01

Division01

Sales doc.A

Sales doc.A

Customer 1

Customer 1 StandardStandard

1. Price2. Material discount

The condition tables contain the keys, based upon which condition records can be created. You can

add your own condition tables.

An access sequence comprises one or more condition tables.

Each condition required is created as a condition type and assigned to an access sequence.

In the pricing procedure, the condition types are combined in the required sequence.

The pricing procedure is determined based on the sales area, sales document type ("Document

pricing procedure" field) and the customer master ("Customer pricing procedure" field).





SAP AG 1999

Variant Conditions: Topic Objectives

Create variant conditions






SAP AG 1999

Characteristic

Object

Strategy

Site

Distance

Value

Printer

Monthly

At customer

< 1000 km

Basic price 300

Conditions

Surcharge 350

Surcharge 100

Surcharge 300

Surcharge 50Total 1,100

per month

Item 10Inspection service

Variant Conditions

Contract

In the contract item, a configurable material is entered, for which a basic price of $ 300 is defined.

The individual features of the service are described in the characteristic valuation.

For each characteristic value, a variant condition is defined and added as an absolute surcharge tothe basic price. Alternatively, the total price can also be calculated as a variant price.

The result of price determination is a contract sum for the described service in a specific time period.





SAP AG 1999

Configuring Variant Conditions - Variant I

Call up the configuration simulation.

Assign the keys to the characteristicvalues.

Create descriptions for the keys.

Create condition records for the keys.

In the configuration simulation, it is possible to assign any key for the respective variant to each

characteristic value in the search help for the characteristic values.

In the "Define keys" function, you can assign descriptions to these keys.

You can create condition records for the variants with reference to these keys for all condition

types, whose access sequence contains the "Variant" field. The condition records contain the price-

relevant data (for example, the value of a particular surcharge).

In the standard system, condition types VA00 and VA01 are provided especially for variant price

determination.

This procedure is advisable if a unique relationship exists between the characteristic value and the

condition rate.





SAP AG 2001

Create a characteristic with referenceto the field SDCOM-VKOND

Create object dependencies(procedures) to determine thecharacteristic values

Assign object dependencies

Create condition records for the keys

Configuring Variant Conditions - Variant II

You first create a characteristic (for example, proposal) in the classification system that is only used

for price determination. This characteristic must not belong to the variant class of the material. It is

used during processing to generate data about price-relevant variants. The reference of thecharacteristic to the field SDCOM-VKOND in the additional data for the characteristic guarantees

that the condition records are generated.

You must create an object dependency for each price-relevant variant. The object dependency is

required so that the variants for the condition records (= characteristic values for the characteristic

created here) are determined based on the characteristic values entered in the configuration.

Syntax for a procedure:

$SELF.SURCHARGE = Key field of condition record IF Characteristic name EQ ‘Characteristic

value’

Example:

$SELF.SURCHARGE = ‘PRINTER’ IF OBJECT EQ ‘PRINTER’





SAP AG 1999

Price Agreements: Topic Objectives

Create price agreements for the contract

Describe the effects of price agreements






SAP AG 1999

Service Contract - Price Agreements

$10$0

Price agreements are contract-specific prices,discounts or deductions.

They can be assigned to the contract header orcontract item.

They are considered for resource-related billingof service orders that are assigned to thecontract.

Price agreements determine which services are covered wholly, partially, or not at all by the

contract.

For example, a price agreement can define that all spare parts are free of charge, and that theinstallation of spare parts is to be invoiced at the rate of $25 per hour.

If you perform service orders with reference to the contract, the system takes these price agreements

into account in resource-related billing. The system also displays the conditions from the price

agreements during pricing for the billing request.

This means that the customer is only billed for those expenses that are not covered by the contract.





SAP AG 1999

Header priceagreements

Item priceagreements

Resource-relatedbilling

Consideration of

price agreements

Service order withcontract reference

Item 10Repair service

Price Agreements - Resource-Related Billing

Contractual price agreements take effect if billing for a service order with a contract reference is

resource-related.

The price agreements are considered if they belong to the contract header or the contract item towhich the service order was assigned.

You can use condition types with interval scales if the price reduction or discount is only guaranteed

up to a certain amount (or number of hours worked). Example: In the repair contract, the first five

hours of work by each technician are free of charge.

You can use conditions with the indicator Condition update, if the guaranteed discount should not

exceed a maximum amount. This indicator ensures that the discount already guaranteed is updated

for the price agreement. Example: Each year, spare parts up to a value of $ 1,000 are free.

Price agreements have no effect on periodic contract billing. The amounts charged for periodic

contract billing result exclusively from the header and item conditions of the contract.





SAP AG 1999

Conditions in billing request

Item 10 Material: Repair hour Quantity: 10 h

Condition type

EK01

PR00

PPAR

MWST

Description

Actual costs

Price

Price by agreement

Gross amount

Output tax

Final amount

Amount

75

150

50

16%

Value

750

1,500

500

500

80

580

Fromcontractual

priceagreement

Price Agreements in Billing Request

Owing to the sequence of conditions in the pricing procedure for resource-related billing, the price

from the price agreement has a higher priority than the standard price.





SAP AG 1999

The control elements for price determination are

the condition tables, access sequences, conditiontypes and pricing procedures.

Using variant conditions, pricing can be performedbased on characteristic values.

In contractual price agreements, conditions can bedefined that are considered for resource-relatedbilling of service orders with a contract reference.

Price Determination: Unit Summary





Price Determination: Exercises

Unit: Price Determination

Topic: Overview and Terms


• List the different elements of price determination

• Create new condition types

Different conditions are valid for services.

1 Analyzing Price Determination

Change your first service contract (purchase order number SV##).

Call up the condition detail screen for the first item and add a manual discount ofcondition type RA01.

Call up the price determination log.

2 Creating an Access Sequence

Copy the access sequence PR00 with all dependent entries and create the accesssequence ZZ## as the access sequence relevant for pricing.

Delete all accesses apart from Customer/Material and Material and all their entries.

Create a change order.

3 Creating a Condition Type

Create a condition type ZJ##. To do this, copy the condition type PPSV. Make thefollowing changes:

Condition type: ZJ## annual price, group ##

Access sequence: ZZ##

Calculation type: Quantity-based – Annual price

Scale basis: Time period scale – Years





4 Creating and Assigning a Pricing Procedure

Create a pricing procedure ZZ##. To do this, copy the pricing procedure PSER01 with all dependent entries.

Call the pricing procedure control and copy the row with the condition type PPSV.Create step 30 with the condition type ZZ##.

Create a new document determination procedure with the following key:

Groups 1 – 9: Group number

Group 10: 0

The remaining groups should choose a letter that has not been used.

Your document determination procedure:

Assign your sales document type ZZ## to your new document determination procedure.

Your new pricing procedure ZZ## should be determined for this documentdetermination procedure in sales organization 1000, distribution channel 14,division 00, customer pricing procedure 1.

5 Creating Condition Records

Create two prices with the new condition type ZZ##.

One price should be valid for the key combination Customer T-CSD## / MaterialPR##3 and one should only be valid for material PR##3.




Test your definitions by creating a new service contract using your contract typeZZ##.



Division: 00


Purchase order number: PR##

Material: PR##3

Target quantity: 1

Display the conditions and condition analysis for the contract item.

Save the contract.






Topic: Variant Conditions


• Create variant conditions

Different conditions are valid depending on the individual features of theservice products.

1 Assigning a Variant Key

Call up the configuration simulation.

Plant: 1200

Material: PR##2

Assign the following variant keys in the characteristic valuation:

For characteristic Maintenance scope for characteristic value Maintenance:Variant key WA##

For characteristic Maintenance scope for characteristic value Inspection: Variantkey IN##

For characteristic Wear and tear parts included for characteristic value Yes:Variant key VT##

Save the variant keys.

Call up the function Define keys and create descriptions for your variant keys.Check carefully that capitalization/use of small letters is correct here.


Create condition records for the variant keys in your material PR##2.

Condition type: VA00



Enter rates for these variants. Check carefully that capitalization/use of small lettersis correct here.





3 Using Variant Conditions

Test the variant conditions by extending the contract from the previous section andadding a new item.

Material: PR##2

Target quantity: 1

Assign values to the characteristics and note the price changes that occur.

Save the contract.






Topic: Price Agreements


• Assign price agreements to the contract

• Describe the effects of price agreements

Price agreements for particular services are drawn up with the customerin contracts.

1 Assigning Price Agreements

Assign price agreements to your maintenance and repair contract with purchaseorder number SV##.

Header price agreement:

Condition type: PKAR

Material: SM-REPHOUR

Enter an amount.

Price agreement for second item:

Condition type: ZZWV

Material group: Spare parts

Enter a percentage amount for the discount.

Save the price agreements and service contract.





2 Confirming a Service Order and Creating a Billing Request

Confirm the service order created for the Repair Contract topic. Use the Overall

completion confirmation function.

Enter an actual working time and an unplanned goods issue for the material R-1120

(plant 1200, storage location 0001).

Create a billing request for this order.

Select the sales price view and display the item conditions.

What effects do the contractual price agreements have?

Create the billing request.

Billing request number:

Delete the billing block and save the billing request.





Price Determination: Solutions


Topic: Overview and Terms

1 Analyzing Price Determination

Menu path: Logistics Sales and Distribution Sales Contract→ Change



Enter

Select the first item and choose Item conditions.


Condition type RA01

Amount 10-

Enter

Analysis

2 Creating an Access Sequence

IMG menu path: Sales and Distribution Basic Functions Pricing

Pricing Control Define Access Sequences

Maintain Access Sequences

Select the access sequence PR00 and choose Copy as.


AcSq ZZ##

Description Enter a description

Enter

Copy all

Enter

Select your access sequence and choose Accesses.

Select all accesses apart from Customer/Material and Material and choose Delete.

All entries

Enter

Save





Create order

Save

Continue

3 Creating a Condition Type

Sales and Distribution Basic Functions Pricing Pricing Control

Define Condition Types

Maintain Condition Types

Select the condition type PPSV and choose Copy as.


Condition type ZJ##

Description Annual price ##

Access seq. ZZ##

Calculat. Type N

Scale basis N

Enter

Save

4 Creating and Assigning a Pricing Procedure

Sales and Distribution Basic Functions Pricing Pricing Control Define and Assign Pricing Procedures

Maintain Pricing Procedures

Select the pricing procedure PSER01 and choose Copy as.


Proc. ZZ##


Enter

Copy all

Enter

Select your pricing procedure and choose Control .

Select the row with condition type PPSV and choose Copy as.


Step 30

Condition type ZJ##

Enter





Save

Back (x 2)

Define Document Pricing Procedures

New entries


DoPr 0 – 9 or available letter


Save

Back (2x)

Assign Document Pricing Procedures to Order Types


DoPr (for sales document type ZZ##)

Your document pricing procedure

Save

Back

Define Pricing Procedure Determination

New entries


SOrg. 1000

DChl 14

Dv 00

DoPr Your document pricing

procedure

CuPP 1

PriPr. ZZ##

Save






Menu path: Sales and Distribution Master Data Conditions Select Using

Condition Type→ Create


Condition type ZJ##

Enter

Select the key combination Customer/material and then Choose.




Customer T-CSD##

Material PR##3

Amount Enter an amount

Save

Back

Key combination

Select the key combination Material and then Choose.




Material PR##3


Save




Contract type ZZ##



Division 00

Enter







Purchase order number PR##

Material PR##3

Target quantity 1

Enter

Select the contract item and choose Item conditions.

Analysis

Back

Save






Topic: Variant Conditions

1 Assigning a Variant Key

Menu path: Logistics Central Functions Variant Configuration

Environment→ Configuration Simulation


Plant 1200

Enter


Material PR##2

Configuration

Call up the search help for the Maintenance scope characteristic.

Select the characteristic value Maintenance and choose Assign variant condition.

Enter the variant key WA## and choose Save.

Carry out the same process for the characteristics Inspection (variant key IN##)and Wear and tear parts included (variant key VT##).

Menu path: Logistics Central Functions Variant Configuration

Environment Pricing→ Define Key New entries


Variant WA##


Variant IN##


Variant VT##

Description Enter a descriptionSave






Menu path: Logistics → Sales and Distribution Master Data Conditions

Select Using Condition Type→ Create


Condition type VA00

Enter




Material PR##2

Variant WA##

IN##

VT##


Save

3 Using Variant Conditions




Enter


Material PR##2

Target quantity 1

Enter

Select characteristic values and choose Back .

Select the item and choose Item conditions.

The variant proposals determined appear here.

Save






Topic: Price Agreements

1 Assigning Price Agreements



Contract Your first contract number

Enter

Extras Price agreements Header

Other condition type

Field Name or Data Type ValuesCondition type PKAR

Enter


Material SM-REPHOUR


Save

Select the first contract item and choose Price agreements.Other condition type


Condition type ZZWV

Enter


Material group 02

Amount Enter a percentage

Save Save





2 Confirming a Service Order and Creating a Billing Request

Logistics Customer Service Service Processing Confirmation Entry

Overall Completion Confirmation


Order Your order number

Enter


Act. Work Enter an actual work time

Material R-1120

Quantity 1

Plant 1200

Stor. loc. 0001

Save

Logistics Customer Service Service Processing Completion Create

Billing Request Process Individually


Service order Your order number

Sales price view

Expand all nodes

You can double click on an item line to display the condition screen. The conditionsfrom the contractual price agreements appear here.

Save billing request

Yes


Billing block Delete

Save





SAP AG 1999

Billing plan

Periodic contract billing

Resource-related billing

Credit memos and invoice corrections

Billing





SAP AG 1999


List the Customizing settings for billing plans

Bill a contract periodically

Describe the principle of resource-related billing

Create credit memos for a contract

Billing: Unit Objectives





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BillingBilling












SAP AG 1999

The contract fees are charged to the customer atregular intervals.

Service orders, which are executed within the

contract, are also charged, fully or in part,

depending on costs.

In certain cases, contract fees must be credited

again to the customer.

Billing: Business Scenario





SAP AG 1999

Billing Plan: Topic Objectives

Describe the features of billing plans

Create billing plan types






SAP AG 1999

Billing Plan Types

Time

Time

Periodic billing

Billing dates at regular intervals

Same amount is billed for each date

Examples: Rent, preventive maintenance

Milestone billing

Apportionment of total amount into partial bills

and final invoice

Different amounts for each date

Examples: Construction, real estate

A billing plan is a schedule with individual billing dates for a specific item in a sales document. At

header level, it is possible to define a billing plan that is valid for all the items assigned to it. The

information from the billing plan header is copied to the assigned items and can no longer bechanged there.

Periodic billing means that the total value to be billed is invoiced periodically by date.

Milestone billing means that the total value to be billed is apportioned to the individual dates in the

billing plan.

When the sales document is created, the system defines, depending on the item category, whether a

billing plan is necessary, and if yes, which billing plan type is used: A periodic billing plan or a

milestone billing plan. The billing plan generated at this time is defined in Customizing, and can no

longer be changed during processing.





SAP AG 2002

Periodic Billing

Billing date Description Value Billing status

April 30 Rental contract EUR 100 CMay 31 EUR 100

June 30 EUR 100July 31 EUR 100

Billing plan 100Billing plan 100

Item 10 copier EUR 100

Sales order 4712Sales order 4712

Start: April 30End:Period: monthlyHorizon: 4 PeriodsBilling date: Month end

DatesDates

Periodic adjustment of dates up to horizonPeriodic adjustment of dates up to horizon

August 31 EUR 100

Contract dataInstallation data

End of contract

Contract dataInstallation data

End of contract

Periodic billing can be used, for example, for transactions involving rental contracts.

The contract data stored in the system can then be used as the basis for creating the billing plan.

The start and end dates define the duration of the billing plan. If possible, they are taken from thecontract data. You may decide not to set an end date (if the duration is unlimited). In this case, new

dates can be extended to the horizon (the horizon specifies the number of settlement periods that are

set in the billing plan).

You can create new dates either directly in the billing plan, or using the report RVFPLA01. You

should schedule the report to run at regular intervals, since new dates are not formed automatically

when individual settlement periods are billed.

You can use the billing dates to determine when and how often billing is carried out, for example, on

the first day or the last day of every month.





SAP AG 1999

Service Contract - Billing Plan

Start

date

Months

Current

date

Horizon

Settlement

Processed

billing

dates

Unprocessed

billing dates

End

date

The billing plan contains the following information:

Start and end dates for billing with date determination rules. This enables the start date to be

derived from the contract start, the installation, or the acceptance date. Billing rule: Billing dates are determined using this rule. In the example: Monthly billing on the last

day of the month.

Horizon with determination rule: Period of time for which billing dates are generated, based on the

current date. In the example: Current date + 6 months.

Settlement periods: These are calculated using the start and end dates, together with the billing rule.

In the example, the first and last calendar months of the billing period are billed proportionally.

Individual billing dates for each billing period. Each billing date has a billing status (“Processed" =

settled, or “Not yet processed" = not yet settled).





SAP AG 1999

Functions in the Billing Plan - Periodic Billing

Time

Automatic creation of billing plan dates

Price determination

Billing block

Billing index

Billing status

Document flow

Automatic creation of billing plan dates: The system can determine the billing plan dates from the

general schedule data, and set them automatically in the billing plan.

Price determination: Sales document items are billed for the due date. The system determines theamounts to be billed from the condition records for the items.

Billing block : A billing block can be set in a billing plan for each date. The billing block prevents

billing for a certain date, without other billing dates for the plan being affected.

Billing index: A billing index is set up and updated by the system for each date for a billing plan. If

the date is blocked by a billing block, this information is copied into the index.

Billing status: A billing status is defined in the billing plan for each date. The billing status displays

how much an item has been processed during billing. After billing, the billing status is set

automatically to C . This prevents a billed date from being billed again.

Document flow: After the billing of a date, the document flow of the sales document items involved

is extended by the display of the dates billed.





SAP AG 1999

Contract

Item billing plan

Header Billing Plan

Item 10

Item 20

Item 30

Header

billing plan

Item billing plan

Item billing plan

Assignment

No

assignment

A header billing plan is generated by the assignment of a billing plan type in the Customizing for

the sales document type.

Automatic attachment of the item billing plans to the header billing plan: All the items with thesame billing plan type refer to the header billing plan. The assignment between item billing plan and

header billing plan is displayed on the item billing plan screen using a selection. If internal billing

plans are to be defined for specific items, this assignment to the header can be removed, and the item

billing plan can be maintained separately.

Copying the header billing plan to the item billing plans: Global changes at header level are passed

on to the assigned item billing plans. Dates already billed can no longer be changed. For periodic

billing, the price determination, determination of billing value, and status determination are

performed at item level, independently of the header.





SAP AG 1999

Header Billing Plan for Periodic Billing

Item billing plan

Item 10

Item 20

Header billing plan

Item billing plan

Assignment

• Dates

• No values

• No status info

Dates

Contract

For periodic billing, the following functions are performed exclusively at item level: Price

determination, status determination, definition‚ dates from / dates to.

Therefore, no billing values or status appear in the header billing plan.

Runtime changes:

The start and end dates determine the runtime for billing, and are copied into the item billing

plans. For changes to the rule or manually entered runtime at header level, the new dates are

copied at item level.

To maintain alternative dates at item level, the following steps must be taken: In the item billing

plan, a runtime is specified manually in the fields 'Dates from' and 'Dates to'. In this case, the

system deletes the accompanying rule and uses the manually specified dates for the fields 'Dates

from' and 'Dates to' to determine the billing dates. Even for changes to the header billing dates, the

dates determined in this way are kept at item level. Only if the date entered manually in the fields

'Dates from' or 'Dates to' is deleted again does the rule for the header billing plan take priority:

The dates are then determined in the same way as the rule for the header billing plan.





SAP AG 1999

Billing Plan Type - Customizing

Origin of general data

Proposal of start and end dates according to datedetermination rule

Horizon and basic dates for generating billing dates

Billing data: Proposal of dates

Rules for determining billing dates

Control data generates dates

Automatically by maintaining the billing plan

Billing in advance

Function code for overview screen

of billing plan

The billing plan type contains the basic control data for the billing plan. It is displayed in the billing

plan, but cannot be changed there.

In the standard system, a billing plan type is configured for milestone billing and periodic billing.

The start and end dates are proposed for the billing plan based on the date determination rules

defined.

The horizon starts from the current date and specifies the last date, up to which dates should be set.

The entries 'Dates from' and 'Dates to' control the period of time for which billing dates are generated

within the billing plan.

Date determination rules are used to control the origin of the billing dates and, if necessary,

alternative billing dates.

You use the entry 'Generate Dates Online Order' to control whether the billing dates are

determined automatically and set in the billing plan, or whether they must be entered manually.

The indicator 'Billing in advance' controls whether billing should occur retrospectively, or in

advance, for the settlement period.

The function code controls the structure of the overview screen for the billing plan.





SAP AG 1999

Periodic Contract Billing: Topic Objectives

List the options for contract billing

Bill contracts periodically






SAP AG 2002

PostingPosting

blockblock

PartnersPartnersNumberNumber

assignmentassignment

CancellationCancellation

billing typebilling type

Invoice listInvoice list

typetype

AccountAccount

determinationdetermination

TextsTexts

OutputOutput

RebatesRebates

Special featuresSpecial features

of theof the FI interfaceFI interface

Billing Type Controls

Billing typeBilling type

You can create new billing types or redefine existing ones in the standard R/3 System to meet the

requirements of your company installation.

Many of the control parameters in the billing type influence further processing in FinancialAccounting (posting block, account determination).

As of Release 4.0, new fields have been included in the billing type, representing special features of

the SD/FI interface, such as document type, negative posting, branch/head office, and value dated

credit memos (see the unit on Special Features of the SD/FI Interface).

As of Release 4.6B, you can use the report SDCHECKVOFA to check various settings within billing

types for accuracy and consistency.

(Note: This report does not perform a complete check of all settings. You can find information about

it in the relevant report documentation).





SAP AG 2003

Billing On Request

Delivery 3Invoice

InvoiceDelivery 2

Delivery 1

Contract 1

Contract 2Contract 3

Contract 1

Contract 2Contract 3

You can specify explicitly which transactions are to be billed by entering the document numbers

manually (order number or delivery note number, depending on whether you want to carry out order-

related or delivery-related billing). If a billing document cannot be created, due to a billing block, for example, the system will issue an

error log.

As of Release 4.5, you can also select individual items or partial quantities of items to be billed when

billing deliveries or orders. To do this you have to choose the Item selection function in billing.

Note:

In delivery-related billing, you can only change the item quantities for item categories that have

billing relevance K .





SAP AG 2003

Processing Billing Due Lists

Sold-to party: C1

to: May 15

Log

Date Sold-to

party

doc

May 12

May 12

May 14

May 15

May 17

C1

C1

C2

C1

C1

1

2

3

4

5

Date Sold-to

party

doc

May 12

May 12

May 15

C1

C1

C1

1

2

4

Invoice

Invoice

11 22

You will not usually bill transactions individually. You are far more likely to carry out periodic

collective billing runs (by goods issue posting, for example).

If you are working with the billing due list, enter the selection criteria (such as sold-to party, billingdate, and destination country). The system uses the selection criteria as a basis for combining the

transactions to be billed.

When selecting, you can also decide whether the billing due list should only contain documents that

are order-related, delivery-related, or both.

The graphic above displays a case in which creation of billing documents is restricted to those

documents that were delivered before May 15 for sold-to party C1. Based on this selection, the

system creates the billing due list and creates billing documents on the basis of this list.

After saving, you can display the log to determine which billing documents were created from a

billing due list and whether any errors occurred.

You can process the billing due list in simulation mode. The system displays the billing documents

without saving the documents. Transactions containing errors are indicated with the corresponding

processing status.

As of Release 4.5, further selection data (sales document number, distribution channel, division, andshipping point) and new ways of processing are available when processing the billing due list. The

information provided in the error log has also been extended.





SAP AG 2002

Billing in the Background

Log

Billing doc.

Billing doc.


Start background job on

Monday at 2 am 02:00

Zzzz...

Wednesday, 10 am

Monday, 2 am

Billing due listBilling due list

You may decide to create invoices using a background job because it is practical and efficient. You

can run the background job automatically in the following ways:

- Periodically (for example, every Monday at 2 a.m.)- At a specific time (for example, June 19 at 8 p.m.)

The system can divide the billing due list into multiple background jobs and start them

simultaneously. In this way, you can make better use of your hardware by operating more than one

processor.

If you do not require a log or a detailed list, SAP recommends that you do not select these options in

the selection screen. This will improve performance considerably.





SAP AG 1999

Collective Billing Document

Invoice

Order

Order Outb. delivery

Order

Outb. delivery

Outb. delivery

Outb. delivery

As a rule, the system attempts to combine all compatible transactions into a single billing document.

In the SAP R/3 System, it is possible to include both order-related and delivery-related items in the

same billing document.





SAP AG 2001

Revenue Realization

Service order with billing plan

Billing

documentSettlement period:

1.1.2001 - 31.12.2001

12.000.-

Billing in advance

Debtor

12,000

Accrued revenues

12,000

1.1.2001

12,000

Revenue realization

Jan 2001 Revenue

1,000

Contract

Accrued revenues

1,000 12,000

Billing

You can use the revenue realization functionality to accrue revenues periodically, thereby

separating revenue realization from the billing process. This means that revenues are realized in the

posting period in which the service was performed - not in the posting period in which the billingdocument was created.

Time-based revenue realization is available for service contracts. This enables you to realize

revenues over a particular period of time. Revenue is realized in equal amounts between specific

start and end dates. You use the item category at item level in the sales document to define the

start/end dates, and the procedure for revenue realization. You can use the financial calendar from

the company code that is assigned to the document to determine the number of periods that fall

between these dates. You can use time-based revenue realization for one-time billing items,

periodical billing plans, and milestone billing plans. Contracts and billing documents can serve as a

reference for time-based revenue realization.

When you perform billing for contracts, you post to the account for revenues that have not yet been

realized, not the account for realized revenues.

For each period you can use the function Edit Revenue List to perform transfers from the account for

unrealized revenues to the account for realized revenues.





SAP AG 1999

Resource-Related Billing: Topic Objectives

Describe the options for resource-related billing

with reference to a contract

Perform resource-related billing for service orders






SAP AG 1999

Resource-Related Billing

Serviceorder

Billing

request

Create

billing

document

Dynamic

items

Create billing request

• Generate dynamic items

• Create billing request

Billing

document

1

Company

Invoice

x y

2

During billing, the system generates dynamic items from the information about the expenses

involved (for example, costs for material and personnel). Before a billing request is created, you see

a modifiable overview screen that enables you to determine what the billing request should look like,and which amounts should be calculated, postponed, or canceled. You generate the billing request

from this overview screen.

You can work on this screen, for example, to simulate prices or save the dynamic items.

There are two summarization levels:

First level: The system summaizes the data records for the overview screen of the dynamic items.

Second level: The system generates a billing request using the data from the dynamic items. If

necessary, the system summairzes the data again. Summarization depends on the settings in the

dynamic item processor profile.

The billing request is a special form of sales order and forms the basis of the billing document. Each

item in the billing request has a material number that is determined by a material determination

procedure defined using the dynamic item processor profile.

You can create a billing request using single or collective processing. The functions "Create billing

document", "Process billing due list", and "Batch billing" are available to you for creating billingdocuments.





SAP AG 2003

Dynamic Item Processor

Source data Dynamic

items

Billing request/

quotation

Flexible tool to create dynamic items

Use:


Flat-rate billing document with list of the actual effort

Resource-related creation of quotations

Flat-rate quotation with list of the planned effort

Control using dynamic item processor profile (DIP profile)

The dynamic item processor is a tool that the system uses to summarize data on dynamic items

during resource-related quotation creation and billing (for example, line items that arise through the

posting of goods movements, completion confirmations or surcharges). The Dynamic Item Processor profile (DIP profile) controls how the system summarizes data on dynamic items. You can use the

DIP profile for creating quotations and billing (both resource-related and flat-rate).

Assignment to the DIP profile is performed in the service order header or in the sales document. You

can enter the default profile when making customizing settings for service order types or sales

document item types.

The following customer exits are available:

AD010001 (Change the object list and its hierarchy)

AD010002 (restrict the selection and /or filter data determined)

AD010003 (Create user-defined DI characteristics)

AD010005 (Create user-defined sources)

AD010007 (Change DI processing information)

V46H0001 (fill item fields and create additional item partners)

The following new transactions exist in Release SAP R/3 Enterprise: Collective processing: DP96 (for sales orders), DP97 (for service contracts)

Document flow evaluations: DP99A, DP99B (for the order), DP98 (for billing request)

SAP note 301117 contains extended documentation on the dynamic item processor.





SAP AG 2003

DIP Profile

Material determination

Use

Sources

Selection criteria

Characteristics

Selection criteriaSelection criteria

ProfileProfile

Quotations or billing

Types of sales documents, warranty check, errors in

material determination

What fields are relevant?

Summarization based on characteristics

Presentation in the overview screen

How are dynamic items determined?

For which characteristic values are

items created?

How are material numbers determined? Transfer quantity/cost


material numbers found?

You can use the DIP profile to create quotations as well as for billing purposes. You decide on the type of salesdocuments that are to be generated (quotation, billing request and credit memo request) per usage. In addition,

you can determine if the system should perform a guarantee check during billing. The indicator DI with

material determines how dynamic items without material are processed: If the indicator has not been set(default), an error message occurs when a dynamic item that cannot be assigned to a material is being

processed. If the indicator has been set, then only those dynamic items that could be assigned to a material are processed. All other data should be entered when you are creating a document.

Characteristics relevant to the determination of dynamic items are fixed for each use. The following indicators

are available for each characteristic:

Relevant to characteristic: If you set this indicator, the characteristic is read from the source specified in

the profile and used to create the dynamic item. All source documents whose relevant characteristics have

the same value are summarized to one dynamic item.

Material determination: If you set this indicator, the characteristic is relevant for material determination,

that is, it is available in the determination of criteria for material determination.

No summarization: Controle the second step of dynamic item summarization, that is the summarization of

dynamic items for items of the billing request. If you do not set the indicator, the system summarizes all

dynamic items for which it has found the same material in the billing request of an item, even if, for

example, the assigned activity type of the two materials differs. If you set the indicator (for example, for the

characteristic 'activity type'), the system does not summarize the dynamic items, for which it has found thesame material, to an item in the billing request if the activity types are different.

Structuring: Specifies whether the field is relevant for structuring, that is, if the field is used in theoverview screen of the creation of quotations or the billing for the structuring of dynamic items. If you set

the indicator, you can specify further structuring information in the dynamic items profile with the help of a

set. You can change the structuring settings in the overview screen for the creation of quotations or billing.

You can specify your desired sequence of structuring for those characteristics that are to be used in

structuring. Sorting takes place when you specify data sets.• You can define your own characteristics and enter values for these characteristics using the customer exit

AD010003.





SAP AG 2003

DIP Profile II

Material determination

Selection criteriaSelection criteria

Use

Sources

Selection criteria

Characteristics

ProfileProfile

Quotations or billing

Types of sales documents, warranty check, errors inmaterial determination

What fields are relevant?

Summarization based on characteristics

Presentation in the overview screen

How are dynamic items determined?


items created?

How are material numbers determined?

Transfer quantity/cost


material numbers found?

The sources define the data used to determine dynamic items (for example, the actual costs of line

items or totals records, planned costs and so on). You can define your own sources using the

customer exit AD010005.

Selection criteria for sources: In this step, you can use a set to specify criteria for the selectedcharacteristics, which determine the data that is to be read from the sources. If, for example, you only

want to use data that has the activity types '1' and '2' to create dynamic items, you need to enter a set

for the characteristic 'Activity type'. This set must contain these two activity types. Instead of using a

set for the characteristics cost type, activity type and cost center, you can use cost type groups,

activity type groups or cost center groups in the selection.

You can define which service materials are determined from characteristic values for billing request

items or quotations. The following indicators are available:

• Transfer quantity/cost: You can use this to control how the quantities and costs determined from

the source are passed to the items in the sales document (only costs, costs and quantity, only

quantity, only if costs or quantity are not equal to 0)

• Material direct: Controls whether the material from the source is to be assigned to the dynamic

item.

• Individually: You use this to switch summarization before the creation of the sales document, for

example, the creation of the billing request, on or off. If you set this indicator, multiple dynamic

items with this material number are not summarized to an item of the billing request.

• Quantity conversion: Determines whether the quantity in the dynamic item is converted into the

sales unit or the base unit of measure of the material.

Selection criteria for material determination: Here you determine for which characteristic values the

material is to be determined. This can be entered in the form of sets or single values.





SAP AG 1999

Credit Memos and Invoice Corrections:Topic Objectives

Create credit memos and invoice corrections with

reference to a contract






SAP AG 1999

Credit Memo Request

Contract

Invoice

Create credit memo request Reference to

or

Delete billing block

Create credit memoCredit memo Document flow

Revenue

corrections

A credit memo request is a sales document that is used in complaint processing to request a credit

memo for a customer.

A credit memo cannot be entered directly; it can only be created based on a credit memo request.

The credit memo request can be blocked for inspection automatically by the system. If the request is

justified, the block is removed.

A credit memo can be created in billing based on the credit memo request.





SAP AG 1999

Invoice Correction

Create invoice correction

Reference to

Delete billing block

Create credit

memo

Credit memo

Difference

positive

Difference

negative

Debit memo

Create debit

memo

Document flow

Revenue

corrections

Contract

Invoice

An invoice correction request is a sales document that is used in complaint processing to correct

the quantity or price of one or more items in an invoice.

For each item, the system calculates the difference between the amount originally calculated and thecorrected amount. In the case of a positive amount, the system creates a credit memo; for a negative

amount, it creates a debit memo - in both cases, with reference to the invoice correction request.

In the invoice correction request, two items are created automatically for each item from the invoice

to be copied. The first item is a credit memo item, the second item is a debit memo item. These have

the same value and are of the same quantity. The value is credited completely by the system using

the credit memo item. If you change the debit memo item (for example, owing to a new price

determination or a change of quantity), a difference in the amount occurs.

In the standard system, the invoice correction request has the feature "Credit memo request". This

means that the system creates a credit memo based on the invoice correction request.

In Customizing, it is possible to change the feature for the invoice correction request to "Debit memo

request". In this case, the system creates a debit memo based on the invoice correction request.





SAP AG 1999

Depending on the item category, a billing plan can beassigned to each contract item.

A header billing plan can also be created.

The content of the billing plan is controlled using the

billing plan type.

During billing, billing documents are generated from

the items in the billing plan.

Resource-related billing can be performed with

reference to a contract.

Corrections to invoices already created can be

entered using credit memo requests or invoice

correction requests.

Billing: Unit Summary





Billing: Exercises

Unit: Billing

Topic: Billing Plan


List the functions of a billing plan

Define a billing plan type

The contract fees are charged to the customer at regular intervals.

1 Defining a Billing Plan Type

Create a billing plan type for periodic billing.

Billing plan type: W1 to W9 for groups 1 -9


Start date: Contract start

End date: Contract end date

Horizon: Current date + 1 year Billing date period: Yearly, on the first

The dates should be automatically generated online.

Set the indicator In advance.

FCODE overview screen: 0001 (periodic billing in advance)

Save your billing plan type.

Create a date category 01 for your billing plan type. Copy the entry for billing plan

type 02.

Assign the date category to your billing plan type.





2 Assigning a Billing Plan Type

Assign your billing plan type for the header billing plan to your sales document

type ZZ##.

Assign your billing plan type to your item category ZZ##.

3 Generating a Billing Plan

Test your settings by creating a new service contract using your sales document

type ZZ##.



Division: 00


Purchase order number: FP##

Material: PR##3

Target quantity: 1

Display the billing plan for the item.

What is the settlement period and billing date for the first date?

Change the start date in the billing plan header to the 10th

of the current month and

then display the billing plan for the item again.

Save the contract.

Your contract number:





Unit: Billing

Topic: Periodic Contract Billing


List the control options for the billing type

List the options for periodic billing

Invoices are created at regular intervals.

1 Determining a Billing Type

Determine which billing type has been given to the billing documents for your sales

document type ZZ##.

Billing type:

2 Defining Billing Types

Display the definitions of this billing type.

Do billing documents of this billing type appear in the statistics?

Which output type is used for printing the billing document?

Do not change the settings.

3 Billing

Display the list of billing documents for your sold-to-party T-CSD## from the first

day of the previous month to the last day of this month (order-related).

Create billing documents for all documents in this billing due list.

Which document numbers are assigned?

Issue the output for the last of these billing document on the screen.





Unit: Billing

Topic: Resource-Related Billing


Describe the principle of resource-related billing

The customer is billed for particular services that are not covered, or are

only partly covered by service contracts, based on costs.

1 Displaying a Billing Document

Display the billing request from the topic Price Agreements.

Determine the document number of the corresponding billing document from the

document flow.

Document number:

Display the accounting documents for this billing document.

Where do the posted revenues appear?

Display the revenues.





Unit: Billing

Topic: Credit Memos and Invoice Corrections


Enter credit memos for the contract

In certain cases, amounts for which the customer has been billed have to

be reimbursed.

1 Creating a Credit Memo Request

Create a credit memo request (sales document type G2) with reference to the first

item in your contract with the purchase order number SV##.

Enter a credit memo amount of 100 with condition type PR00.

Delete the line containing the manual discount.

Delete the billing block and enter the order reason Price difference: Price was too

high.

Save the credit memo request.

Number of the credit memo request:

Create a credit memo for this credit memo request.

Document number of the credit memo:

Display the cost report and document flow for your contract item.





Billing: Solutions

Unit: Billing

Topic: Billing Plan

1 Defining a Billing Plan Type

IMG menu path: Sales and Distribution→ Billing→ Billing Plan→ Define

Billing Plan Types

Maintain billing plan types for periodic billing

New entries


Billing plan type W1 to W9 for groups 1 - 9 X0 to X9 for groups 10 - 19

Start date 02

End date 09

Horizon 10

Billing date period 60

Online order X

In advance Select

FCODE-OvervScrn 0001Save

Sales and Distribution Billing Billing Plan Define And Assign Date

Categories

Maintain Date Category for Billing Plan Type

Select the entry with billing plan type 02 and date category 01, and choose Copy as.


Billing plan type W1 to W9 or X0 to X9

Enter

Save

Back

Assign date category


VT (for your billing plan type) 01

Save





2 Assigning a Billing Plan Type

Sales and Distribution Billing Billing Plan Assign Billing Plan Types To

Sales Document Types


BillPlanTy (for your sales

document type)

W1 to W9 or X0 to X9

Save

Sales and Distribution Billing Billing Plan Assign Billing Plan Types To

Item Categories


BillPlanTy (for your item

category)

W1 to W9 or X0 to X9

Save

3 Generating a Billing Plan

Menu path: Logistics → Sales and Distribution → Sales → Contract→ Create


Contract type ZZ##


Distribution channel 14 Division 00

Enter



Purchase order number FP##

Material PR##3

Target quantity 1

Enter Select the contract item and choose Billing plan.

The first settlement period should comprise one year. The billing date should be the

contract start date.

Back





Goto→ Header → Billing plan


Start date 10. of this month

Back

Select the contract item and choose Billing plan.

The first settlement period now begins on the 10th of this month.

Back

Save

Order number: See system message





Unit: Billing

Topic: Periodic Contract Billing

1 Determining a Billing Type

IMG menu path: Sales and Distribution Sales Sales Documents Sales

Document Header Define Sales Document Types

Select your sales document type ZZ## and choose Details.

The billing type F2 is in the Order-rel. bill. type field.

2 Defining Billing Types

Sales and Distribution Billing Billing Documents Define Billing Types

Define Billing Types

Select your billing type F2 and choose Details.

The indicator Statistics is set.

Message type: RD00

3 Billing

Menu path: Logistics → Sales and Distribution → Billing → Billing Document

→ Process Billing Due List


Billing date from 1. of the previous month

Billing date to Last day of this month


Documents to be selected Select ‘Order-related’

Display billing list

Save

Select the line with the group and choose Documents.

Logistics→ Sales and Distribution → Billing → Billing Document → Display

Billing document→ Issue output to → Screen

Execute (x 2)





Unit: Billing

Topic: Resource-Related Billing

1 Displaying a Billing Document

Logistics→ Sales and Distribution → Sales → Order → Display


Order Number of billing request

Enter

Document flow

Position the cursor on the invoice and choose Display document .

Accounting Overview No document has been generated for profitability analysis.

Continue

Back

Position the cursor on the contract and choose Display document .

The revenues posted appear in the contract item.

Select the first contract item and choose:

Environment Cost report





Unit: Billing

Topic: Credit Memos and Invoice Corrections

1 Creating a Credit Memo Request

Logistics→ Sales and Distribution → Sales → Order → Create


Order type G2



Division 00Create with reference

Contract



Selection list

Select the first item only and choose Copy.

Select the first item and choose Item conditions.

Field Name or Data Type ValuesCondition type PR00

Amount 100

Delete the line containing the manual discount.

Back

Sales


Billing block Delete

Order reason Price difference: Price was toohigh

Save

Number of credit memo request: See system notification





Logistics→ Sales and Distribution → Billing → Billing Document → Create


Document number Number of credit memo

request

Save

Number of credit memo: See system notification

Logistics→ Sales and Distribution → Sales → Contract→ Display



Enter



Back

Document flow





SAP AG 1999

Contract Settlement and Controlling

Contract settlement

Contract controlling in SIS and CO-PA





SAP AG 1999

Contract Settlement and Controlling:Unit Objectives


Settle a contract

Check the result of a contract

List the options available for the Sales

Information System and profitability analysis





SAP AG 1999

BillingBilling












SAP AG 1999

Contract Settlement and Controlling:Business Scenario

When dealing with customers and negotiating

quotations and prices, it is important to

evaluate service contract data regularly.





SAP AG 1999

Contract Settlement: Topic Objectives

List the settings for contract settlement

Settle contracts






SAP AG 2003

Control of Contract Settlement

Requirementstype

Requirements

class

Settlement

profile

Allocation

structure

PA transfer

structure

Allowed

receivers

The requirements types identify the different requirements (for example, order requirements,

vendor requirements, individual customer requirements) that can arise from a sales order item. The

requirements type for each order item is determined from the item category and MRP type of thematerial. The requirements type is displayed in the sales document and can be changed there.

Each requirements type is assigned to a requirements class. A requirements class is used to control

the requirement-related functions within Logistics and can, for example, define that a transfer of

requirements takes place for order requirements.

You can assign each requirements class to a settlement profile. The settlement profile contains all

the relevant information for controlling the settlement of CO orders, sales orders, projects and

production orders. The costing sheet used to determine overheads is also entered in the requirements

class.

The settlement schema and allocation structure are entered in the settlement profile. You use the

allocation structure to settle the costs that arise for one sender to different receivers, according to

the cost element/cost element group. The PA transfer structure is a rule for assigning costs and

revenues to the quantity and value fields in the profitability analysis.

The objects, which can or must be used as settlement receivers, are also specified in the settlement profile.





SAP AG 1999

Value Flow

Billing

document

Serviceorder

Revenues

Costs

Periodic billing

Confirmation documents

Settlement of

service order Costs

Posting completion

confirmations

Result

Settlement receiver

Contract

Revenues


Billing

document

Settlementof contract

The service order collects the costs that arise from using resources.

A billing document is generated for resource-related billing. The revenues arising from this billing

document are assigned to the service contract. Similarly, the revenues arising from periodic billing of the service contract are also assigned to the

service contract.

The service order is settled against the service contract, this means that the costs which accrued are

assigned to the service contract item.

This is how the contract result is determined. The result is as follows:

Revenues from periodic billing

+ Revenues from resource-related billing

- Costs from settled service orders

= Contract result

You can display this result in the cost report for the contract item.

The result is settled to the settlement receiver you have entered in the contract item. For example,

this can be a profitability segment from profitability analysis (CO-PA).





SAP AG 1999

Determination of Contract Result

Revenues

from periodic

contract

billing

Revenues

from

resource-related

billing of service

orders

Costs for the

service orders

Contract

result+ - =

The result of a contract item can be viewed directly in the environment menu in the cost overview.

You can display the result of the entire contract in the sales order-controlling reports.





SAP AG 1999

Contract Controlling in SIS and CO-PA:Topic Objectives

List the options available for the Sales

Information System and profitability analysis






SAP AG 1999

Evaluations in the Sales Information System

Views:

Customer

Material

Sales organization

Sales employee

Sales office

Variant configuration

Key figures:

Incoming orders

Sales volume

Number of items

Credit memos

No costs

The views correspond to the different information structures.

These information structures form the basis for data for the standard analysis of the same name.

See the documentation for the special features in the information structure for the variantconfiguration.

The different key figures can be viewed at each level of the information structures. Note here that no

information about costs is presented in the standard setting of the SIS.





SAP AG 2002

Objective of Profitability Analysis

CO-PA aims to determine the success of market segments:

CO-PA

CO-PA

CO-PA

CO-PASD business

SD

SD business

SD

Market

segment

Key sales figures

Revenue, discounts...

Description:

Customer, product,

distribution channel,

division ...

Company Market

Every company needs to analyze its profits.

For an extensive analysis, you need to describe and evaluate business transactions from a market-

oriented viewpoint. Profitability analysis allows you to implement different profitability analyses because it examines the

profitability of individual partial markets or market segments.

You can define the market segments to match your requirements. They are identified by

characteristics such as customer, product, division, sales organization, distribution channel, and so

on.

The system determines important sales figures for each segment and uses them to calculate the

profits.

Using the screens in the Information System (drill-down reporting), you can analyze data and

generate lists and reports.

The evaluations and analyses may form the basis for any future decisions in various areas in the

company.





SAP AG 2001

Profitability Report in CO-PA - Example

Contract evaluation Division: Technical Service

Period: Jan - Dec 2001 Region: South West

Contract evaluation Division: Technical Service

Period: Jan - Dec 2001 Region: South West

Gross revenues from contract

billing

Gross revenues from resource-

related billing

Total gross revenues

Customer discounts

Other sales deductions

Net revenues

Costs from service orders

Service - profit

100,000

60,000

160,000

5,000

3,000

152,000

106,000

46,000

+

=

-

-

=

-

=

A profitability report in profitability analysis identifies a result for a particular market segment for

a specific period of time.

Data such as quantity sold, revenues, discounts, other sales deductions and costs is copied from SD.This means that the SD data is passed on to the profitability analysis.

After the deduction of certain costs, the profitability analysis calculates various results from this, for

example, contribution margins.





SAP AG 1999

Profitability Analysis (CO-PA)Sales Information System (SIS)

Objective:

• Monitoring and optimization of

sales process

• Integration in the Logistics chain

• Quantity and value-oriented

• Assessment of market segments and

company units with regard

to result and contribution margins

• Reconciliation with FI

• Value-oriented

Data sources:

• Customer inquiry, quotation,

sales order, delivery,billing document

• Sales order, billing document

• Valuation with product cost planning

• Production variances• Direct costs from FI / MM

• CO overhead costs, project costs

Comparison of SIS / CO-PA

The SIS and CO-PA have different objectives. Both areas use flexible analysis techniques alongside

tried and tested planning options.

Owing to the fact that the SIS and CO-PA are used in different environments, both are considered to be systems that can be used independently of one another . This means that some requirements

can be met using either the SIS or the CO-PA.

In this connection, the SIS is considered part of the Logistics Information System. Of interest here

are stocks, quantity purchased and produced, and the incoming order quantity, quantity delivered and

quantity billed. Obviously, the corresponding values are also provided here.





SAP AG 1999

Contract Settlement and Controlling:Unit Summary

The contract settlement controls the transfer ofdata into Controlling.

The result of the contract item can be displayed in

the contract.

Summarized contract data can be analyzed in the

Sales Information System and in profitability

analysis.





Contract Settlement and Controlling: Exercises

Unit: Contract Settlement and Controlling

Topic: Contract Settlement


• List the contexts in which contract settlement is used

The contract results should be evaluated in Controlling according to

different criteria.

1 Determining Settlement Parameters

Determine the following information for your item category ZZ##:

Requirement type determined from item category:

To which requirements class is the requirement type assigned:

Settlement profile for requirements class:

Receivers allowed for this settlement profile:

2 Settling a Service Order

Perform order settlement (individual processing) for your service order from the

exercise for the repair contract.

Controlling area: 1000

Settlement period: Current month





3 Displaying the Contract Result

Display the result for the first item in your contract with the purchase order number

SV##.

Contract result:

4 Settling a Contract

Settle the first item in your contract with the purchase order number SV##.


Settlement period: Current month

Settled amount:






Topic: Contract Controlling in SIS and CO-PA


• List the options for contract controlling

The results of the contracts are evaluated to obtain information for

negotiating with customers, as well as managing pricing and services.

1 Displaying an SIS Analysis

Display the standard analysis by customer in the Sales Information System.

Make selections according to your customer T-CSD## and delete the other

characteristic values.

2 Displaying Line Items in the Profitability Analysis

Display the line items for your contract with the purchase order number SV## in

profitability analysis.

Operating concern: IDEA

Record type: C (order/project settlement)

Display one of the line items in detail.





Contract Settlement and Controlling: Solutions


Topic: Contract Settlement

1 Determining Settlement Parameters

IMG menu path: Sales and Distribution Basic Functions Availability

Check and Transfer of Requirements Transfer of Requirements

Determination Of Requirement Types Using Transaction

Requirements type: ZSM

Sales and Distribution Basic Functions Availability Check and Transfer of Requirements Transfer of Requirements Define Requirements Types

Requirements class of requirements type: ZSM

Sales and Distribution Basic Functions Availability Check and Transfer of

Requirements Transfer of Requirements Define Requirements Classes

Settlement profile: SDSM

Controlling→ Internal Orders → Actual Postings → Settlement → Maintain

Settlement Profile Maintain Settlement Profiles

Allowed receivers: G/L account and profitability segment

2 Settling a Service Order

Menu path: Logistics → Customer Service → Service Processing→ Completion

→ Order Settlement → Settle Individually


Controlling area 1000

Enter


Order Your order number

Settlement period Current month

Test run Delete indicator

Execute





3 Displaying the Contract Result

Logistics→ Sales and Distribution → Sales → Contract→ Display



Enter



The result appears in the last line of the Total actual column.

4 Settling a Contract

Logistics→ Sales and Distribution → Sales → Contract→ Subsequent

Functions→ Settlement



Sales document Your contract number

Item 10

Test run Delete indicator

Execute

The amount settled appears under Detailed lists.






Topic: Contract Controlling in SIS and CO-PA

1 Displaying an SIS Analysis

Logistics→ Sales and Distribution → Sales Information System → Standard

Analyses→ Customer



All other fields Delete

Execute

2 Displaying Line Items in the Profitability Analysis

Accounting→ Controlling → Profitability Analysis → Actual Postings →

Display Line Items


Operating concern IDEA

Enter

Yes


Record type C

Sales order Your contract number

Execute

Continue

Position the cursor on a line and then Choose.





SAP AG 1999

Contents:

Appendix

IMG paths





Customizing Paths: Service Contracts

Access to Customizing:

SAP Menu Tools AcceleratedSAP Customizing Edit Project

SAP Reference IMG button

Service contracts

Field Name or Data Type Path

Date determination rules Sales and Distribution Sales Sales

Documents Contracts Contract Data Define Rules for Determining Dates

Cancellation rules and procedures Sales and Distribution Sales Sales

Documents Contracts Contract Data

Control Cancellation

Item categories Sales and Distribution Sales Sales

Documents Sales Document Item

Define Item Categories

Response and service profiles Plant Maintenance and Customer Service

Maintenance and Service Processing

Maintenance and Service Notifications Notification Processing Response

Time Monitoring Define Response

Monitoring

Sales document types Sales and Distribution Sales Sales

Documents Sales Document Header

Define Sales Document Types

Contract profiles Sales and Distribution Sales Sales

Documents Contracts Contract Data

Define Contract Profiles




Price Determination

Field Name or Data Type Path

Pricing procedures Sales and Distribution Basic Functions Pricing Pricing Control Define

And Assign Pricing Procedures

Condition types Sales and Distribution Basic Functions

Pricing Pricing Control Define

Condition Types

PLM330_Service Contracts.pdf

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Transcript of PLM330_Service Contracts.pdf