Price Adaptation in a Service Contract
For long-term service contracts with customers, prices of individual items are usually determined once, then remain fixed for the duration of the contract. For scenarios that require flexible pricing, price adaptation for service contracts offers two methods to update the pricing:
- Set the billing date, settlement start date, or settlement end date in a billing request line as the pricing date of a service contract item. Varying prices can then be determined according to varying pricing dates.
- Maintain the prices of service contract items manually at billing request line level.
It is also possible to specifically define an item in a service contract as a price adaptation item. When you create a service contract item by using the Manage Service Contracts app, you can choose a product and assign item category SCN2 (SC Itm (Pri. Adptn.)) to it. This is intended to be used exclusively for price adaptation, meaning that flexible pricing is now active for this item.
To have the price of a service contract determined once and subsequently fixed for the entire contract duration, use item category Service Contract Itm. Note that you cannot switch to this item category once you have selected the SC Itm (Pri. Adptn.) item category (SCN2) for price adaptation.
The Fast Entry Option for Price Adaptation
For the second option mentioned previously (maintain the prices of service contract items manually at billing request line level), on the Billing Plan tab, you can maintain the prices of service contract items manually at billing request line level. To maintain prices on billing request line level of a service contract item, navigate to the billing request line details level. Here you can change the price for each billing request line in the price details screen.
You can also maintain the prices on service contract billing plans with a fast entry screen for price adaptation. The Change Prices - Fast Entry option in the Billing Plan section of the screen can be used for this.
Price Adaptation - Fast Entry: Details Screen
Select one or multiple settlement periods and enter the relevant prices. To save the prices, choose Save Changes. After saving, the maintained prices are updated in the billing request lines of the billing plan.
Ad-hoc Billing Items in a Service Contract
A specific item category is available for ad-hoc billing items in a service contract: SCN3 (SC Itm (Ad-hoc Bill)). An ad-hoc billing item uses an ad-hoc billing plan. This means that end-users can manually create and update the billing request lines in the ad-hoc billing plan, based on their business requirements. An ad-hoc billing plan is initially empty. The option Bill Remaining Net Value can be used to automatically calculate the remaining net value of a service contract and to then create a billing request line accordingly.