Service Contracts (SAP Library

Service Contracts

Purpose

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

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

The prices which are to apply for these routine tasks
For more information, see Standard Pricing in Service Contracts.

The prices which are to apply for additional service tasks and for any spare parts required
For more information, see Price Agreements in Service Contracts.

The terms under which the contract can be cancelled
For more information, see Cancellation Data in Service Contracts.

During the validity period of the service contract, you use the service contract as follows:

To initiate automatic billing of the routine service tasks at regular intervals
To determine whether a service request from the customer is covered by the service contract
To determine which price agreements apply for service tasks not covered by the service contract
To determine whether a cancellation request from the customer is valid
To initiate follow-up actions before the service contract becomes invalid