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