You can use price agreements to define contract- and item-specific prices. You can create and maintain the following price agreements in service contracts:

• Condition records for the monthly service fee
• Condition records that offer the contract sold-to party special prices for particular materials or material groups

You can enter a condition record for the monthly service fee for a service contract item directly in the price agreement screen for the contract item. In the standard system, this is the condition type PPSV. When you enter the condition record, the system reprices the document. In the standard system, the access sequence PPPV for condition type PPSV ensures that the system immediately finds the condition record that you entered.

The standard version of the system includes the following condition types for use in creating contract-specific material prices:

The condition types are assigned to two pricing procedures (PABR01 and PABR02) in Customizing for Pricing. To activate the automatic proposal of condition records, you must assign these pricing procedures to the relevant service contract type in Customizing for Sales.

You can maintain the condition record for the price agreement directly in the contract.

Alternatively, you can assign existing condition records to the service contract. When you create a service contract, the system proposes all condition records for price agreements that are valid for the contract. When you save the contract, the condition records are automatically assigned to the contract.

When a service order is created with reference to the service contract, the system calculates the prices for the subsequent billing request on the basis of the price agreements in the underlying service contract.