Service Contracts and Service Plans 
Service contracts are outline agreements with business partners which define services offered for a particular period. You support service contracts by processing contract-based services and planned services.
Service contracts represent long-term service agreements with customers in relation to the content and scope of services guaranteed within specific tolerance limits for certain parameters, for example, within a predefined timeframe.
Example
If a technical defect occurs in a customer’s machine, they are assured that a technician will be on-site at the customer’s place of business within four hours to correct the fault.
For more information, see the business user documentation under .
You can either create a service contract directly, or as a follow-up transaction for a service agreement or a service contract quotation.
Internet users can display their service contracts.
If the Internet user creates a service request or a complaint and several service contracts could be used as the basis, the Internet user can select a suitable contract and link it to the service request. For more information, see Service Contracts in E-Service.
Service contracts can be downloaded onto a laptop. They can be assigned to a document (such as a service order) and in this way can influence price determination that takes place on the laptop.
A service contract consists of header data and item data. A service product can be stipulated for each service contract item and the customer can claim this product over a certain period at a specific price.
Different types of services can be stipulated as service products in a service contract item:
An individual service (such as a hotline)
A complex service that is made up of multiple services and materials, such as an automobile inspection
A service limited according to value or quantity (such as ten free-of-charge telephone consultations after buying software, covering costs up to USD 300)
A service plan in which planned services reoccurring at intervals are entered (such as maintenance of a pump every three months)
A usage-based service (such as maintenance of a photocopier after every 100,000 copies)

You stipulate a specific service as a product in a service contract item. If service parts are required, for example, when exchanging a computer hard drive or changing tires on a car, enter these in the product list for the contract item.

In a service contract item, you stipulate a complex service package consisting of several individual services and service parts. All of the services and service parts contained in the service package are entered in the product list belonging to the contract item.
In a service contract item, you stipulate services or service packages with a specific target quantity or particular overall value. Contracts including this kind of agreement are called Service Contracts (Value/Quantity). For more information, see Service Contract (Value/Quantity).
You stipulate service products that can be claimed at specific intervals over a predefined period. These types of planned services appear in a service plan, which you process either as an independent business process or as an integral part of a service contract.
Which services are to be performed and at what service interval are defined in the service plan, although individual customer requirements can also be defined. For more information, see Service Plans.
You finalize a service contract with your customer that also contains a stipulation of services that are based on the quantity used. In this way, you can create a contract for the maintenance of copiers that should be carried out after 100,000 copies. The contract defines the services and specific conditions for the usage volume. It is a prerequisite for recording usage, calculating the usage volume, and subsequent billing. The quantity used is entered using counters and readings. For further information, see Usage-Based Service Contract Processing.