You create and maintain the parameters for the Service Level Agreements.

You create a service contract quotation.

You create quotation items.

You maintain the object list. In the object list, you enter the objects for which the service product agreed in upon the quotation item can be claimed. Installed bases, installed base components, and products can be used as elements of this object list.

You maintain the product list in which you define the services and service parts that can be claimed within the context of service order management with reference to a service contract. In the service contract, you can group services and service parts in a service package which you can then offer as a service product.

You maintain price agreements in quotation items. Note that price agreements in items take precedence over prices defined in the contract header.

You send the contract quotation to the customer.

If a customer accepts the service contract quotation, create a usage-based service contract as a follow-up transaction from the quotation.

The system generates a billing plan.

The system generates billing request items.

The system activates the usage-based service contract.

The system runs revenue recognition for the usage-based service contract.

In the case of leases, the system generates attachments. The system determines the data for generating these attachments by using the product master data Device Class and Residual Value Curve.

A controlling object is created for the service contract in financial accounting. Costs and revenues are posted to the controlling object, or an existing controlling object is assigned to the service contract.

You make changes to the usage-based service contract.