Working with Service Contracts 
A service contract between a customer and your company enables your company to provide maintenance and repair for an item beyond the manufacturer’s warranty coverage. You define the type of service for which the customer is eligible.
SAP Business One supports the following service contract types:
Contract Type |
Coverage |
|---|---|
Customer |
Service for all items purchased by the customer, regardless of the item group or serial number |
Item Group |
Service for items that belong to a specific item group
The contract with a customer named Microchips covers the service for items in the Printers group. This means the customer receives service for all items that belong to this group regardless of their serial numbers. End of the example. |
Serial Number |
Service for items with specific serial numbers |
You can enter a service contract manually or base one on a predefined contract template.
In addition, service contracts can be created automatically when a serial number item is delivered to the customer, either in a delivery or an A/R invoice document. When several items with different warranty templates are sold in the same document, a corresponding number of service contracts are created automatically.
For this to occur, both of the following conditions must be fulfilled:
You have created a contract template of the type Warranty, which will automatically copy its data into a service contract upon creation.
You have defined that customer equipment cards are created automatically for serial number items (on the Items subtab of the Inventory tab, in
Administration 
System Initialization
General Settings 
)
Example
Here’s an example of how the process works:
When a customer orders a serial number item, you create either a delivery note or an A/R invoice to deliver the item to the customer.
A customer equipment card is created automatically for serial number items. The customer equipment card provides you with the complete overview of all service-related information for the serial number.
At the same time, a service contract for the serial number items is created automatically, since the warranty covers these items.
As a result, you can now open service calls for the serial number items.
You can create a customer equipment card manually. This may be necessary for customers that buy the serial number item from another vendor but want to buy the maintenance contract for the equipment from you. In this case, you also must create the service contract manually.