This Contracts for Service business flow includes the following steps as mention below:(refer to Fig 1 )
- Create Quote: In the Quoting module a quote for a customer is created. The quote contains serviceable items, which are linked to a warranty. In addition to this, the customer may have ordered extended warranties for the items.
- Create Sales Order: Based on the quote a sales order is created in Order Management. The sales order is pick released, ship confirmed, and fulfilled.
- Update Install Base: The ship confirmation updates the customer’s Installed Base.
- OKS Contract: As the customer ordered items, which have a warranty attached to it, a warranty contract gets automatically created in Contracts for Service. The same for the ordered extended warranties: A contract is created in Contract for Service that captures the extended warranties.
- Author OKS contract: Alternatively a Service Contract for the extended warranties can also be created
- Create Invoice: The Main Billing Process in Contracts for Service creates regular invoices for the service offerings in the contract based on the used billing stream information in the contract.
- Service Request: After a certain time the customer got problems with one of the purchased products and enters a service request against the product.
- Reaction/Resolution Time: The system checks the reaction and resolution times which are part of the Service Contract for this product and sets Respond By and Resolution By dates in the service request.
- Problem Resolution: The customer’s problem got resolved within the service cycle, such as Depot Repair or Field Service, depending upon how it is been setup.
- Charges: During the resolving process the service department charges for expenses, used materials,and labor costs.
- Apply Entitlements: Depending on the customer’s entitlement, which are part of the Service Contract for the repaired product, the customer gets reductions on the expense, material, and labor costs.
- Submit to Order Management: The reduced charges are submitted to Order Management.
- Create Invoice: The Order Management fulfillment process creates an invoice for the charges of the service requests.
- Close Service Request: As the customer’s problem is resolved and the charges are passed to Order Management, the service request can be closed.