Understanding the Impact of Item Processing Codes when Working with Quantity Contracts
With quantity contracts, you can administer contract determination for defined products which should be restricted in a period to a specific target quantity.
Businesses typically use quantity contracts when they need to:
- Enable a flexible contract design based on individual customer business needs
- Keep their contract cost risk within an acceptable limit
- Offer an easy and intuitive contract set up without operating errors, and
- Stay informed about contract usage details
A quantity contract is an agreement within service contracts processing. This business option allows you to administer contract determination for defined products which should be restricted in a period to a specific target quantity.
By selecting this option, the customer can release products in the system from a work ticket and keep track of the contract targets and fulfillments that have been performed.
Choosing the Correct Item Processing Codes for Your Business
In general, code types are used in tickets (items) to determine how items (and their related products) are handled in the following business process. Therefore, if you have contracts in the system, the code types you choose when setting up item processing codes have a considerable influence on the way your business works with quantity contracts. Mainly, the choices made will result in how the target, release, and remaining quantities are calculated, so consider these factors when setting up your solution.
Which Item Processing Code Has What Kind Of Impact On A Quantity/Call-Of Contract?
Whether the item processing code increases, decreases, or has no impact in ticket items, you’ll find various service transaction processing type codes depending on your solution set-up. Depending on the item processing code, different handling for quantity call off (release) in contract items are relevant.
Decrease of Remaining Quantity in Quantity Contract
The following item processing codes defined in Fine-Tune have a (decrease) impact on defined product quantities in quantity contracts if they are used in tickets:
- 0001 SERVICE = Time
- 0002 PART_CONSUM_FROM_TECHN_STOCK = Part Consumption from Technician Stock
- 0004 PART_ADV_SHIP_TO_CONSI_STOCK = Part Advance Shipment to Customer Consignment Stock
- 0007 PRODUCT_WITHOUT_COST = Billing Request
- 0009 CUST_ITEM_CONFIRMATION = Item Confirmation
Example: A ticket is created and the technician provides a service, for example, using a spare part or time in accordance with the contract covered objects. Once the service occurs and is recorded in the solution, you will see a modification in the target definitions resulting in an increase in the release quantity and a reduction in the remaining quantity.
Increase of Remaining Quantity in Quantity Contract
The following item processing code defined in Fine-Tune has an (increase) impact on defined product quantities in quantity contracts if they are used in tickets:
- 0005 PART_RET_PICK_FROM_CONSI_STOCK = Part Return from Customer Consignment Stock
Example: The service technician provided a service in accordance with the contract covered objects. The stock for example, a boiler was returned. Once the service occurs and is recorded in the solution including the boiler return, you will see a modification in the target definitions resulting in a decrease in the release quantity and an increase in the remaining quantity.
No Impact of Remaining Quantity in Quantity Contract
The following item processing code defined in Fine-Tune have no impact on defined product quantities in quantity contracts if they are used in tickets.
- 0003 PART_CONSUM_FROM_CONSI_STOCK = Part Consumption from Customer Consignment Stock
- 0006 COMPLAINT_REQUEST_PRODUCT = Complaint Request
- 0008 CUST_ITEM_PLANNING = Item Planning
- 0010 EXTERNAL_PROCUREMENT = External Procurement
Example 1: The technician provided a service in accordance with the contract covered objects. The stock, for example, one boiler was already sent as ´Part Advance Shipment to Customer Consignment Stock part´ to the customer. This has had an impact on the product quantity of the quantity contract (see section Decrease of Remaining Quantity in Quantity Contract).
For this reason a ticket item with type ´Part Consumption from Customer Consignment Stock´ won´t have any further impact on the product quantity of the quantity contract resulting in the release quantity and remaining quantity staying the same.
Example 2: The technician creates a complaint item about a product. As there is not yet a clear picture about the next steps for this ticket item, there is not an impact on target definitions. The same applies for external procurement for example in a DIY (Do it yourself).
Setting-up Item Processing Codes (Tickets)
Follow the path below to set-up item processing codes for your business.
Navigate to Business Configuration –>Open Activity List –> Fine-Tune –> Show All Activities –> Tickets for Customer Support –> Maintain Item Processing Codes.