On Service contract is a central tool in the service module of SAP Business One, which is used to define, manage and invoice services to customers or suppliers.
The service contract specifies in a binding manner which services a customer receives as part of a service relationship - such as response times, validity periods, included items or services. It serves as the organisational backbone for all service processes in the company.
Context and area of application:
Service contracts are used when a company offers recurring services, warranty cover or maintenance services ? typically for serial number items, groups of items or customised.
Types of service contracts (based on contract templates):
- Customer: Service contract independent of the item supplied.
- item group: Contract for an entire article group.
- Serial number: Contract refers to a specific serial number item.
Management and creation:
- Contract templates are stored centrally at Administration ? Definitions ? Service ? Contract templates maintained.
- A service contract can be created manually or based on a template.
- When purchasing a serial number article, a service contract can be generated automatically (warranty type).
- Response times, problem resolution times, validity, renewal options, reminder horizons and scope (e.g. parts, labour, travel costs) can be defined for each contract.
- A contract is activated by setting the status to Approved?.
Differentiation from similar terms:
In contrast to a Master sales agreementwhich primarily regulates quantities and prices, establishes a Service contract service conditions. Service calls The service cases, on the other hand, document specific service cases ? they are based on the stored contract, but are independent transactions.
Example or illustrative comparison:
A company sells a machine with a serial number. A warranty template is used to automatically create a service contract at the time of sale. This stipulates that the customer will receive feedback within two working days and a solution to the problem within five working days - without additional labour costs.
Additional notes on system logic:
- Contract data such as business partner code, contact person, contract number, start/end date, service type (regular/guarantee), processor, extension, item assignment, etc. are recorded in a standardised manner.
- Recurring transactions (e.g. for regular invoicing) can be assigned to the service contract.
- the B1 Mobile App provides an overview of active contracts by validity, with access to contract details and assigned service calls.
- Contract renewals can be carried out centrally ? including price adjustments based on price indices.
Integration with other modules:
- Distribution: Invoicing and renewals of service contracts.
- Warehouse management: Link to customer equipment via serial numbers.
- Business partner master data: Creation and display of associated contracts.
- Service calls: Specific services are handled on the basis of the contract.
Related terms in the SAP context:
- Service call (Service Call)
- Customer equipment card
- warranty template
- Master sales agreement
- Recurring transaction
6 reasons why updates improve an ERP system
All-rounder in service: the service desk
All support desk requirements met
More than the SAP Business One manual
Professional helpdesk software for SAP Business One
