Create a Service Contract

You create a service contract to define terms and charges for a service. After configuration, define the price components required to set up the contract in the service contract product offer, and combine the contract and product offer as the basis for a catalog item. If the contract is terminated before the expiration date, an early termination charge (ETC) might be assessed.

Procedure

  1. In Contracts, click the Service Contracts tab.
  2. In Service Contracts, click New Service Contract.
  3. In Create New Service Contract:
    1. In Name, enter a unique name.
    2. (Optional) In Description, enter descriptive information about its purpose.
    3. (Optional) In External ID, enter any alphanumeric character to serve as a unique ID on this pricing object. The external ID can be used for any reason that is meaningful to your implementation of MATRIXX Engine.
    4. Click Create.
  4. Specify the contract terms and conditions.
    1. In Start Date, select the contract term start date. This is the activation date of the new service contract revision.
    2. (Optional) Select Is Open Contract to specify the contract as open term (no end date). When selected, Contract Period and Contract Interval are disabled.
    3. (Required when Is Open Contract is not selected) In Contract Period, select the contract term period as week, month, or year.
    4. In Contract Interval, enter the number of contract periods in the service contract.
    5. In Period Type, select an increment for the purchased item cycle period as Minutes, Hours, Days, Weeks, Months, or Years.
    6. In Period Interval, enter a number to define the length of the cycle period.
    7. (Optional) In Commitment Period, select the type of commitment period as week, month, or year.
    8. In Commitment Period Interval, enter the number of intervals for the specified commitment period.
  5. Specify the late charge details.
    1. In Late Charge Basis, select the basis for the late charge as Fixed or Percent of cycle recurring charges.
    2. Enter the late charge amount or percentage based on the selected Late Charge Basis.
    3. In Late Charge Grace Period Type, select the late charge grace period type as hour, day, week, month, or immediate.
    4. In Late Charge Grace Period Coefficient, enter the amount of time for the selected grace period type. For example, 2 days, 3 hours. This field is required when Late Charge Grace Period Type is set, unless Late Charge Grace Period Type is set to immediate or is empty, in which case Late Charge Grace Period Coefficient is disabled (not required).
  6. Specify the termination charge details.
    1. (Optional) In Termination Charge Basis, select the basis for late charge penalties as Fixed, Percent of remaining cycle recurring charges, or Fixed plus percent of remaining cycle recurring charges. Termination Charge Basis is disabled if an ETC schedule is selected in ETC Schedule.
    2. Enter the termination charge amount or percentage based on the selected termination charge basis.
  7. In Balance Class, select the currency balance class used to impact all payments.
  8. In Balance, select the contract debt balance template used to create debt balance and late charge debt balance for missed payments and late charges.
  9. (Optional) In ETC Schedule, select the early termination charge schedule.
    Note: ETC Schedule is disabled if a termination charge basis is selected in Termination Charge Basis.
  10. (Optional) In Payment Schedule, select the payment schedule.
  11. Click Save.