SECTIONSSelling Tangible Products On a Service Contract
When you sell tangible products on a service contract they have to go through the allocate and pull, pack and ship processes so that the customer can receive them. A sales order is created to enable this process to occur. When you initiate the creation of the sales order from a service contract type customer quote, only the tangible items will move over to the sales order.
The tangible items will have a zero currency value on the sales order so that the customer will not get charged twice for the items. No intangible items associated with the service contract will appear on the sales order.
The billing information for the tangible items will appear on the service contract.
Each tangible item can have a one time charge associated with it (NRC) or a recurring cost (RC) or both. The one time charge is listed in the NRC Base field on the customer quotation. If the tangible item has a one time cost that is related to the NRC Base then this is listed in the Item Cost field. Any discounts are listed in the NRC ext. After Discounts field.
On a service contract the service term and the service term number must be the same on each line.
You can setup your organization to create a service contract from the customer quotation at the same time that you create the sales order to handle the allocate and pull, pack and ship processes. When the service contract is created the tangible items costs, item prices and any related discounts are carried over from the customer quotation to the service contract. The service contract will appear on the customer quote page once it has been created. The service contract will contain all of the tangible and intangible lines that were on the original quote.