ProRated Service Contracts are not getting computed correctly

[Sheila_Regine_N]

Hi Gurus,

I have here an item with 3500 price for 1 year. Calculation set in the VK12 is 'N - Quantity Yearly price' - the price is correct.

When I changed this to 1 day duration, it gives a different value from the expected value of 3500/365

[Enda]

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[Silvia_Ventura · Accepted solution]

Hi again Sheila

I think that the calculation that you are doing is not correct. First of all, PSI1 is defined as Monthly Price (calculation type = M ). The initial price of PSI1 should be 291,67 AUD per unit ( Monthly condition ) and the total is 291,67 x 12 = 3500.

Go to price details and check that the price per unit is 291,67 AUD. Afterward you changed the duration to 1 day and system recalculates the price 291,67 x 1/30 = 9.72 AUD.

The key idea : PSI1 is a price condition is per Month and the total price is calculated based in this data

12 x 291,67 when duration is 1 year

1/30 x 291,67 when the duration is 1 day

Best regards

Silvia

[Sheila_Regine_N · Accepted solution]

Hi Silvia,

The problem is we define the price as per year. Usually if we say 1 EA - that is usually 1 year duration.

We were able to handle that in ECC since there is no Service management there yet.

In ECC we set whatever pricing is in VK12 that is for a 1 year price.

regards,

Sheila Ng

[Sheila_Regine_N · Accepted solution]

Hi Silva,

I also tried to create a condition type ZPSI (copying PSI1) where the calculation type is in year, it still gives me 9.72

So I am not sure if there is another way we can achieve a yearly price and prorates to /365 days rather than 360.

[Silvia_Ventura · Accepted solution]

Hi Sheila

Let's focus in your new ZSPI condition. Go to Price Details in your item : what is the price per unit ? 291,67 or 3500?

If it's 291,67 you're still working with monthly price

BR, Silvia

[Sheila_Regine_N · Accepted solution]

Hi Silva,

So what I did was create a ZPSI (copy of PSI1) calculation type is N - year (Because I noticed that PSI1 has calculation type is Monthly)
Now, I maintained a price in VK12 3500 not 291.67 with calculation type N, where 1 EA /AU = 3500

Upon entering in the Service Contract, It still gives me 9.72 if I make the Service Contract duration to 1 day. So it is still dividing by 360...

Is there a way to make it divide to 365 while maintaining the full price in VK12 as 1 Unit = 1 year?

regards,

Sheila

[Silvia_Ventura · Accepted solution]

Hi Sheila

I see that you created an incident. We will see what is the answer from my colleagues.

Best regads

Silvia

[margretmeng]

Hi colleagues,

In the billing plan type customizing 'Control Data: Create Dates', there are options to define 'Days in Month' and 'Dates in Year'. For Cloud, billing plan type 01 and 02 are delivered. Both are configured with Dates in Year 360 days. I think this is the reason why 360 days is used for year.

This customizing belongs to service contract billing plan team. I will update the customer incident and ask service contract team to check whether my analysis is correct, whether there is SSC UI to change 'Dates in Year'.

Best regards,

Margret