Creation of service order using service contract

[Satchin]

Can we create a service order with a reference to the service contract?

In standard, the service order is having its own billing cycle and the service contract has its own. But is there a way to use the service contract as same as we use the sales contract? The sales contract (Quantity contract / Value contract) has a value that will be decreased whenever the sales order is created with reference to the sales contract.

The service contract needs to be acted as a pricing agreement. The service contract does not need to have a billing cycle. whenever the customer creates a service order with reference to the service contract it needs to have the pricing details taken from the contract not from the condition records.

Please help us with this. is there a way to achieve this in any other way?

[Pedro_Utz]

Dear arun25visa.

We helped you to accept the answer, since there were no updates after several days. You can "Unaccept" it anytime if you have further questions.

Kind regards,

Pedro

[varunvenkat · Accepted solution]

Hi arun25visa,

Let me breakdown my answer to address the two separate topics in your question.

The service contract needs to be acted as a pricing agreement.. Whenever the customer creates a service order with reference to the service contract it needs to have the pricing details taken from the contract not from the condition records.

• In S/4HANA Cloud Service Management, service contracts come with the functionality of 'Price agreements' and 'Service contract determination' out of the box. This means that you can define certain price agreements in your service contract (possible on header or item level), which are automatically determined when you create a service order. It's important to note that certain conditions need to be met for the service contract determination to be applied. For example, the sold-to-party, Sales org. and distribution channel in the service order must be the same as in the service contract, and the service order start date needs to lie within the validity period of the service contract
  

The service contract does not need to have a billing cycle

• By default, all service contracts will have a billing cycle, as service contracts are also nothing but a product that is offered and billed to the customer. If your goal is to make the service contracts free of charge for the customer, there are a few workarounds available. You can either set the condition master record (condition type PSI1) of the service contract product SRV_CONTRACT to be 0, or you can can manually provide a 100% monthly absolute discount (condition type DRV2) on item level.
  
  

Hope this provides some clarity to your question.

Best regards
Varun

[Satchin · Accepted solution]

Hi Varun Venkat,

Thanks for the reply.

I have a question how can I achieve service contract item (Quantity/ Value) in SAP S/4Hana public edition? When searched for that I didn't find anything in the public edition. Is it only available on the on-premise alone?

Can you please help me with this?

I checked in the SAP Help portal but there it is only available on the on-premise alone not in the public cloud edition.
Service Contract Item (Value/Quantity) | SAP Help Portal

On-premise:

Public cloud edition:(It is not there)

[varunvenkat · Accepted solution]

Hi arun25visa,

as far as I am aware, this functionality is not available for Service Contracts in the public cloud edition.

Best regards
Varun

[PatrickFüllemann · Accepted solution]

Hello Varun, Can a Service order or service quote also reference a sales contract? The background to my question is that we would have one contract with the customer with price agreements covering services and service parts. The same part could be sold in a straight-forward spare parts sales order without any connection to the service department, or it could be used in a service or repair order. In both case it needs to apply the same price agreement.

Can this be achieved through a single contract document, or would we need to create 2 documents: 1 sales contract, and 1 service contract with the same content for those parts that could be referenced by either?

Thank you

Patrick