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Service Contract Pricing by Location

ctaylor56
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In Apps 10 I have a service contract with multiple lines and appropriate objects in scope for each line and each line is for a different work type.

 

One of my lines is for Emergency Work which has a Invoice Type of Resources Used (T&M).

I have a Customer Agreement for the Contract Customer Header that has all my pricing.  i.e. Non-Inventory Sale Part No. ‘LABOR’ and $100/hr

 

The above works fine without issue.  Now here is where I am looking for suggestions.  The labor price is dependent on where the work is performed.  If it was in TX is could be 130/hr, and Florida could be 135/hr.  

 

How would I achieve this automatic pricing with my Service Contract and Customer Agreement based on location of equipment?

Best answer by paul harland

Hello

Kind of depends how you are actually storing/working out those relative prices.

If you had a “base price plus a bit” concept you could do it using charge%, and distinct service contract lines for each state/region. 

Say base price = $100

For example, Florida might have a rate of 135% of the base price - defined like this:

Create a service contract line for work done in Florida:

You would need more service lines, to specify the rates in each region.

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paul harland
Superhero (Employee)
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Hello

Kind of depends how you are actually storing/working out those relative prices.

If you had a “base price plus a bit” concept you could do it using charge%, and distinct service contract lines for each state/region. 

Say base price = $100

For example, Florida might have a rate of 135% of the base price - defined like this:

Create a service contract line for work done in Florida:

You would need more service lines, to specify the rates in each region.

Yasas Kasthuriarachchi
ctaylor56
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ctaylor56
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  • ctaylor56
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  • August 6, 2020
paul harland wrote:

Hello

Kind of depends how you are actually storing/working out those relative prices.

If you had a “base price plus a bit” concept you could do it using charge%, and distinct service contract lines for each state/region. 

Say base price = $100

For example, Florida might have a rate of 135% of the base price - defined like this:

Create a service contract line for work done in Florida:

You would need more service lines, to specify the rates in each region.

Hey @paul harland , thanks for the suggestion.  This is really going to increase my service lines :(   

But still keeps my 1 Service contract and 1 customer agreement.

 

I guess I can use Geographical objects for my scope and have a geographical object per state.

Don't Count the Days, Make the Days Count
ctaylor56
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  • ctaylor56
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  • Hero (Partner)
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  • August 6, 2020
paul harland wrote:

Hello

Kind of depends how you are actually storing/working out those relative prices.

If you had a “base price plus a bit” concept you could do it using charge%, and distinct service contract lines for each state/region. 

Say base price = $100

For example, Florida might have a rate of 135% of the base price - defined like this:

Create a service contract line for work done in Florida:

You would need more service lines, to specify the rates in each region.

One issue I see here @paul harland  is that my LABOR in Florida may not be the same for all customers.  My Florida Labor base rate might be a 135% revenue of my “standard” labor rate but for customer A they’ve negotiated a rate that equates to 122% revenue of my “standard” rate.  That would cause me to come up with a customer specific Agreement Invoice Rule per state per customer, correct?

Don't Count the Days, Make the Days Count
paul harland
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hi Curtis

Not necessarily - let’s say the only percentages used are 100%, 105%, 110%, 112%, 122%, 127%, 135%.  I feel like you only need to create each of those once as an invoice rule, and then can re-use them across all contracts as applicable.  No need to create duplicates per customer.

What we usually see is that there is a handful of “special” customers that have unique status; then a mass of repeat customers that have favoured status; and then the rest, which get basic rates.  The latter 2 groups are sometimes one big group.  So, you may need a few special rules for the special customers, and then generic rules for the rest.

ctaylor56
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ctaylor56
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  • August 7, 2020
paul harland wrote:

hi Curtis

Not necessarily - let’s say the only percentages used are 100%, 105%, 110%, 112%, 122%, 127%, 135%.  I feel like you only need to create each of those once as an invoice rule, and then can re-use them across all contracts as applicable.  No need to create duplicates per customer.

What we usually see is that there is a handful of “special” customers that have unique status; then a mass of repeat customers that have favoured status; and then the rest, which get basic rates.  The latter 2 groups are sometimes one big group.  So, you may need a few special rules for the special customers, and then generic rules for the rest.

Thanks @paul harland I'll move give this solution a shot. Appreciate the responses. 

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