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Confirmation of services

Posted on 2006-07-15
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Last Modified: 2013-12-08
Generally, in the document flow, i see the sales order, delivery, picking (TO's if WM managed), PGI, and billing. However, for this particular sales order, there is a "Confirmation of Services" step in the document flow in between the delivery and invoice steps. What is this process? It does not seem to be related to service items because the sales order contains header level BOMs and their respective item level BOMs and they all have a quantity of 1 or more, and are storage location or warehouse managed. So, they do not look like services. There also doesn't seem to be a document that exists for this step.
Please, enlighten me on what this step does and why/why not it's useful.

Thanks,
Nick
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Question by:simarik91
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Bygbea earned 250 total points
ID: 17229280
If you have a services contract you can use a service master to record each service call and the services provided.  This recording of services is called a service confirmation.  Once a person enters or confirms that they performed this service for a customer the items should be billed during the next billing run.

This is especially helpful for contracts that entail a yearly of multi-year agreement to include services with garanteed pricing for variable services.  

For example: I have a IT Srevice contract for one year.  I charge $500 a month and it convers the following services, all virus, spam, and backup support.  However, if the issue is related to network failier.  The I will fix the problem but the customer has a contracted price of $50 per hour maximum of $10,000 per year.  So, if I make a service call to the customer and spend 3 hours fixing network issues I comfirm 3 hours and the customer if billed occordingly.  If by chance I am over the contracted amount the system can be set up to issue a warning or error telling me I am over the aloted amount, total, ect.

I hope this helps.
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by:dann47
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No comment has been added to this question in more than 21 days, so it is now classified as abandoned.
I will leave the following recommendation for this question in the Cleanup topic area:

Accept: Bygbea

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