Complex assembly service contracts are used to define pricing rules and conditions that are applied when invoicing MRO (Maintenance, Repair, and Overhaul) customers. The advantage that a complex assembly service contract has over a normal customer agreement is that the pricing rules and conditions can be defined for individual positions of a product structure within the same service contract, whereas in a normal customer agreement the rules and conditions apply to all the objects in a structure (if chosen to do so), i.e., individual pricing definitions are not possible.
A service contract is defined per customer, per site, and per product structure. A product structure is a result of a template structure being transferred from IFS/Fleet and Asset Management to IFS Manufacturing. While a contract can be valid for a certain period of time it also contains an effective date. The effective date is used to determine the valid price to be used from the price list(s) defined on the service contract. The effective date will also ensure that the same price from the price list will be used throughout the work until it is finished, irrespective of whether the price list is updated during the work period.
In addition, the contract can include quality parameters such as:
The pricing definitions within a complex assembly service contract consist of the following:
Labor Rates - The sales rate at which a particular labor is sold. The cost of the labor class is defined in IFS Manufacturing. If the sales rate is not defined on the contract the cost will be taken as the sales rate by default. You can define different currency rates and payers (useful for multi-invoicing) for the labor classes.
Cost Types - As the name implies, a cost type identifies and categorizes the type of cost incurred on the complex assembly work order. A cost type can have one of the following MRO cost category: Material, Labor, Machine, Overhead, Purchase, Tools Equipment, and Other.
Structure Pricing - Under structure pricing, you can define how the services performed for each part in the structure should be priced. Structure pricing is in turn divided into four types of pricing:
All of the above pricing types require a sales part that has been defined exclusively for the structure pricing. In addition, the pricing types Fixed Price, Fee Cap, and Price Cap require relevant cost types to be defined as well.
A complex assembly service contract has the following statuses:
Planned - When a contract is created it receives the Planned status.
Active - Once the contract has been prepared with the relevant information, the status should be set to Active. An Active contract can be applied to a complex assembly work order.
Negotiated - The status of the contract is set to Negotiated when you need to edit an active contract. Once the necessary changes have been completed you can set the status back to active and re-apply the contract on the complex assembly work order.
Obsolete - A contract is set to obsolete when it is no longer used, i.e., the validity of the contract has expired.