This activity is used to define a commercial rule.
MRO (Maintenance, Repair, and Overhaul) service providers are service companies and need to work according to a set of agreed rules, and quote/invoice customers according to the same set of rules. Commercial rules are used to define how the costs will be charged from a customer.
Commercial rules can have multiple rule lines defined for different sales groups and cost types as well as a default, compulsory commercial rule line covering all other prices that are not handled by any other specific commercial rule line. Once defined, a commercial rule can be connected to a contract line in the Heavy Maintenance Contract page.
Commercial rules can be defined from the New Commercial Rule assistant by entering a unique identity in the Commercial Rule ID field and a description of the commercial rule in the Description field. A single commercial rule can have multiple commercial rule lines. Commercial rule lines can be defined for Routine work, Non Routine work or for both types if All is selected. You can specify if the rule should be applied to sales groups or cost types.
When defining a new commercial rule line, you can set the commercial type to be Resources Used, Firm Fixed Price or Free of Charge which will determine how the work orders/work tasks connected to the commercial rule should be invoiced. If Firm Fixed Price is used, specifying a sales part is mandatory and it is also possible to manually define a firm fixed price in the Sales Price field which will replace the sales part price.
Grouping levels can be defined for a commercial rule line, indicating at which level the defined cap values should be applied. Enable the Price Roll Up option if you want the sales prices to be accumulated on the grouping level (i.e., Maintenance Event).
Use the Free Quantity Cap and Free Price Cap fields to define cap values for man-hours and materials respectively. Zero amount will be charged up to the defined levels when invoicing. If you enable the Cost Based Pricing option, a value must be defined in the Cost Based Markup% field. This markup percentage will be used to calculate the sales price based on the cost.
The revenue percentage, which can have values between 0 and 100, can be used when invoicing against transactions. For example, a revenue percentage 100 means the total sales price will be included on the customer invoice and the revenue percentage 0 means the transaction will not to be invoiced.
Enable the Invoice Zero Amounts option if you want to include in the customer invoice all sales lines with a zero invoice amount which are applicable to the commercial rule. This option is enabled by default when creating a new commercial rule line but can be changed. Disable the option if you want to exclude zero amount sales lines associated with the commercial rule line from the customer invoice.
Sales groups for non-inventory sales parts should be defined in the Sales Basic Data/Sales Group tab.
As a result of this activity, a new commercial rule will be created.