SAP Customer Relationship Management > Service > Service Contract Management

Service Contract Management

Main Process

 

 

 

See also

 

Service contracts generate a substantial amount of revenue and profit, and SAP CRM gives users with the tools they need to make that happen. Service contract management automatically checks customers' entitlement to service so service is not given away for free. It also helps ensure that service-level agreements have been met - and that can make the difference between a satisfied customer singing your praises to others and an angry customer taking legal action against the business. SAP CRM can drive contract renewals by alerting service agents when a customer's contracts are about to expire.

  • Decreased costs:  Automates process of checking service entitlements to avoid manual processes
  • Increased revenue and profitability:  Drive contract renewals by alerting service agents when contract about to expire
  • Increased customer satisfaction:  Ensure that service contract terms & conditions are met


The following business goals and objectives can be achieved through the implementation of these processes:


Business Processes

Service AgreementSAP Component or Feature Available

Service Agreements are made for a for certain customer groups or customer hierarchies and enable corporate service contracts.

 

Service quotations, orders, and activities can be created with reference to these service agreements. This assures consistent service offerings, pricing, discounts and terms across a range of related service contracts.

This process is supported by the following SAP and/or partner offerings

  • SAP Marketing (SAP CRM)
  • SAP Sales Management (SAP CRM)
  • SAP Service Management (SAP CRM)

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    Service Contract Quotation ProcessingSAP Component or Feature Available
    This process is used to offer customers a service contract quotation before concluding the actual service contract. This gives customers an opportunity to find out more about prices and conditions before agreeing to the service contract.

    This process is supported by the following SAP and/or partner offerings

  • SAP Marketing (SAP CRM)
  • SAP Sales Management (SAP CRM)
  • SAP Service Management (SAP CRM)

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    Service Contract ProcessingSAP Component or Feature Available

    You use this process to create a service contract that can be used later on as a basis for service processes.

    This process is supported by the following SAP and/or partner offerings

  • SAP ERP
  • SAP Marketing (SAP CRM)
  • SAP Sales Management (SAP CRM)
  • SAP Service Management (SAP CRM)

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    Usage Based Contract ManagementSAP Component or Feature Available

    Usage-based contract management is used in many industries including high-tech OEMs, service providers, IM&C, media and financial services companies.

     

    It enables companies to provide solutions to their customers on demand and a billing model where they pay for what is used in a service scenario or as part of an integrated scenario with financing contracts.

    This process is supported by the following SAP and/or partner offerings

  • SAP Marketing (SAP CRM)
  • SAP Sales Management (SAP CRM)
  • SAP Service Management (SAP CRM)

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    Service Level ManagementSAP Component or Feature Available

    Agreements with the customer about the form that the performance of a guaranteed service takes.

     

    The Service Level Agreements (SLAs) define the attributes (such as content, scope and means) for the service products (for example, maintenance, Hotline) agreed on with the customer in the service contract. Different parameters, such as response time or availability time confirm a SLA.

    This process is supported by the following SAP and/or partner offerings

  • SAP Marketing (SAP CRM)
  • SAP Sales Management (SAP CRM)
  • SAP Service Management (SAP CRM)

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    Value and Quantity ContractsSAP Component or Feature Available
    A specific form of service contract, in which the defined service products are restricted to a certain target quantity or a certain total value.

    This process is supported by the following SAP and/or partner offerings

  • SAP Marketing (SAP CRM)
  • SAP Sales Management (SAP CRM)
  • SAP Service Management (SAP CRM)

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    Contract DeterminationSAP Component or Feature Available
    The contract determination enables that based on a business transaction, e.g. a service order, the system automatically determines all existing contracts with a customer.

    This process is supported by the following SAP and/or partner offerings

  • SAP Marketing (SAP CRM)
  • SAP Sales Management (SAP CRM)
  • SAP Service Management (SAP CRM)

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    Service Plan ProcessingSAP Component or Feature Available

    You use this process to create and maintain service plans. A service plan is a functional enhancement of the service contract, whereby the service plan is represented as an individual item category of the service contract item. The maintenance of service plans takes place at item level of a service contract.

    This process is supported by the following SAP and/or partner offerings

  • SAP ERP
  • SAP Marketing (SAP CRM)
  • SAP Sales Management (SAP CRM)
  • SAP Service Management (SAP CRM)

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    Financial IntegrationSAP Component or Feature Available

    The Service Contract Management is fully integrated into billing processes either in mySAP ERP or mySAP CRM.

    Revenue recognition for service contracts is enabled.
    SAP Component or Feature Available Revenue Recognition

    This process is supported by the following SAP and/or partner offerings

  • SAP ERP
  • SAP Marketing (SAP CRM)
  • SAP Sales Management (SAP CRM)
  • SAP Service Management (SAP CRM)

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    Service Contract AnalyticsSAP Component or Feature Available

    Provides information on different aspects of service contracts, e.g. billing analysis, plan/actual comparisons, contract and quotation analysis and SLA analysis.
    SAP Component or Feature Available Planned / Actual Analysis
    SAP Component or Feature Available Service Level Agreements Analysis
    SAP Component or Feature Available Service Plan Analysis

    This process is supported by the following SAP and/or partner offerings

  • SAP ERP
  • SAP Marketing (SAP CRM)
  • SAP Sales Management (SAP CRM)
  • SAP Service Management (SAP CRM)

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    SAP Product Available Partner Product Available SAP Product Available with Future Releases Partner Product Available with Future Releases Future Focus
    Please note that the Solution Map, containing proprietary information of SAP AG, reflects SAP's current development intentions, which are subject to change. Future focus coverage may be provided by SAP or SAP partners. Check for local availability of all SAP and SAP partner solutions. ©SAP AG 2007