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Siebel Field Service Guide > Agreements > Process of Creating Agreements > Defining Conditional Charge Plans for Agreement Line ItemsWhen conditional charge plans have been set up using the Administration - Contracts screen > Conditional Charge Plan view, users can then select the appropriate conditional charge plans for agreement line items. See Setting Up Conditional Charge Plans for more information on how to set up a conditional charge plan. NOTE: The day on which the agreement is terminated by the customer is the day on which the conditional charge is created. Also, if no conditional charge plan is associated with the agreement line item, the penalty is simply charged. Scenario for Conditional Charge PlansThe administrator creates a conditional charge plan called Termination Plan. This plan specifies that if a customer arranges an early cancellation of their agreement, they must pay 8.33% (100% spread over 12 months of the year) of the agreed penalty charges for each remaining month until the end of the period covered by the agreement. A user setting up a photocopier maintenance agreement for a customer associates the Termination Plan with the photocopier agreement line item. The user then specifies that a total penalty of $150 applies for this line item if the agreement is canceled before a year has expired. The customer with the maintenance agreement calls to cancel the 12-month contract after just six months have passed. According to the Termination Plan, the customer must now pay 8.33% of the total cancellation fee ($150) for each of the remaining six months. In total, the customer must pay 8.33% x $150 x 6 months, which is $74.97. To define a conditional charge plan for an agreement line item
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Siebel Field Service Guide |