1. Field Service Guide
  2. Defining Charge Plans for Agreement Line Items (End User)

Defining Charge Plans for Agreement Line Items (End User)

You must set up charges for agreement payments. Most agreements include the following types of charges:

  • An initial payment to establish the agreement. This payment is referred to as a nonrecurring charge (NRC)

  • A recurring charge (RC). This charge is usually a monthly charge for the service package

    Note: A third kind of charge applies to usage charges.

For example, a company has a service package with a price of $15,000. There is an initial charge of $3,000 to activate the service package, followed by 12 monthly charges of $1,000 on the first day of each month. To manage this service package, you can set up a contract schedule, an NRC, and RCs for the charge plan. If you pay the NRC in installments, then you might also set up a charge plan for the NRC.

This task is a step in Process of Managing Agreements.