Understanding Agreement Pricing

The CRM system can retrieve five types of pricing records for the agreement line: agreement, agreement service, agreement case, on demand service, and on demand case.

Agreement pricing records define the fee that is paid for a specific service or support offering. The agreement price is paid when the agreement is issued to or signed by the customer. Agreement service pricing records define what the customer pays when the work that is associated with the service or support offering on the agreement is performed—that is, the price paid per transaction that is covered by a line item in the agreement. Likewise, agreement case pricing defines the amount payable by the customer for logging a case.

The CRM system only retrieves pricing records that are defined for the currency that is specified when you define the agreement. You cannot change the currency unless you clear the defined line pricing values.

For field service agreements, you define pricing records for a service or a service and product combination. When you create a line for a field service agreement, you can retrieve the price for the agreement. When you specify a prepaid purchase option, you must specify the prepaid quantity. The rate on the agreement pricing record that matches the criteria that you enter is used to calculate the base line price for the agreement line.

The rate for the agreement service pricing record that matches your criteria becomes the transaction price for work that is covered by the agreement line.

For support agreements, the functionality is similar. You can create agreement pricing and agreement case pricing records that define support rates for specific products. When you create a support agreement, the same logic (used in field service agreements) is also used in support agreement to retrieve base line price.

This topic describes line pricing calculations in detail.

The total price is calculated by adding the final line prices on the associated agreement lines. Additionally, a final uplift or discount percentages can be applied to the base price of the agreement. For example, if the CRM system calculates a base price of 2,000 USD for the agreement and you have entered a discount of 10 percent, the CRM system calculates a total price of 1,800 USD for the agreement.

If you modify the entitlements on an agreement line, change the installed product quantity for an agreement line, or update the start and end dates of the agreement line after agreement line pricing has been calculated, the change you made is not automatically reflected in the final line price, though edit messages issued when the user saves a changed agreement will prompt the user to have the system update the price or leave the price unchanged.

In other words, if the values of the variables (for example, entitlement adjustment and agreement duration) that are used to calculate the current final line prices do not match the ones that are captured for the new calculation, the price of the agreement is no longer accurate. You can then recalculate the final price for the agreement lines as needed and update the total agreement price for the agreement.

PeopleSoft CRM enables you to uncouple service pricing from an agreement for PeopleSoft Support and PeopleSoft Integrated FieldService. This enables you to define prepaid agreement with zero pricing, without having to set up service pricing first.

In addition to the External and Internal agreement categories, there is an agreement category called External – No Pricing. This category enables you to set up prepaid agreements without pricing. To create a flat zero dollar agreement, you can use either the External or External – No Pricing agreement category.

PeopleSoft CRM, however, recommends using the External – No Pricing agreement category, as the system bypasses the pricing logic and does not display a pricing warning message. This enables you to create an unlimited number of cases or service orders. To create a prepaid agreement with no pricing, use the External – No Pricing category. The system hides the Order Capture Created check box in the agreement header, but you can still define prepaid purchase options.

By having the Prepaid Quantity field on the agreement header level, it enables you to have a pool of prepaid quantities per agreement across agreement lines. The system displays the prepaid fields only when the category is External – No Pricing.

Once a prepaid agreement is active and used on a case or service order, changing the prepaid quantity will not do anything. The system sets the Prepaid section to read only after the agreement has been used by the case or service order, when the remaining quantity is less than the prepaid quantity. When the agreement is renewed, the system uses the same prepaid quantity, remaining quantity, and prepaid total as the old line.

The Product grid displays the prepaid purchase option defined for each product. The prepaid option at the agreement header level and the Product grid level cannot coexist, however. You need to either define the total pool of prepaid purchase options for the whole agreement or the prepaid purchase options per product.

In addition, you can define the prepaid option on the line level for service-related agreements. For service-related agreements, the prepaid option can only be specified on the agreement header, line level, or product level. For support-related agreements, you can only specify the prepaid option on the agreement header or the product level. The prepaid option on the line level doesn’t apply to support-related agreements, it only applies to service-related agreements.