1. Using Service Logistics
  2. How Service Recognition is Calculated for Coverage Adjustments

How Service Recognition is Calculated for Coverage Adjustments

When you submit the Post Charges program, cost recognition calculations will consider coverage adjustment types.

Cost recognition records are created and these calculations are one step in the process. The calculation are as follows:

Cost Recognition Percentages by Adjustment Type

Adjustment Type

Cost Recognition Percentage

Discount Amount

Calculated as Subscription Discount Amount/List Price x 100.

Markup Amount

Set to 100% just like we do for Markup Percent coverage.

Price Override

Set to 100%.

Discount Percent

Set to discount percent.

Markup Percent

Set to 100%.

A debrief/charge line can have multiple coverage adjustments if the asset being serviced is listed in multiple subscriptions or when a subscription coverage has more than one adjustment with the same business process, service activity code and billing type.

These combinations are used by the Post Charges program to create records in the Cost Recognition table:
  • Discount Amount + Discount Percent(s): Creates one cost recognition record for each adjustment.
  • Markup Amount + Markup Percent: Creates one cost recognition record for the first adjustment with 100% cost recognition.
  • Price Override (used alone): Creates one cost recognition record with 100% cost recognition.
  • Discount Percent: Creates one cost recognition record for each subscription, with its cost recognition percent equal to the discount percent.
  • Markup Percent: Creates one cost recognition record with 100% cost recognition.
These combinations will create errors in the ESS job log:

  • Mixing discounts with markups (amount or percent): No record created in the Cost Recognition Table.

  • Any discount or markup combined with a Price Override: No record created in the Cost Recognition Table.

The following subscription coverage levels are supported:

  • Asset (asset on debrief header or line)
  • Customer Account (debrief header)
  • Customer Party (sold-to customer on debrief header)
  • Customer Party Site (service address on debrief header)
  • Product/Item (from asset on debrief header)