Defining specific service terms
The contracts between your organization and its customers will eventually lead to service requests and work orders. The costs and revenues resulting from this work are determined by the terms you have agreed in a contract and linked service agreement(s). Therefore it is essential to configure your terms very precisely.
You have already linked General terms to the contract line, which apply to the whole contract. For more information, see Adding general terms.
You can use additional service terms to register any exceptions you have agreed with your customer. For more information, see Adding specific service terms.
 | To reduce the data entry effort to a minimum, it is recommended to work from generic to specific. Start by registering the largest scope first and then work downwards, by reducing the amount of data as you reach the lower level(s). |
The following subtypes are available:
• Terms for time - are used to calculate the various key performance indicators (KPIs) that apply to the delivered services, such as the Time to Respond (TTR), Time to Attend (TTA), Time to Fix (TTF) and Time to Complete (TTC). They are also used to calculate the scores of these KPIs (using the weighting as defined in the term). If applicable, terms for time also include your bonus-malus arrangements: a 'bonus' can be calculated in cases of over-performance (if the terms are met with superior results) or a 'malus' in cases of under-performance (if the terms are not met). A malus will result in a discount for the customer.
| | Similar to SLAs in the IWMS system, different time terms can be defined that apply from the moment an order is added. For more information on the working of SLAs and KPI calculations, refer to Service Level Agreements and KPI (Key performance indicator). |
• Terms for labor hours - financial terms, reflecting the hourly rates that apply to the available services. These rates are also associated with the Trades that are linked to various services in the service catalog, or to Tradesperson categories which can be linked to engineers carrying out the work. This ensures that the correct rates are automatically applied to orders when calculating the revenues ensuing from labor hours of the types Work or Waiting.
◦ For work performed outside office hours, you can define surcharge rates in the separate Surcharge terms TSI and link them to the terms for labor hours. See Terms for labor hours - fields for more information.
◦ It is also possible to link calendars to the labor hour rates that determine when specific rates are applicable, such as rates for overtime, bank holidays etc.
◦ The Terms for labor hours also allow for dynamically applied hourly rates. See Defining dynamic thresholds (threshold groups for terms), for information on how to configure this.
| | In addition to terms for labor hours to calculate the cost price of a service, you can also register the labor hour costs you have to make to deploy your employee. Comparing the two will provide clarity on the difference between the costs and revenues at labor hour level. |
• Terms for subcontractors - financial terms that are used to calculate the revenues in case subcontractor lines are present on an order.
• Terms for materials - financial terms that are used to calculate the revenues based upon the materials specified in the order lines of an order.
• Terms for travel - financial terms that are defined to calculate the revenues in case labor hours of the type Travel exist. For more information on configuring terms for travel, see Terms for travel - fields. In addition to the settings on the Terms for travel, you can select several criteria on a Property as a basis for the fixed travel revenue calculation: Travel time (minutes), Travel distance, Fixed travel allowance. Planon administrators can configure these fields on the relevant Property layout(s).
| | As of release L98, you can create multiple Terms for travel (with different calculation bases) per Service agreement / Service level combination. Before, this was limited to only one term. When you generate travel revenues, this is done for all applicable terms found on the service agreement. |