A service quotation is a quotation for some kind of a service that is to be delivered to a customer. A service in this context can be the repair or overhaul of an aircraft, engine or component; it can be a service management activity, or any other type of work that an organization can undertake on behalf of a customer.
A service quotation is connected to one or more orders that make up the scope that is to be quoted. All preparation work is done on these orders, and when the preparation work is done, the costs, revenues and margins can be calculated for the entire quotation.
Under price agreements you can define special agreements as well as look up sales prices.
Customer Agreements – These are the valid customer agreements with the customer registered on the quotation header. When calculation is performed, these agreements will be used to find prices. If no price is found in an agreement, the base sales price will be used. Note that when multiple valid agreements exist for the same customer, site and currency, the system will per default retrieve the agreement with the lowest ID to the quotation line. Further, if an agreement is selected to be excluded from auto-pricing, it will not be automatically retrieved to the quotation line. It is recommended that a specific part should be only on one automatic price fetching agreement per customer.
Special Agreements -
In some situations there might be a need to make special price arrangements for
the work to be quoted. In this case, an agreement can be selected as the primary
agreement to retrieve prices from. If such agreement is entered, prices will
be evaluated from this agreement first. If prices cannot be found in a primary
agreement, the regular customer agreements will be used, and if prices cannot be
found in customer agreements, the base price will be used.
Sales Part Price - The
Sales Part Price tab serves as a reference point to look up
sales parts independent of where they are used. The search result will also include the
sales prices used under special agreements provided the special agreements fall
within the dates of the search. Prices are retrieved from the customer agreement
and/or the sales price lists (IFS/Customer Order) entered for the customer of
the service quotation. Prices for valid sites on either customer agreements,
price lists or base parts are also displayed.
Possible statuses are New, Under Preparation, Released, Cancelled, Obsolete, Accepted, Rejected and Closed.
| Service Quotation Status | Description |
| New | This is the initial status that the quotation receives when it is created manually. It is not possible to add orders or change the work scope being quoted while the quotation is in this status. |
| Under Preparation | This is the status the quotation will have while the quoted work scope is being defined. In addition to the manual change to this status, the quotation should automatically get this status the first time any kind of order is added to a quotation in the New status using one of the wizards. The work scope being quoted can be altered freely by adding or removing orders while the service quotation is in this status. Note that the content of orders cannot be changed from the quotation. This will have to be done directly on the orders. |
| Released | Only one revision of a quotation can be in the Released status, and a maintenance item can only be connected to one released quotation, at any given time. A service quotation should normally be released before it is sent to the customer. |
| Cancelled | A quotation that is in the New or Under Preparation status can be cancelled. For example, this can be done if the quotation was created in error. When the status is Cancelled, no further changes are possible. Cancelled quotations can be deleted. |
| Obsolete | This status indicates that the service quotation is stopped for a reason other than rejection, or that it is replaced by a new revision. A quotation can be set to the Obsolete status only from the Released status. When a revision is replaced by a new revision, this status change takes place automatically on the previous revision. No changes can be done to the service quotation when it is in this status. |
| Accepted | This status indicates that the work quoted in the quotation has been accepted either partially or completely. |
| Rejected | This status indicates that the work quoted in the quotation has been completely rejected. |
| Closed | A quotation that is in the Accepted status can be set to the Closed status. This status indicates that all the work on a quotation that was accepted has been completed. |
Emergent work is work that is not known nor explicitly quoted as a scope item
before the maintenance work starts. Nevertheless it is important to be able to
handle these type of activities, since at least in larger maintenance activities
this will always happen. On a service quotation a percentage can be defined that
is quoted separately to the customer/prospect on the quotation letter based on
the price of the scope items.
Assume a scope worth 10,000 USD and an emergent work percentage of 10%. On the
quotation letter there will then be an additional 1,000 USD, i.e., the total
quoted price is 11,000 USD. The 1,000 USD is to be viewed as an indication of
how much additional work is supposed to be managed under this quotation, but is
not a fixed line as the scoped items are.
For all work performed under an explicitly scoped item, the price the customer
will pay is always the price from the quotation line for that scoped item. For
emergent work, the emergent work amount from the quotation is treated as a pool
of money that will be used wherever it is needed. In the case of maintenance
orders, maintenance tasks that are reported as non-routines will be evaluated as
emergent work, and a separate line will be invoiced for each of these tasks.
Assume two additional maintenance tasks that are registered as non-routines
during the course of execution, one for 600 USD and one for 300 USD. The first
one will create a separate line to be invoiced of 600 USD and the other one
another line for 300 USD. After these two tasks 900 USD of the 1000 USD from the
pool of money has been used.
When 90% (or more) of the pool of emergent work money has been used, an
information message is displayed describing how much of the pool of money has
been used. This can be more than 100%, i.e., no activity will be stopped from
being executed, but an indication will be given that it is time to get in
contact with the customer on how remaining emerging work should be managed. For
instance, this could result in a new revision of the quotation with a higher
percentage of emergent work. Please note that already executed emerging work
tasks should not be quoted.