Service Commitments describe the monetary content of agreements with customers and suppliers as well as termination dates. In order for a Service Commitments to be billed recurrently, it must be assigned to a contract.
A Service Commitment is valid if Invoicing via is set to Contract and the Service End Date is either blank or the Next Billing Date has not reached the Service End Date. Service Commitments with Invoicing via Sales are used to store information and are not billed on a recurring basis. If a Service Commitments is assigned to a contract, almost all changes can be made in the contract. The quantity of Service Commitments cannot be changed in the contract.
- If the Next Billing Date reaches the Service End Date, it will be grayed out. These Service Commitments are considered ended and can no longer be billed.
- An example of a service that should not be billed recurringly but store information about the sale is a warranty extension. It is billed once through the sales order. The information about how long the extension is valid is stored in the Service Commitments.
Service Commitments can be deleted if they have not yet been invoiced and are not yet assigned to a contract. If they are assigned to a contract, the contract line can be deleted to remove the assignment. If the Service Commitments have already been calculated, they must first be terminated before the Service Commitments can be deleted. Service Commitments can be edited as lines in the Service Object.
Contract lines and Service Commitments are always identical. If a contract line is edited, the change is automatically applied to the Service Commitments.