Managing price escalations

Manage price escalations

Select the “Manage Automatic Price Escalations” link under the “Sale Contract” business component.

The “Manage Price Escalations” page appears.

Select one of the following radio buttons under Price Escalations.

Contract Escalations	Select the radio button to work with price escalation related to sale contracts.
Pricelist Escalations	Select the radio button to work with price escalations related to part service pricelists.

Specify any or all of the filters under Search Criteria.

Escalation Document

To retrieve escalation documents associated with specific document type, select the document type from the drop-down list box. The drop-down list box displays:

§ Sale Contract, if you have selected the Contract Escalations radio button

§ Part Pricelist and Service Pricelist, if you have selected the Pricelist Escalations radio button.

Specify the document unique identifier (contract#/part pricelist #/service pricelist #) in the input box available alongside to retrieve escalations associated with the document.

Help facility available

Customer #

To retrieve escalations applicable to contracts associated with specific customer based on customer #, select Customer # from the drop-down list box. Alternately, you can select Customer Name from the drop-down list box to retrieve escalations associated with contracts based on customer name.

Enter customer # / name in the input box available alongside

Help facility available.

Escl. Eff. Date From/To

To retrieve contracts/pricelists with escalations effective in specific period, enter start date and end date of the period.

Addl. Search

Use the drop-down list box to select an additional attribute based on which you want to search/retrieve escalations. However, the options in the drop-down box will depend on the selection in the Escalation Document filter.

Use the next drop-down lit box to select the value for the selected attribute.

Escalation Document	1^st drop-down list box displays	2^nd drop-down list box displays
Sale Contract	· Contract Type	· Customer Specific · General
	· Sale Type	All Active Sale Types defined from the Set Process Parameters screen under the Define Process Entities activity of Common Master
Part Pricelist	· Part Pricelist Type	· Regular · OEM · Ref. Catalogue
	· Part Pricelist Category	All Active Pricelist Categories from the Maintain Category Codes activity of the Category business component under Sales setup
Service Pricelist	· Service Pricelist Type	· Regular · OEM · Ref. Catalogue
	· Service Pricelist Category	All Active Pricelist Categories from the Maintain Category Codes activity of the Category business component under Sales setup

Click the “Search” pushbutton to retrieve escalation documents that meet the filters specified in the criteria.

Price Escalations for Sale Contracts

The “Contract Escalations” multiline displays the following details of the retrieved documents by the search.

You can record escalation details or update previously recorded escalation details in the “Contract Escalations” multiline

You can specify the following in the multiline.

Contract #

The unique identifier of the sale contract against which you want to record/update/remove price escalations. Mandatory.

Help facility available

The “Contract Escalations” multiline appears with the following fields, if you have selected the Sale Contract radio button.

Contract Type	The type of the contract.
Customer #	The customer associated with the contract.
Customer Name	The name of the customer associated with the contract.

Enter the following in the “Contract Escalations” multiline.

Escl. % on all Rates	The percentage of escalation to be applied on all the defined rates, such as FPWU, FP Object, FPM and UB Pricing rates. Note: You cannot specify any escalation percentage for FPWU, FP Object, FPM and UB Pricing, if you have specified this field.
Escl. % on FPWU	The percentage of escalation in FPWU rate.
Escl. % on FP Object	The percentage of escalation in FP Object rate.
Escl. % on FPM	The percentage of escalation in FPM rate.
Escl. % on UB Pricing	The percentage of escalation in UB Pricing.
Escl. Eff. From	The start date of the period in which the escalated prices are effective. Mandatory.
Escl. Eff. To	The end date of the period in which the escalated prices are effective.
Escl. Remarks	Any comments on the escalated prices.
Notes	More details on the price escalation.

The “Contract Escalations” multiline displays the following

Processing Remarks	Displays § “Escalations set & Confirmed”, on saving the escalation rates to the contract/pricelist § “Escalations Processed”, if the escalation terms are applied once the effectivity period is reached
Modified By	The login user who most recently modified the record.
Modified Date	The date on which the login user modified the record.
Created By	The login user who created the record.
Created Date	The date on which the login user created the record.

Price Escalations for Pricelists

The “Pricelist Escalations” multiline appears with the following fields, if you have selected the Pricelist Escalations radio button.

You can record escalation details or update previously recorded escalation details in the “Pricelist Escalations” multiline

Part Pricelist #	The part pricelist for which you want to record price escalations.
Service Pricelist #	The service pricelist for which you want to record price escalations.
Pricelist Description	The description of the pricelist.

Enter the following in the “Contract Escalations” multiline.

Escl. % on?	Use the drop-down list box to select the rate that must be hiked / revised. Mandatory. The drop-down list box displays: § Material Base Rate § All resource rates § Skill Rate § Equipment Rate § Tools Rate § Base Rate Note: You can set escalation on Base Rate only, for part pricelists. On the contrary, you can set escalation on any rate other than Base Rate for service pricelists.
% on Escl.	The percentage of escalation on the selected rate. Mandatory.
Escl. Eff. From	The start date of the period from which the escalated prices are effective. Mandatory.
Escl. Eff. To	The end date of the period in which the escalated prices are effective.
Escl. Remarks	Any comments on the escalated prices
Notes	More details on the price escalation.

The “Contract Escalations” multiline displays the following

Processing Remarks	Displays § “Escalations set & Confirmed”, on saving the escalation rates to the contract/pricelist § “Escalations Processed”, if the escalation terms are applied once the effectivity period is reached
Modified By	The login user who most recently modified the record.
Modified Date	The date on which the login user modified the record.
Created By	The login user who created the record.
Created Date	The date on which the login user created the record.

Processing Escalations

Select the escalation record you want to save or delete in the multiline.

Select the “Update Escalations” pushbutton to save the details recorded in the multiline.

Note: You cannot apply 1) Price escalations against contracts with pricing basis as “T & M”; 2) In case of part pricelists, escalations can be provided for Ref. Catalogue, OEM pricelist or Regular pricelist with only Direct Pricing definitions.

4 Price escalations will be automatically applied on the latest contract /pricelist revision #, if “Escalations for contract” set as ‘Automatic’ in the Manage Sales Contact activity.

4 Escalation details will be saved against the latest revision of the contract/pricelist. The scheduler will apply and derive new revision “threshold number of days” ahead of the effective from date specified in the escalation document. Here, threshold number of days refers to the value set for the process parameter “Threshold no. of days to effect contract revision automatically based on price escalation setup” in the Set Sales Process Parameters activity.

4 New revision # with revised prices derived based on escalations will be generated in the “Authorized” status.

4 The revised prices/rates will be applicable on contracts/pricelists between the effective from and effective to dates as specified in teh escalation document

4 Any new revision manually created by the users after price escalations were defined on the contracts/pricelists, the escalation will be effected on top of the prices in the new revision

Select the “Cancel Escalations” pushbutton deleted the selected escalation record.

Note: You cannot cancel an escalation record, if it has already been processed (i.e. Processing Remarks
= Escalation Processed).