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Service contract flow

Can anybody please tell me what is service contract flow(is there anything called debit memo request)

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    Former Member
    Sep 05, 2008 at 09:20 AM

    Hi,

    A service contract is a contract for delivery of services e.g. AMC or even software service.

    This has the same cycle as a quantity contract, except that the material is a service related material, and a billing plan is maintained here. After creation of a service contract, a release order is created and based on item category an order related invoice or a delivery related invoice is generated. (Usually an order related invoice is generated).

    A Debit memo request is generated when the customer has made a payment which is short of the invoice value and we need to send him another document requesting the payment. First the sales team (first point of contact for the customer) would raise the request, and then based on the customer's records, the finance dept. would raise the debit memo.

    Cheers.

    Note: these two are different documents entirely.

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