Service level agreement (SLA) breach billing

You can create SLAs to specify the expected service levels and commitments for services that you provide or require. An applied and matched SLA on a ticket or work order sets target dates that are based on the SLA commitments. When a target date is exceeded, the SLA commitment is breached. A penalty or credit fee can be issued to compensate for the commitment breach.

Step 1: Create a price schedule and pricing rules

On a customer agreement, add a price schedule for SLA penalty fees and specify that it applies to sales orders.

On the SLA Penalty tab of the pricing rules, you associate an SLA and one or more commitments with the price schedule. For example, you might select the SLA and commitment for a customer to deliver a swapped aircraft or equipment within three days of a swap. The SLA must be associated with this customer or with no customers. Specify the type of fee. If you specify a calculated fee type, you can use the expression builder to add the penalty calculation expression, such as a percentage of the total bill price for each day that the aircraft or equipment swap is late. You can specify a maximum penalty to be charged for each SLA breach.

Step 2: On the work order or ticket, apply the SLA

On tickets or work orders for this customer, apply one or more service level agreements. A matching SLA should be the SLA that you associated with penalty fees. It applies target start and finish dates for the work.

Complete the work and close the work order or ticket.

Step 3: Review SLA breaches and create sales orders

In the SLA Breaches application, you review the commitment breaches, generate sales order previews, and create sales orders. The application lists breach records that are not closed or billed and that have actual dates within a specified number of days from the system date. The days parameter is specified in the PLUSPSLABREACHGENCRONTASK cron task.

On the List tab, you can review summary data for each open SLA commitment for a customer. Breaches include records where the target date is earlier than the current date and time, even if no actual date is on the record.

Information on this tab includes the percentage of an order type for a customer that had a breached commitment. For example, if there are 100 service requests for a customer, and five of them have an SLA breach, then 5% of service requests have a breach.

On the SLA Breach tab, review each breach record and change the status as needed. You can bill breaches with a status of New or Reviewed.

Select the action to Create Sales Order. In the Create Sales Order window, specify the option to create a sales order with one summary fee or a sales order with fees for each breach. The prices are calculated from the price schedule that is associated with this SLA. Depending on the option that you select, the generated fee lines contain the following information:

If you generate a sales order with one fee, one fee line is added to the Fees and Charges table of the generated sales order. For a fixed fee type, the line price is copied from the default line price, and can be edited. For a calculated fee type, the line price is calculated by the penalty calculation expression and the total and contributing prices can be edited.
If you generate a sales or with multiple fee lines, a fee line for each breach is added to the Fees and Charges table of the generated sales order. For a fixed fee type, the line price is copied from the default line price. Prices can be edited. For a calculated fee type, the line price is calculated by the penalty calculation expression and the prices can be edited.

Specify the default values, such as classification, fee description, GL account, and cost center. Default values are copied to preview lines. All accepted values in preview lines are copied to the generated sales orders.

To preview the sales order lines, click Preview Sales Order. You can modify lines on the preview or clear all lines. To accept the preview lines and generate the sales order, click OK. The sales order is generated and breach lines are closed when they are copied to the sales order.

Step 4: Bill the sales order

In the Sales Orders application, review the sales order and change the status to the billable status. Then, the sales order is billed in one of the following ways:

If you bill sales orders with an automated billing schedule, the bill is created on the next bill date that is specified on the customer agreement.
If you bill sales orders manually, in the Customer Billing application, create a bill and copy the sales order to it.