Applying NFF prices to work

If a part is sent for repair or exchange but is found to be in good working condition, the work can be categorized as NFF work. Customer agreements can specify that a certain NFF rate, or percentage of NFF work orders, is allowed. Work orders that exceed the NFF threshold can be billed with a price schedule that applies NFF prices. NFF prices might be the full repair cost for the part plus a markup amount.

The NFF rate is measured against work orders that are associated with the agreement. A system administrator can specify a minimum number of work orders for an agreement before the NFF rate is calculated. For example, if the minimum is 15, there must be 15 work orders for the agreement before the percentage of NFF work orders is calculated. The minimum is specified in the PLUSPMINWONFF system variable. The default value is 0. The system variable can be updated in the Customer Agreement options for the Service Provider settings in the Organizations application.

The following process describes specifying the NFF pricing on the customer agreement and applying it to NFF work orders.

1. On the customer agreement and price schedule for parts repairs or exchanges for this customer, the delivery manager creates a price schedule that applies to standard work orders for parts repairs. The manager also creates a price schedule that applies to work orders when the allowed NFF rate is exceeded.

   For example, to bill a higher price when the NFF rate is 5% or greater, the manager specifies 4 in the NFF Rate field of the agreement and then adds a price schedule for NFF pricing. This NFF price schedule specifies material pricing rules for the full cost of the repair part plus a markup amount of 15%.

2. On the work order for a part repair or exchange, the work manager applies the customer agreement that includes the price schedule for standard parts repair pricing. The part is sent for diagnostic tests and repair.

3. If the part is found to be in good working condition and does not need repair, the work manager and delivery manager determine if the work order meets the NFF criteria. If the work is categorized as NFF work, the Part Failure field of the work detail is updated to specify that there is no part failure.

4. When the work order is saved, if the allowed NFF rate is exceeded, a warning message displays. To add the extra NFF pricing to this work, the work manager deselects the applied price schedule and applies the price schedule that includes the NFF pricing.

   The process that identifies that the NFF threshold is exceeded also updates the NFF Exceeded field on the customer agreement.