About Agreement Covered Spot Work

If you have set up spot coverage on an agreement, you can have the costs incurred for unscheduled work covered by the agreement.

When you manually enter a work order for spot work, if the service site on the work order is set up on the Spot Coverage tab of an active agreement, the system automatically defaults that agreement on each scope added to the work order. If the service site is covered under more than one active agreement, you can use the F4 lookup to select the correct agreement for coverage.
Note: Spot Coverage applies only to work order scopes with a Price Method of Time and Materials.

Once you begin capturing work completed (directly on a work order or via timesheets / timecards, purchase orders, or AP invoices), the system determines if the costs are covered based on the spot coverage defined for the service site (in SM Agreement Site Coverage Dtl).

For example, you set up Spot Coverage for Service Site A as follows:

SeqCall TypeLabor CoveredMaterial CoveredEquipment CoveredSubcontract CoveredMisc Covered
1CT1XXXXX
2CT2XXX
3X
You set up a work order for Service Site A, with three different scopes. The scopes are assigned call types as follows:
  • Work Order Scope #1, Call Type: CT1
  • Work Order Scope #2, Call Type: CT2
  • Work Order Scope #3, Call Type: CT3

You enter a work completed labor line for Scope #1. Both the call type and labor are covered under the agreement, so the line's Non-Billable check box is selected and no billable amounts are calculated.

You then enter an equipment line for Scope #2. Although a coverage entry exists for call type CT2, equipment costs are not covered. Therefore, the line's Non-Billable check box is not selected and billable amounts are calculated based on either the rate template for the agreement or the rate template for the work order scope, depending on how you set the Agreement Rates check box.

Finally, you enter an Inventory line for Scope #3. No coverage entry exists for call type CT3; however, there is an entry for material coverage not restricted by call type, so the inventory line is covered. Therefore, the line's Non-Billable check box is selected and no billable amounts are calculated.

Work Completed Miscellaneous Lines

For work completed miscellaneous lines, the system determines agreement coverage as follows:

  • Cost Type with CT Category of Other - If you select the Misc Covered checkbox for the agreement/service site, the line is flagged as non-billable. If you select the Misc Covered checkbox, but do not enter a cost type, the line is treated as an Other cost and is flagged as non-billable.
  • Cost Type with CT Category of Labor, Equipment, Material, or Subcontract - The line is covered if the corresponding cost type category is selected for the agreement/service site (e.g. if cost type category is Labor, the Labor Covered check box must be selected).

Miscellaneous lines generated by an AP invoice line (in AP Transaction Entry) also use the cost type to determine coverage as defined above. If the invoice line does not reference a cost type, it is treated as an Other cost type. However, if you entered a material for the line, it is treated as a material cost type.

Work Completed Labor Generated from Timecards/Timesheets

If you post a timecard or timesheet to an SM work order and labor is covered for the agreement/ service site on the work order, the resulting work completed line is flagged as Non-Billable.

If you post a timecard that includes equipment, the system generates a labor work completed line and an equipment work completed line. If coverage is defined for both labor and equipment, both lines are flagged as Non-Billable. If coverage is defined for only one of the cost type categories (for example, labor), then only the line that is covered is flagged as non-billable. The line that is not covered is considered billable and will have billable amounts calculated based on the rate template for the agreement or the rate template for the work order scope (depending on how you set the Agreement Rates check box).

Work Completed Purchase Lines

The system determines agreement coverage for work completed purchase lines on a work order as follows:

  • If a material is entered for the purchase order item, it is treated as a material cost type. This is true whether you specify a non-material cost type or don't specify a cost type at all. If materials are covered, the resulting work completed purchase line is flagged as non-billable.
  • If you do not specify a material, coverage is determined by the cost type entered for the purchase order item. For example, if you enter a labor-related cost type and labor is covered by the agreement, the resulting work completed purchase line is flagged as non-billable