Consumption of Limits in CAR

When coverage comes from a warranty or service type, the system considers the level of coverage on the type, not any limit amounts. Warranty types have no limit amounts. The system considers limit amounts only for contracts.

When limits come from a contract line or contract header, the amounts recorded for the limits accumulate. As activity occurs, the system monitors the amounts you charge and compares them with the contract’s limits. When you exceed the limits, the system changes the default charge code from an under-limit to an over-limit code.

Example: You have a contract coverage limit for labor of 100% up to $100. On the first line of labor usage, you record $85. The system supplies the under-limit charge code by default, and suggests a covered amount of $85. On the second line, you record another $25. The system again suggests the under-limit charge code because there is some coverage, and asks if you want to cover the over-limit amount. If you respond No to this prompt, the covered amount defaults to $15 and the billable amount to $10.

Limit amounts are actually consumed when the call invoice is posted. However, the system also tracks limit amounts used. If you take another call for this item before posting the invoice for the previous one, the system considers any labor usage over the limit, since it looks at both the used and consumed amounts.

Use the Limits Consumption Inquiry (11.5.13.21.4) and Limits Consumption Report (11.5.13.21.5) to review amounts consumed and used for a particular contract. In this context, consumed means the invoice for the activity has been posted. Used means the activity has been recorded, but not yet posted.