11i Service Contracts

Fundamentals
Student Guide

D17440GC10
Edition 1.0
January 2005
D40260

Copyright Oracle Corporation, 2005. All rights reserved.

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Authors
Michael Meditzky, Assad Akhavan
Technical Contributors and Reviewers
Gunjan Kumar, Anil Prabhu, Jiri Weiss, Aseem Chandra, Carol Robinson, Alexander Joseph,
Kamna Sharma, Srinivas Ramakuri, Sitikantha Panigrahi, Taheri Saifee, Lal Bandaru,
Srujam Koppula, Vikram Singhvi, Arjen Hiemstra, Denis Faivre
This book was published using:

oracletutor

Table of Contents
Overview of Service Contract Management and Oracle Service Contracts...............................................1-1
Overview of Service Contract Management and Oracle Service Contracts ..................................................1-2
Objectives ......................................................................................................................................................1-3
Agenda...........................................................................................................................................................1-4
Quote to Warranty / Extended Warranty Flow ..............................................................................................1-5
Author to Sign Service Contract Flow...........................................................................................................1-7
Expiring Contract to Renewal Flow ..............................................................................................................1-9
Change or Terminate Contract Flow .............................................................................................................1-11
Service Request to Resolution Flow..............................................................................................................1-13
Goals of Oracle Service Contracts.................................................................................................................1-15
Contract Related Terms .................................................................................................................................1-17
Oracle Service Contracts in the E-Business Suite .........................................................................................1-18
Agreements and Lines Supported by Oracle Service Contracts ....................................................................1-20
Warranties and Extended Warranties ............................................................................................................1-22
Phases Overview............................................................................................................................................1-23
Contract Phases .............................................................................................................................................1-24
Authoring Components..................................................................................................................................1-26
Coverage Templates ......................................................................................................................................1-28
Pricing and Billing.........................................................................................................................................1-30
Contract Terms ..............................................................................................................................................1-31
Author to Sign Contract Flow........................................................................................................................1-32
Guided Demonstration - Create a Service Contract...................................................................................1-33
Guided Demonstration - Create a Subscription Contract...........................................................................1-37
Contract Approvals........................................................................................................................................1-42
Guided Demonstration - Approve and Sign a Contract .............................................................................1-43
Execution Window ........................................................................................................................................1-45
Administration Components Overview .........................................................................................................1-46
Renewals........................................................................................................................................................1-47
Expiration, Extension, Termination...............................................................................................................1-48
Guided Demonstration -Terminate Contract .............................................................................................1-49
Summary........................................................................................................................................................1-50
General Oracle E-Business Setups for Oracle Service Contracts................................................................2-1
General Oracle E-Business Setups for Oracle Service Contracts ..................................................................2-2
Objectives ......................................................................................................................................................2-3
Agenda...........................................................................................................................................................2-4
Confirm General Setups ................................................................................................................................2-5
Set Up System Administrator ........................................................................................................................2-6
Define Key Flexfields....................................................................................................................................2-7
Define Calendars ...........................................................................................................................................2-9
Define Currencies and Set of Books..............................................................................................................2-10
Define Organizations.....................................................................................................................................2-11
Set Up Employees .........................................................................................................................................2-12
Confirm Setups in Oracle Applications .........................................................................................................2-13
Confirm Setup of Oracle Inventory ...............................................................................................................2-14
Confirm Setup of Oracle Bills of Material ....................................................................................................2-15
Confirm Setup of Oracle Work in Process ....................................................................................................2-16
Confirm Setup of Oracle Order Management................................................................................................2-17
Confirm Setup of Oracle Advanced Pricing ..................................................................................................2-18
Confirm Setup of Oracle Receivables ...........................................................................................................2-19
Confirm Setup of Oracle TeleService............................................................................................................2-20
Confirm Setup of Notes (Optional) ...............................................................................................................2-21
Confirm Setup of Resource Manager ............................................................................................................2-22
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11i Service Contracts Fundamentals Table of Contents

Confirm Setup of Oracle Install Base ............................................................................................................2-23

Confirm Setup of Oracle Depot Repair (Optional)........................................................................................2-24
Confirm Setup of Oracle Complex Maintenance, Repair, and Overhaul (Optional) .....................................2-25
Summary........................................................................................................................................................2-26
Overview of the Oracle Service Contracts Setup Steps................................................................................3-1
Overview of the Oracle Service Contracts Setup Steps.................................................................................3-2
Objectives ......................................................................................................................................................3-3
Agenda...........................................................................................................................................................3-4
Oracle Service Contracts Implementation Setups..........................................................................................3-5
Service Contracts Setup Report .....................................................................................................................3-6
Setup Report Sections....................................................................................................................................3-7
Setup Report: Profile Setup Sample ..............................................................................................................3-9
Setup Report: Transaction Type Setup Sample .............................................................................................3-10
Setup Report: Category Setup Sample...........................................................................................................3-11
Setup Report: OC Integration Setup and Time Units Mapping Sample ........................................................3-12
Setup Report: Global Contract Defaults Sample ...........................................................................................3-13
Setup Report: Coverage Template Setup Sample ..........................................................................................3-14
Setup Report: OC Integration Setup and Time Units Mapping Sample ........................................................3-15
Setup Report: Descriptive Flexfield Segment Setup Sample.........................................................................3-16
Practice - Running Service Contracts Setup Report ..................................................................................3-17
Solution Running Service Contracts Setup Report .................................................................................3-18
Summary........................................................................................................................................................3-20
Defining Parties, Roles, Sources, and Access to Contracts ..........................................................................4-1
Defining Parties, Roles, Sources, and Access to Contracts ...........................................................................4-2
Objectives ......................................................................................................................................................4-3
Agenda...........................................................................................................................................................4-5
Purpose of Parties, Roles, and Sources..........................................................................................................4-6
Party and Contact Roles Codes......................................................................................................................4-7
Assigning Role Sources.................................................................................................................................4-9
Guided Demonstration - Setup Party Roles and Sources...........................................................................4-11
Practice - Party Roles and Sources ............................................................................................................4-13
Solution Party Roles and Sources...........................................................................................................4-15
Contract Security ...........................................................................................................................................4-19
Contract Category Terms...............................................................................................................................4-20
Assigning Responsibilities to Categories ......................................................................................................4-21
Guided Demonstration - Contract Access at Category Level ....................................................................4-22
Example of Category Setup ...........................................................................................................................4-23
Contract Level Security Overview ................................................................................................................4-24
Guided Demonstration - Contract Access at Contract Level .....................................................................4-25
Resource Setup - Example.............................................................................................................................4-26
Summary........................................................................................................................................................4-27
Miscellaneous Setups.......................................................................................................................................5-1
Miscellaneous Setups ....................................................................................................................................5-2
Objectives ......................................................................................................................................................5-3
Stage Reached in Implementation Sequence .................................................................................................5-4
Agenda...........................................................................................................................................................5-5
Oracle Quoting Integration Registration........................................................................................................5-6
Where Are Time Units Used?........................................................................................................................5-8
Mapping Time Units......................................................................................................................................5-9
Guided Demonstration - Map Time Unit of Measure................................................................................5-11
Practice - Contract Time UOM..................................................................................................................5-12
Solution Contract Time UOM ................................................................................................................5-14
Setting Up the Service Key Flexfield ............................................................................................................5-16
Where Do Contract Groups Fit In?................................................................................................................5-18
Defining Contract Groups .............................................................................................................................5-19
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Maintaining Contract Groups ........................................................................................................................5-20

Guided Demonstration - Set Up Contract Groups .....................................................................................5-21
Practice - Contract Groups.........................................................................................................................5-23
Solution Contract Groups .......................................................................................................................5-25
Where Does Autonumbering Fit In?..............................................................................................................5-30
Autonumbering Contracts Overview .............................................................................................................5-31
Autonumbering Features Overview...............................................................................................................5-32
Autonumbering Example...............................................................................................................................5-34
Key Autonumbering Rules ............................................................................................................................5-35
Autonumbering Setup Process.......................................................................................................................5-37
Guided Demonstration - Set Up Autonumbering ......................................................................................5-38
Practice - Contract Autonumbering ...........................................................................................................5-39
Solution Contract Autonumbering..........................................................................................................5-40
Where are Processes and the QA Checklist Used? ........................................................................................5-41
Defining Processes ........................................................................................................................................5-42
Defining a Quality Assurance Checklist........................................................................................................5-44
Guided Demonstration - Create QA Checklist ..........................................................................................5-46
Practice - Quality Assurance Checklist......................................................................................................5-47
Solution Quality Assurance Checklist ....................................................................................................5-49
What is Cotermination? .................................................................................................................................5-50
Where is Cotermination Used?......................................................................................................................5-51
Defining Customer and System Cotermination .............................................................................................5-52
Minimum Service Duration ...........................................................................................................................5-54
Minimum Service Duration Cotermination Example ....................................................................................5-55
Guided Demonstration - Define Service Cotermination............................................................................5-56
Summary........................................................................................................................................................5-57
Setting Up Coverage Templates and Subscription Templates.....................................................................6-1
Setting Up Coverage Templates and Subscription Templates.......................................................................6-2
Objectives ......................................................................................................................................................6-3
Stage Reached in Implementation Sequence .................................................................................................6-4
Agenda...........................................................................................................................................................6-5
What are Coverage Templates? .....................................................................................................................6-6
Where Do Coverage Templates Fit In? .........................................................................................................6-7
Define Coverage Types .................................................................................................................................6-8
Prerequisites for Coverage Templates ...........................................................................................................6-9
Coverage Template Overview .......................................................................................................................6-10
Coverage Window Areas...............................................................................................................................6-13
Coverage Template: Main General Fields .....................................................................................................6-14
Coverage Template: Warranty Area Fields ...................................................................................................6-15
Warranty Inheritance Examples ....................................................................................................................6-17
Coverage Template: Rules Area Fields .........................................................................................................6-18
New Contracts Created by Transfer Options .................................................................................................6-19
Coverage Template: Preventive Maintenance Area Fields............................................................................6-20
Coverage Template: Business Process Area Fields .......................................................................................6-21
Coverage Template Window Tabs ................................................................................................................6-22
Coverage Template Coverage Times: Main Fields .......................................................................................6-23
Coverage Template Reaction Times: Main Fields.........................................................................................6-25
Coverage Template Resolution Times: Main Fields......................................................................................6-26
Coverage Template Resources Fields............................................................................................................6-27
Coverage Template Billing Types: Main Fields............................................................................................6-28
Guided Demonstration - Create a Coverage Template ..............................................................................6-29
Practice - Coverage Template....................................................................................................................6-32
Solution Coverage Template ..................................................................................................................6-35
Defining a Subscription Template .................................................................................................................6-41
Defining Subscription Items in Oracle Inventory..........................................................................................6-43
Summary........................................................................................................................................................6-44
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Setting Up Items ..............................................................................................................................................7-1

Setting Up Items ............................................................................................................................................7-2
Objectives ......................................................................................................................................................7-3
Stage Reached in Implementation Sequence .................................................................................................7-4
Agenda...........................................................................................................................................................7-5
Inventory Items for Oracle Service Contracts ...............................................................................................7-6
Defining Inventory Service Items..................................................................................................................7-7
Defining Inventory Usage Items....................................................................................................................7-8
Defining Inventory Subscription Items..........................................................................................................7-9
Defining Inventory Warranty Items...............................................................................................................7-10
Defining Serviceable Items............................................................................................................................7-11
Attaching Warranties to Serviceable Items in Oracle Bills of Material.........................................................7-12
Defining Inventory Labor Items ....................................................................................................................7-13
Guided Demonstration - Inventory Items ..................................................................................................7-14
Pricing Items for Oracle Service Contracts ...................................................................................................7-15
Pricing Service Items Example......................................................................................................................7-16
Miscellaneous Pricing Examples ...................................................................................................................7-17
Usage Item Pricing Example .........................................................................................................................7-18
Point and Range Price Break Example ..........................................................................................................7-19
Guided Demonstration - Pricing Items ......................................................................................................7-20
Defining Counter Groups and Counters ........................................................................................................7-21
Guided Demonstration - Counter Groups and Counters ............................................................................7-23
Where Does Service Availability Fit In? .......................................................................................................7-24
Defining Service Availability ........................................................................................................................7-25
Guided Demonstration - Define Service Availability................................................................................7-26
Practice - Service Availability ...................................................................................................................7-27
Solution Service Availability..................................................................................................................7-28
Summary........................................................................................................................................................7-30
Setting Up Service Billing and Billing Profiles..............................................................................................8-1
Setting Up Service Billing and Billing Profiles.............................................................................................8-2
Objectives ......................................................................................................................................................8-3
Stage Reached in Implementation Sequence .................................................................................................8-4
Agenda...........................................................................................................................................................8-5
How Billing Affects Service Contracts .........................................................................................................8-6
Service Contracts Billing...............................................................................................................................8-7
Billing Setups in Oracle Receivables.............................................................................................................8-8
Setting Up Transaction Types .......................................................................................................................8-9
Setting Up Batch Transaction Sources ..........................................................................................................8-11
Setting Up Transaction Flexfield Segments ..................................................................................................8-12
Where Do Billing Profiles Fit In?..................................................................................................................8-14
Defining Billing Profile Fields ......................................................................................................................8-15
Billing Profile Examples (Main Fields).........................................................................................................8-17
Guided Demonstration - Create a Billing Profile.......................................................................................8-18
Practice - Billing Profile ............................................................................................................................8-19
Solution Billing Profile...........................................................................................................................8-20
Summary........................................................................................................................................................8-21
Setting Up Statuses and Operations...............................................................................................................9-1
Setting Up Statuses and Operations...............................................................................................................9-2
Objectives ......................................................................................................................................................9-3
Stage Reached in Implementation Sequence .................................................................................................9-4
Agenda...........................................................................................................................................................9-5
Purpose of Statuses and Operations...............................................................................................................9-6
Status and Status Type - Terms .....................................................................................................................9-7
Category and Operation - Terms ...................................................................................................................9-8
Allowable Operations for a Status .................................................................................................................9-9
Status and Operations Setup ..........................................................................................................................9-10
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Guided Demonstration - Associate Operations to a new Status ................................................................9-12

Practice - Statuses and Operations.............................................................................................................9-13
Solution Statuses and Operations ...........................................................................................................9-15
Summary........................................................................................................................................................9-18
Setting Up Global Contract Defaults .............................................................................................................10-1
Setting Up Global Contract Defaults .............................................................................................................10-2
Objectives ......................................................................................................................................................10-3
Stage Reached in Implementation Sequence .................................................................................................10-4
Agenda...........................................................................................................................................................10-5
Global Contract Defaults ...............................................................................................................................10-6
Overview Of Defaulting Levels.....................................................................................................................10-7
Global Contracts Defaults Window Layout...................................................................................................10-8
Global Field Categories and Main Fields ......................................................................................................10-9
Sample Global Contract Default Values........................................................................................................10-10
Guided Demonstration - Global Contract Defaults....................................................................................10-11
Setting Up System Profile Options for Renewal Defaults.............................................................................10-12
Summary........................................................................................................................................................10-14
Setting Up Contract Terms and Contract Templates...................................................................................11-1
Setting Up Contract Terms and Contract Templates .....................................................................................11-2
Objectives ......................................................................................................................................................11-3
Stage Reached in Implementation Sequence .................................................................................................11-4
Agenda...........................................................................................................................................................11-5
Text of a Contract ..........................................................................................................................................11-6
Contract Terms ..............................................................................................................................................11-7
Contract Templates........................................................................................................................................11-8
Overview of Creation and Usage of Contract Terms and Contract Templates..............................................11-9
Creating a Standard Clause............................................................................................................................11-10
Example of Clause Fields ..............................................................................................................................11-12
Creating a Section..........................................................................................................................................11-13
Creating and Approving a Contract Template ...............................................................................................11-14
Adding Sections and Clauses to a Contract Template ...................................................................................11-16
Numbering Schemes for Sections and Clauses..............................................................................................11-17
Creating and Using Numbering Schemes ......................................................................................................11-18
Numbering Scheme Example ........................................................................................................................11-19
Practice - Contract Terms and Contract Templates ...................................................................................11-20
Solution Contract Terms and Contract Templates ..................................................................................11-23
Summary........................................................................................................................................................11-30
Setting Up Events and Renewals ....................................................................................................................12-1
Setting Up Events and Renewals ...................................................................................................................12-2
Objectives ......................................................................................................................................................12-3
Stage Reached in Implementation Sequence .................................................................................................12-4
Agenda...........................................................................................................................................................12-5
Where are Events Used?................................................................................................................................12-6
Overview of Events .......................................................................................................................................12-7
Event Attributes.............................................................................................................................................12-8
Action-Based Events .....................................................................................................................................12-10
Date-Based Events.........................................................................................................................................12-12
Seeded Actions ..............................................................................................................................................12-13
Event Scenarios .............................................................................................................................................12-14
Action-Based Scenario Setup Overview........................................................................................................12-15
Date-Based Scenario Setup Overview...........................................................................................................12-16
Defining Actions............................................................................................................................................12-17
Defining Conditions ......................................................................................................................................12-19
Guided Demonstration - Create Condition for Action Based Action ........................................................12-21
Practice - Condition for Action Based Action ...........................................................................................12-22
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11i Service Contracts Fundamentals Table of Contents

Solution Condition for Action based Action...........................................................................................12-24

Defining Contingent Events ..........................................................................................................................12-26
Renewal Procedures Overview......................................................................................................................12-27
Autoreminder.................................................................................................................................................12-28
Electronic Renewal........................................................................................................................................12-29
Renewal Procedure Setups ............................................................................................................................12-30
Types of Renewal Notification Letter ...........................................................................................................12-31
Defining Renewal Notification Letters..........................................................................................................12-32
Template Sets ................................................................................................................................................12-33
Defining a Template Set - Example...............................................................................................................12-34
Guided Demonstration - Template Sets.....................................................................................................12-35
Make Template Sets Available ......................................................................................................................12-36
Setting Up Autorenewal ................................................................................................................................12-38
Defining an Independent Condition for Autorenewal....................................................................................12-39
Guided Demonstration - Create Condition for Time Based Action...........................................................12-40
Practice - Condition for Time Based Action..............................................................................................12-42
Solution Condition for Time Based Action ............................................................................................12-44
Summary........................................................................................................................................................12-47
Setting Up Profile Options ..............................................................................................................................13-1
Setting Up Profile Options ............................................................................................................................13-2
Objectives ......................................................................................................................................................13-3
Stage Reached in Implementation Sequence .................................................................................................13-4
Agenda...........................................................................................................................................................13-5
Setting Up Profile Options ............................................................................................................................13-6
Profile Options...............................................................................................................................................13-7
Profile Options (continued) ...........................................................................................................................13-21
Summary........................................................................................................................................................13-23

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