The Wizard of OKS – R12 Oracle Service Contracts Advanced Features

Mohan Dutt Hyperion Solutions Corporation

Abstract Oracle E-Business Suite Release 12 includes several new features for the Service Contracts module. Enhancements in areas of service contract authoring, contract renewals, online inquiry, install base integration, billing and revenue recognition are discussed among the R12 features introduced. A review of the migration steps when upgrading from Release 11.5.9 or a previous release to Release 12 service contracts module is also discussed. Learn about the advanced features that covers the entire contract life cycle management process. Become ‘The Wizard of OKS’ when you successfully implement R12 service contracts advanced features on your instance! Service Contract Authoring Enhancements Release 12 service contract authoring enhancements include publishing contract for customer review, support for standard coverage definition across contracts, introduction of Oracle E-Tax for service contracts, multi-org access control and enhanced sales credit derivation. Each of these service contract authoring advanced features are discussed in detail in the sections that follow. Publish Contract for Customer Review In Release 12, contract administrators now have the option to publish the contract to the Online Customer Acceptance portal for review. This is the same portal that is used for Online Renewals, so customer can review both new and renewal contracts that are awaiting customer acceptance. A new workflow manages the contract negotiation process as the contract goes through the negotiation lifecycle. Notifications are provided to alert contract administrators and customers when open actions are pending on contracts. A new field called ‘Negotiation Status’ indicates if the contract is published online for customer review, or customer has requested assistance or if the customer has accepted the contract quote or if the customer has rejected the contract quote. The ability to publish any entered status contract for customer review and acceptance expedites contract review cycles and streamlines the contract negotiation lifecycle. Standard Coverage With Release 12, service providers who standardize their offerings can define standard coverage that can be referenced by services sold in contracts. Updates to the standard coverage are automatically applied to all contracts that include that service coverage, making changes in coverage immediately accessible to all downstream processes that need to check entitlements. This approach reduces data volume and improves performance of renewal and contract copy processes. Coverage can still be tailored to suit the specific needs of customers by pressing the ‘Customize’ button when adding the

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© 2007 Mohan Dutt

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If OKS: Use Territories to Default Sales Person (Y/N) is set to Yes. Drop All where user will have to manually enter sales credits and Retain All. renewal process has to derive the salesperson to be used both as a vendor contact and sales credit recipient. Data security is maintained using security profiles that determine the data access privileges associated to responsibilities granted to a user. Enhanced Sales Credit Derivation The renewal process has been enhanced to derive both revenue and non revenue sales credits. When the profile option OKS: Enable Sales Credits is set to either of the ‘Derive’ options. Many reports now also include operating unit as an optional parameter. Service Contracts is enhanced to support integration with the E-Business Tax product. ‘Exemption Control’. When Multi-Org Access Control is implemented.service to a contract. however. Transaction Type is now a mandatory field when tax method associated with the contract is ‘LATIN’. then Service contracts looks to the value entered in OKS: Sales person to derive the vendor contact/sales person. viewed and accessed. The values available are Derive for revenue type. In Release 12. users can only access contracts authored in operating units that map to the security profile assigned to their responsibility. entitlement searches return search results across all operating units. Oracle E-Tax Introduction Oracle E-Business Tax is a new product that uniformly delivers tax services to all Oracle EBusiness Suite business flows. Two profile options determine how the salesperson is derived. OAUG Collaborate 2007 Conference © 2007 Mohan Dutt 2 . As an exception. Service Contracts now also provides the ability to copy coverage templates to ease the process of setting up new offerings. Derive for Revenue Type and Retain Other. If set to No. OKS: Enable Sales Credit profile option has been enhanced to include additional options. Users are no longer required to switch applications responsibilities when processing transactions for multiple operating units. All concurrent programs are restricted to process only contracts authored in operating units that map to the security profile assigned associated with the responsibility from which the concurrent program is initiated. process and report on data for an unlimited number of operating units within a single applications responsibility. users are restricted from opening contracts that they do not have access to. The ‘Tax Code’ is replaced by ‘Tax Classification Code’ and ‘Tax Inclusive’ checkbox is no longer displayed in authoring form. ‘Exemption Number’ and ‘Exemption Reason’ fields are disabled when tax method is ‘LATIN’ with a new QA Check process introduced that ensures null values for these fields. Oracle Service Contracts leverages the Multi-Org Access Control model to allow users to author contracts and contract templates in multiple operating units without switching responsibilities. The authoring form is changed with the ‘Tax Status’ field is replaced with ‘Exemption Control’. Multi-Org Access Control (MOAC) Multi-Org Access Control enables companies that have implemented or implementing shared services operating model to efficiently process business transactions by allowing them to access. sales person will be derived from Territory Setup. The data security is enforced in all forms in which contracts can be queried. namely OKS: Use Territories to Default Sales Person (Y/N) and OKS: Sales person.

party. Notify salesrep maps to manual. There are 5 stages in the renewal negotiation lifecycle. Workflow notifications will alert users of actions that they need to take. the process will check whether it can be qualified for online renewals. New approvals options will enable administrators to support various approval scenarios – from manual to fully automated approvals. improvement to the online service contracts renewal portal. The renewal workflow will manage each of the stages of the negotiation cycle. Building flexible approval rules using Oracle Approvals Management (AME) for the renewal workflow has been also introduced. There are three options on how to present the quote to the customer . party or contract level and has four values – Manual. The fourth stage is contract approval where once a contract is submitted for approval. Evergreen and Do Not Renew. The fifth stage is when the contract has been approved. Renewal Negotiation Lifecycle Management In R12.Service Contract Renewal Enhancements Release 12 contract renewal enhancements include introduction of Renewal Negotiation Lifecycle Management. Each of these service contract renewal advanced features are discussed in detail in the sections that follow. org. along with the approval OAUG Collaborate 2007 Conference © 2007 Mohan Dutt 3 . The negotiation status at the contract header level will allow administrators to monitor a contract during negotiation. The second stage is notifying the customer that a renewal contract has been created and is awaiting approval.print a hard copy of the quote and mail or fax it to the customer. If both evergreen and online renewal checks fail. introduction of administrator workbench. the contract will be renewed with the renewal process derived from traversing the contract. org and global hierarchy. the system will enable the flow of a renewal contract through each of these stages. email the quote to the customer using the email quote feature in the administrator workbench or publish the quote online for online customer acceptance. submit for approval maps to evergreen. online or evergreen. The third stage is customer acceptance during which the contract is in the customer’s queue for acceptance. all renewal contracts will be part of the renewal negotiation workflow. Renewal Type attribute has been renamed in R12. Contract Status changes to ‘Active’ or ‘Signed’ and negotiation status changes to ‘Complete’. The process uses the template set layout to determine the format of the quote and cover letters generated. an auto-reminder notification to customers for accepting renewal quotes and improved communication templates. Online. electronic renewal maps to online. Customer reviews renewal contract and accepts or declines. workflow uses Oracle Approvals Management (AME) to derive the contract approver and routes the contract to that approver. The process will first try to qualify the contract as evergreen based on process or threshold values If the contract does not qualify as evergreen. The new attribute: Renewal Process. The first stage is to determine renewal process which can be either manual. can be set at the global. With the new workflow. the contract is signed.

The workbench provides the following information in bins that can be personalized by the administrator to improve productivity. For all three types of contract renewals. publish contract online to customers. For online Contracts. workflow will send alerts and notifications to internal and external users. Do not renew has not changed. pending sales person assistance and pending internal approval. The auto-reminder process will flag the contract with a reminder sent flag. Using the ‘Service OAUG Collaborate 2007 Conference © 2007 Mohan Dutt 4 . the customer will receive an activation confirmation email. the process will select all contracts for which quote has been published online For manual contracts. Subsequent reminders will be send automatically by the process based on the dates specified in the template set layout. renewals. Contract Administrators also have the ability to disable or enable reminders for contracts that they do not wish to send reminders to customers. A new setup attribute. such as the image of a PO or check. My In-Process Contracts is a configurable bin that provides a list of views on open service contracts assigned to the administrator such as all in-process contracts. the customer will also get an acceptance confirmation email. manage reminders and notifications and also initiate communication with customers via email. The user has to initiate the process by sending the first reminder. approval flag. active contract maps to evergreen without approval. follow-up actions. Sales reps can also choose to publish newly authored contracts or renewal contracts under negotiation to customers for online acceptance.required attribute. The customer will get several notifications during the process. The notifications bin provides a list of open notifications that require attention from the administrator. reminder sent. has been added to the global contract defaults to handle various types of internal approval scenarios. When the contract is approved after internal approval. run quality check to validate contract information. Once the quote is accepted. open contract in authoring for editing. Self-service customer account and password maintenance is also supported. high volume contracts can be automatically presented to customers through a web-based user interface for online acceptance. This is a required field if renewal process is defined. Enhanced Auto-Reminder Process With the R12 enhancements. Customers can upload a payment document. Administrator Workbench A new Service Contracts administration workbench offers advanced search capabilities and display options to better track renewal opportunities. Auto-reminder process can be used for both manual and online contracts. Improvements to Online Renewal Portal Several usability improvements are included in Release 12 to improve the customer experience during online acceptance. The actions that can be performed from the administration workbench are view followup actions on contracts. The portal can also capture cancellation reasons accompanied by customer comments and customer interactions such as ‘Request Assistance’ messages and. online quotes. contract status will be used to send reminders. pending quotes. Low value. submit contract for internal review. The customer will get a quote letter when the contract is renewed.

service line or covered level attributes and allows to display search results as contracts. Enhanced Communication Templates Service Contracts integrates with XML Publisher to support user-defined layout templates for customer communication documents. run a QA check. HTML Contract Search Contract Search consists of new HTML Search pages to support search by contract. Standard Approvals Management features such as rules based approval routing and definition of approval groups are supported. Each of these service contract search and inquiry advanced features are discussed in detail in the sections that follow. The HTML pages OAUG Collaborate 2007 Conference © 2007 Mohan Dutt 5 . The auto-reminder process will look at this status along with date parameters to qualify contracts for which reminders have to be sent.Contracts Auto-reminder Program’ request form. the standard contract approval workflow integrates with Oracle Approvals Management to drive the approval process. From the search results. Service Contracts offers a user-friendly. New seeded Document Types are available when defining communication templates. Activation Confirmation and Cancellation Letter. the contract status can be selected on this request. or can click a link out to the simple or advanced search pages for more complex searches. all the rows in the search results can be easily exported with one click action to an excel spreadsheet for the purposes of doing trend analysis. contract administrators or renewals analyst can select a set of contracts and can perform some common administrative actions on contracts. “Service Lines” or “Covered Levels”. which displays most commonly viewed attributes of a contract. Further. HTML-based view of contracts that can be easily personalized to suit the needs of a specific business flow. Users also have the option to specify whether document templates should be used for administrator-managed contracts or for online acceptance contracts. The ‘Simple Search’ & ‘Advanced Search’ pages provide contract administrators with the option to display search results as “All Contracts”. users also have the option to view details of a contract. Submit for Approval. like publish or print a quote. can be easily personalized by adding result attributes from a wide range of hidden attributes provided out of the box. service line or covered level in HTML. Contract Administrators can now define whether a set of document templates is used for new contracts or renewal contracts. service lines or covered levels. View Service Contract Details in HTML In Release 12. These are: Acceptance Confirmation. enable or disable reminders and so on. A user can perform a quick search from the administrator workbench. In addition to viewing search results at different levels. User defined Document Types are also supported. Search and Inquiry Enhancements Release 12 service contracts search and inquiry feature introduces a new HTML search features for contracts as well as viewing service contracts detail using drill-down from a HTML interface. The results set. Flexible Approval Rules In Release 12. “In Process Contracts”.

The pages include contract header. – Jan 15th rather than Jan 1st). end of duration. revenue contingencies for customer acceptance that are applied to goods sold in Order Management are now applied to services sold to cover those goods. The partial period revenue recognition feature enables prorated revenue recognition based on the number of days in each accounting period. Oracle Receivables provides support for partial period revenue recognition. then partial period at the end. Valid values are Day. Revenue is deferred for service ordered in both Order Management and Service Contracts. Month. billing or termination duration when service starts in the middle of a period (e. interactions. Service Contracts integrates with Oracle Receivables to enable partial period revenue recognition for services billed from service contracts. If ‘Month’ is specified as the default period. ‘Calendar Month Start’ counts full periods based on full calendar months that span the duration. or at both beginning and end of the service duration. billing and termination amounts are calculated for partial periods. then month is used as the basis for calculating partial periods for all pricing. the IB mass update workbench. credit card encryption for payments and lock for billed counter readings. Notes and attachments. Quarter. The partial period can occur at beginning of duration. Period Start – Allows a business to select where the partial period calculation occurs within a pricing. Partial Period Billing Businesses require flexibility for defining how pricing. ‘Service Start’ counts full periods from service start date. Partial Period Revenue Recognition In Release 12. Billing and Revenue Enhancements Release 12 service contracts billing and revenue recognition enhancements include support for partial period billing and partial period revenue recognition. service and usage line types. billing and termination calculations. and contract terms are also be available as shortcuts from these pages. Period Type – This can be Fixed (duration of 30 days for a Month. Accounting rules can also be defined to recognize revenue evenly across all full periods in a schedule while only prorating recognition for partial periods that fall at the beginning or end of a schedule. Deferred Revenue Management Event-Based Revenue Management in Oracle Receivables allows users to define revenue deferral reasons or contingencies and corresponding revenue recognition events. Half-year and Year. Acceptance contingencies associated with an item instance are OAUG Collaborate 2007 Conference © 2007 Mohan Dutt 6 .g. the IB instance details page. 90 days for a Quarter and 360 days for a Year). deferred revenue management. Service Contracts now provides the following options for partial period calculations: Default Period – Allows a business to define a default period for pricing and billing. or Actual (based on actual days in the default period).are accessible from the service contract administrator workbench. Billing schedule and billing history is available at all levels. the sales online customer details page and the daily business intelligence portal for service contracts. Each of these service contract billing and revenue recognition advanced features are discussed in detail in the sections that follow. In Release 12. service line and covered product level information for subscription.

customers sometimes elect not to maintain one or more services on the contract. only the last 4 digits are visible. When canceling a service line or covered level. Similarly. The credit card number can be masked in all user interfaces. with controlled access. instance mass updates specifying impact to service. the impact of the changes to service contracts is not visible to the install base users. quantity updates and change in ownership that impact Service Contracts providing service on these instances. users can update the status of specific service lines or covered levels to indicate that the customer has declined service for a portion of the contract. creating streamlined instance and terminating usage when item instance terminates. Users can change status for a service line or a covered level to any status that maps to status type ‘Entered’ or ‘Canceled’ by invoking the change status form from the Tools menu in the authoring form. Install Base Integration Enhancements Release 12 service contracts integration with install base instances have been furthered enhanced with support for line level cancellation. If a service line is canceled. is now available from Install Base OAUG Collaborate 2007 Conference © 2007 Mohan Dutt 7 . Currently. Line Level Cancellation When a contract is renewed. Revenue for services on other covered levels. users are prompted to enter a cancellation reason. Credit Card Encryption In Release 12. canceling a contract results in the cancellation of all service lines and covered levels on the contract. Lock Billed Counter Readings In Release 12. View Impacted Contracts. viewing impacted contracts before instance update. Each of these service contract install base integration advanced features are discussed in detail in the sections that follow. Both the service line status and the covered level status are now displayed in the authoring form. all of the associated covered levels are canceled as well. In Release 12. Service Contracts provides ability to create/edit credit cards from authoring form where the credit card number can be encrypted when stored. The process for selecting credit card as a payment method is enhanced as follows to align with this centralized approach with Credit card attributes are now stored in a central repository. splits. Install Base allows users to make corrections to counter readings. View Impacted Contracts Install Base users can make updates such as terminations. Oracle Applications provides a centrally maintained and secure process to capture payment information. A new HTML page. subscriptions and usage is not impacted by contingencies applied to goods associated with those services. Oracle Service Contracts now integrates with Install Base to lock counter readings that have already billed in Service Contracts.automatically applied to service revenue associated with the item instance when it is covered in a Service Contract as a Covered Product.

Create Streamlined Item Instance In Release 12. install base administrators are now able to review the service contracts impacted by a mass termination batch. install base instance terminations also terminate associated usage lines. Terminate Usage when Item Instance terminates Users can enter RMA orders or update Install Base directly to terminate an item instance. The user has a choice to proceed with the desired change. This prevents erroneous invoices for usage lines that invoice based on minimum or estimated periodic consumption in the absence of actual counter readings. external reference number. Once created.that shows the service contracts impacted by an install base transaction. Service Contracts introduces several improvements to streamline and simplify the process for creating and covering new item instances. Service Contracts follows the new architecture where the rules and time values generic data structures have been eliminated. or cancel and revert back. update bill to and ship to details and indicate whether notes and attachments are copied for the transferred service. For mass transfers of ownership. installation date and so on. install base administrators are now able to review impacted service contracts and indicate whether service covering transferred item instances remains in effect. is transferred to a new owner or honors the transfer terms defined in the service coverage terms. select a termination reason and indicate whether a credit is issued to the customer when service is terminated. better leveraging OAUG Collaborate 2007 Conference © 2007 Mohan Dutt 8 . In Release 12. IB Mass Updates – specify impact to service Install Base administrators can select any number of item instances and perform a mass change to update item instance attributes such as owner. For mass update of installation date for a selected group of item instances. In Release 12. Oracle Service Contracts uses a set of Rules and Time Values tables to store contract attributes that were not included in base Oracle Core Contracts or Oracle Service Contracts header and lines tables. Contract administrators can now open a new forms UI directly from the authoring form and quickly enter key attributes such as serial number.10. Release 12 introduces several improvements to the Mass Update process in Install Base to allow users to view or determine the impact of mass updates on associated service contracts. install base administrators are now able to see a list of warranty contracts that are impacted by the change to item instance installation date. administrators can select billing terms. Terminating an item instance also terminates any service lines that cover the product in Service Contracts. OKS R12 Upgrade Steps Prior to Oracle Applications 11. quantity and UOM. If service on the original contract is to be transferred. status.5. For mass terminations. Service Contracts tables now stores the relevant attributes in specific OKS/OKC tables and columns. installed date and location attributes to create one or more item instances. This storage approach resulted in data volume and performance issues for some customers. the new item instances are automatically added to the contract as covered products. is terminated.

Then one would reprocess errors and synchronize new records before and after the Release 12 upgrade scripts are run (See Fig. A – OKS R12 Upgrade Steps) Fig.Oracles database technology and delivering higher performance with lower data volumes. This would be followed by apply pre-upgrade data model changes and applying rules bulk data processor. If more than OAUG Collaborate 2007 Conference © 2007 Mohan Dutt 9 . This would introduce Service Contracts Validate Rule Data concurrent program and Rules Migration Utility form as a result of the patch. A – OKS R12 Upgrade Steps One is required to apply patch # 4684603. The upgrade steps to Release 12 Service Contracts include assessing the volume of service contracts data and thereafter validating and correcting data types. One is required to check the number of lines in OKC_K_LINES_B.

otherwise run the Release 12 upgrade scripts if the volume is smaller. One would submit Service Contracts Reprocess/Synchronize rule data concurrent program and then View and correct errors. The rule attributes are migrated from OKC_RULES_B table to OKC_K_HEADERS_B.500. OKS_K_HEADERS_B. OAUG Collaborate 2007 Conference © 2007 Mohan Dutt 10 . in Rules Migration Utility Form. the processing encounters any data type validation error. In case. OKC_K_LINES_B. OKS_K_LINES_B and OKS_K_LINES_TL.000 then one should follow the pre-upgrade steps. This is followed by applying patch # 5212775 which processes large volumes of rules data efficiently using bulk data processor. the entire transaction set is rolled back and would be required to be correct. This would be conducted before and after running the Release 12 upgrade scripts. The next step would be to apply patch # 3335269. If there are any processing errors. the error data is stored in OKS_RULE_REPROCESS. if any.

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