How to Automatically Create Warranty Contracts (Doc ID 453900.

1)

Warranties, which are offered to customers free of charge, should be created by the
application automatically when the item is shipped to a customer or if the item is created
directly in Install Base.

Required Setup:

- a serviceable item
- a warranty item
- a Bill Of Materials (BOM) to link the 2 items
- a Sales Order for the serviceable item.

Required Steps:

1. Create a serviceable item

2. Create a warranty item
3. Create a BOM to link these two items
4. Create a sales order for the serviceable item
5. Book order, confirm shipping
6. In installed base find the instance created for that item
7. Choose the contract link, but no warranty available

Warranty Item Setup

1. Go to an Inventory or Order Management responsibility and navigate to (N)  Items >

Master items
- Select inventory organization

2.  Enter warranty item details in each of the setup tabs as follows:
Attribute Main
- Unit of Measure - Year
- Item Status - Active

Inventory
- Inventory Item - No
- Stockable - No
- Transactable - No
- Serial Generation - No Control

Bill of Material
- BOM allowed - Yes

Costing
- Costing enabled - Yes

Purchasing
- Purchased - No
- Purchasable - No
Work in Process
- Build in WIP - No

Order Management
- Customer Ordered - No
- Customer Order enabled - No
- Internal Ordered - No
- Internal Order enabled - No
- Shippable - No
- OE transactable - No

Invoicing
- Invoicable Item - No
- Invoice enabled - No

Service - under Service Contracts:

- Coverage template
- Warranty - Yes
- Service Duration value - 1
- Service Duration period - YR 

3. Use Tools > Organization Assignment and select the inventory organizations to assign the
item to.

4. Go to (N)Bills of Material>Bills>Bills
- Choose Inventory organization
- Enter item that you want to use to assign warranty to.
- Go to main tab and select the warranty item in the field component.
This attaches the Warranty as a component in the BOM of the inventory item.

5. Change organization to the master organization.

Repeat steps for master organization.