Oracle Service Contract

Service Contract:
Oracle Service Contract provides a complete contract execution solution to
manage Warranties, Extended Warranties, Usage, Subscription Services as
well as Complex Service Agreements.

Oracle Service Contracts Consist:

1. Header
2. One or More lines
3. One or More Sub Lines

1. Header:

The header is where you enter a brief description and specify the
contract duration.

Header consists of:

a) Parties: Enter information about the customer, including the bill

to and ship to information for the contract.
b) Pricing/Billing: Assign a price list and various accounting rules for
pricing and\billing contracts.
c) Renewals: Define the renewal rules applied during manual or
automatic renewal of the contract.
d) Administration: Define administrative components used to
process the contract, such as the QA checklist, contract groups,
and workflow.
e) Security/Text: Grant contract access by the resource group or
user level.

2. Lines:

Lines list the individual service, usage, and subscription items included in
the contract.
A single contract can have multiple lines.

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There are three types of lines:

a) Service lines:
Cover a broad category of items that can include activities such as
field service, depot repair, call center, technical support, or any
other user-defined business activities.

b) Usage lines:
Charge customers for usage. For example, a photo copier
company might wish to charge for the number of copies made
within a period.

c) Subscription lines:
Cover subscriptions for both tangible and intangible items.
Tangible items include magazines, collateral, or any other physical
item that can be shipped through Oracle Order Management.
Intangible items can be collateral sent via e-mail.

3. Sublines:

Sub lines specify what the service covers or the counters where the
usage is tracked.

It consists of:

a) Service lines:
Sub lines for service lines specify what the service covers. A
service line can cover a party, a customer, a site, a system, a
product, or an item.

b) Usage lines:
Sub lines for usage lines specify the counters where the usage is
tracked.

c) Subscription lines:
Subscription lines do not have sub lines.

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Service Contract Life Cycle:

1. Creating a Contract
2. Approving Contracts
3. Extending and Renewing Contracts
4. Terminating Contracts
5. Managing the Contract Lifecycle

1. Creating a Contract:

You can create a contract manually. In addition, a contract can be

created automatically through Oracle Order Management or by creating
a product that has a warranty in Oracle Install Base.

2. Approving Contracts:

This group of topics explains the contract approval process. Oracle

Service Contracts leverages Oracle Workflow to automate the contract
approval process.

After you author a contract, you must:

a) Submit the contract for approval.
b) Secure approval on the contract.
c) Obtain a signature on the contract.

The Submit for Approval function launches the quality assurance (QA)
check. If the QA check is successful, you can continue the approval
process, which submits the contract to the approval workflow.

3. Extending and Renewing Contracts:

a) Contract Extensions:
Oracle Service Contracts allows you to extend the duration of a
contract or a contract line without having to submit the contract
to the approval workflow.
A contract must be in a status of Active, Signed, or Expired to be
extended.
Contracts in a status of Entered, Cancelled, or Terminated are
examples of contracts that cannot be extended.

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b) Contract Renewals:
The process of renewing a contract involves making a copy of an
existing, active contract at a point intime
The dates are changed to reflect a period of time similar to the
existing contract; beginning on the first day after the existing
contract expires.

4. Terminating Contracts:

You can terminate a contract, a contract line, or a contract

subline. The termination date must fall between the start and end date
of the service or services being terminated.

5. Managing the Contract Lifecycle:

You may need to change coverage, durations, versions You can

streamline and control administrative processes, by leveraging
functionality that manages updates and changes.

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