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Fernando Salazar

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Service Contract
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Oracle Service Contracts provides a complete contract
authoring and execution solution to manage warranties and
extended warranties, usage and subscription based services, as
well as complex service agreements.
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Key features of Oracle Service Contract
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Service Contracts Administrator Workbench
Workflow-driven contract negotiation
Online Acceptance Portal for customer review of published
contracts
PCI (Payment Card Industry) compliant security and
encryption for credit cards
Partial period billing and revenue recognition
Flexible approval rules with Oracle Approvals Management
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Elements of Oracle service contract
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Header is where you enter a brief description and specify
the contract duration. You can default values from the header
of a contract down to the lines and, if applicable, to sublines
as well.
Lines list the individual service, usage, and subscription
items that are included in the contract. A single contract can
have multiple lines.
Sublines specify what the service covers or the counters
where the usage is tracked. You can access this information
from the Pricing/Products subtab of the Lines tab.
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Line types
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1) 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. Each service
line can cover one or more items that a customer owns.
2) Usage lines: Charge customers for usage. For example, a photo
copier company might wish to charge for the number of copies that
are made within a period.
3) 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 a software.
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Service Contract Categories
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Service
Agreement
Service Line
Usage Line
Subscription
Agreement
Subscription
Line
Service Line
Usage Lne
Warranty &
Extended
Warranty
Warranty Line
Extended
Warranty Line
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Service Contract Status Flow
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Entered Cancelled
Signed
Active
Expired
QA Hold
Terminate
Seeded Statuses
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Entered Its the initial status when a contract is authored, it can
also refer this as Draft where we are just putting details on a
contract.
Cancelled A contract can be cancelled if its not needed to work
on. We can only cancel a contract when its status is Entered.
Signed Once a contract is approved and submitter signs the
contract its status becomes Signed. In real scenario its very rare that
we see the status for a contract because it move to active as soon as
its signed. If the start date of the contract is future dated, then it will
be in Signed status and will move to Active once start date equal to
system date.
Active Upon approval and signing a contract is moved to Active if
start date of the contract is back dated or equals to system date
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Seeded Statuses
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QA Hold Once a contract is in Signed/Active status and if it
needed some change we open the contract for update. Once we open
the contract for update it will move to QA Hold status. After making
the required changes perform QA check that will move it back to
Signed/Active.
Expired Once contract end date passes the system date it will
move to Expired status.
Terminated A contract will move to Terminated status if we
terminate the contract in between its active period. Upon
termination it may or may not generate credit memo that is based on
the contract terms. If the contract is in QA Hold it cannot be
terminated. Also once a contract / line / sub-line is terminated we
cannot revert it back, so precaution needs to be taken before
termination.
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Order
Management
Install Base
Service
Contracts
Accounts
Receivable
Shippable Items via inventory interface
AutoInvoice
Service Contract
Main Billing
Service Contract
Order Capture
Inventory
Shippable Items
Invoice
View & ref instance
Trans updates
SFM event queue
The application uses the Service Fulfillment Manager (SFM) event queue for
communicating transactional updates from Oracle Inventory to Oracle Installed Base
Creates contract in SC
Simplified Standard Out-of-the box Oracle
Application Flow
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Order
Management
Service
Contracts
Accounts
Receivable
AutoInvoice
Service Contract
Main Billing
Service Contract
Order Capture
Invoice
Concurrent program #1(11i)
"Service Contracts Order Capture Integration"
1.Get the data from ASO queues.
2.Inserts data into OKS_REPROCESSING.
3.Launches the Reprocess order concurrent program
ASO
Queue
Concurrent program #2 (11i)
"Service Contracts Order Reprocessing Program"
creates contracts by picking the data from the
OKS_REPROCESSING table.
Service Contract
Order
Reprocessing
OKS_Reprocessing
11i
Creating Service Contracts from Order
Management Flow
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Order
Management
Service
Contracts
Accounts
Receivable
AutoInvoice
Service Contract
Main Billing
Invoice
R12
Service Contract
Order
Reprocessing
The R12 Order Capture integration has the following changes:
OM places the data directly into OKS_REPROCESSING table.
Users directly run "Service Contracts Order Processing Program" for the
creation of contracts.
There is no Service Contracts Order Capture Integration concurrent
program.
If upgrading to R12, you need to run the Service Contracts ASO Queue
Migration to get the data from ASO to OKS after the upgrade.
OKS_Reprocessing
Creating Service Contracts from Order Management
Flow

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