Service Contract Life Cycle

Oracle Service Contracts enables you to manage the entire contract life cycle, including contract creation, renewal, and termination.  The major activites of a service contract life cycle consists of

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

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 Installed Base.

In R12, You can author service contracts in multiple operating units without changing responsibility. You must select an operating unit for each contract.

Approving Contracts
Oracle Service Contracts leverages Oracle Workflow to automate the contract approval process. After you author a contract you must:
• Submit the contract for approval.
• Secure approval on the contract.
• Obtain a signature on the contract.

The Submit for Approval function starts 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.
Note: The standard contract approval workflow integrates with Oracle Approval Management Engine (AME). Oracle Service Contracts supports standard AME features such as rules based approval routing and definition of approval groups.

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, Canceled, or Terminated are examples of contracts that cannot be extended.

When you extend the duration of a contract, the contract lines are automatically extended, as long as the end date of the line is the same as the end date of the contract. If the end date for the line is different from the end date for the contract, the line will not change if the contract is extended. This functionality ensures that a service with a duration that, is deliberately different from the contract duration, retains its intended duration.

Contract Renewals
The process of renewing a contract involves making a copy of an existing, active contract at a point in time. The dates are changed to reflect a period similar to that of the existing contract, beginning on the first day after the existing contract expires. Other attributes of the new contract may also be changed, such as pricing.
Contracts can be renewed either manually or automatically. You can manually renew a contract from the Contract Navigator, or your administrator can set up the application to automatically submit a contract for renewal.

Terminating Contracts
You can terminate a contract, a contract line, or a contract subline. The termination date must fall between the start date and end date of the service or services being terminated. You cannot terminate a service or contract that has already been terminated. For example, if you have a future date terminated, you cannot change it to an earlier date.

You can terminate multiple contracts and contract lines at one time.
During the termination process the application calculates a credit amount. You can:
• Override the credit
• Provide a full credit
• Suppress the credit

Managing the Contract Life Cycle
This group of topics explains how you can manage the contract life cycle.
After the contract authoring process is complete, you must manage your contracts on an ongoing basis. You may need to change coverages, durations, versions, and other aspects your contracts.
You can streamline and control administrative processes, by leveraging functionality that manages updates and changes.


Oracle Applications Fusion Cloud - Inventory

Oracle Cloud/Fusion Procurement training will help you develop the fundamental skills required to set up and use the Procurement module. This training covers all the tasks, setups, forms and reports used in Procurement and related modules