Oracle Service Contracts - Part-V (Billing a Contract)

Billing Service Contract

There is a concurrent program ‘Service Contract Main Billing Program’ that needed to run to bill the contract. Once we run the program it will interface data to Receivable to generate invoice.

Note – After Service Contract Main Billing program completes service contract will show as Billed in service contract. It does not mean an Invoice is generated. To generate the invoice we need to run Auto Invoice from Receivables.

Service Contract Manager -> View -> Request -> Submit a New Request -> Choose ‘Service Contract Main Billing Program’ form LOV

Contract Number – Input contract number that you want to bill. You can leave other null.

 Upon completion service contract will be showing as billed. 

Oracle Service Contracts - Part-IV (Creation of Service Contract)

Create a Service Contract

Based on the business requirement we create different type of contracts. In this demonstration we will create a service agreement.

• Responsibility – Service Contracts Manager
• Navigation to Create Service Contracts i.e Launch Pad
• Contract Administration -> Launch Pad

 Launch Pad has 3 sections:

1. Inbox – It gives all the notification that is sent to logged in user related to service contracts.

2. Recent Document – Shows up last 10 contracts that the user is working on.

3. Bookmarked Document – Shows any bookmarked contract that user bookmarked for quick reference.

  Navigate to Tools –>New 

• Choose Operating Unit – This is nothing but the Vendor which will be selling the contract.
• Choose Category – Service Agreement
• Click Create

Oracle Service Contracts - Part-III (Status Transition / Lifecycle)

• Entered – It’s 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 it’s 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.
• 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.

Contd.. How to Create a Service Contract

Oracle Service Contracts - Part-II (Categorization / Structure)

Oracle Service Contract Categorization
Service Contracts has been categorized in 3 categories:-

Warranty & Extended Warranty

As the name suggests it supports two different kinds of services:-

•  Warranty
•  Extended Warranty

Warranty is nothing but the service offer which is offered by the manufacturer / seller to the customer. Warranty is always free of cost and comes while a product is sold from Order Management. There is no way where we can provide warranty on the demand.

Example – Patrick went to market and purchased a mobile phone. It comes with 1 Year Warranty which supports free service of device for one year and replacement of battery if shown poor performance within 6 months.

Oracle Service Contracts - Part-I (An Introduction)

Oracle Service Contracts

Oracle Service Contracts (also referred to as Service Agreements) are contracts that are usually sold to customers to support, repair and/or maintain some product or service that the customer owns. Oracle Service Contracts provides a complete contract authoring execution solution to manage warranties, extended warranties, usage, subscription services etc from its authoring, approval, billing or termination or renewal of entire contract or specific part of the contract.

With Oracle Service Contracts we can

• Sell different types of service to organization or end consumers.
• Define pricing and billing schedules for flexible billing and payment.
• Automate renewals for recurring revenue opportunities
• Simplify change management for existing contracts.

I have divided Service Contracts integration's into two Sections:-

Section – A Lists modules of Oracle Application which provide information to Service Contract. In other terms we can say that these module provides input to Service Contracts

Section – B List outs module of Oracle Application which retrieves information from Service Contracts. In other terms we can say that these module get the input from Service Contracts.

Please find the details of features used by Services Contract from different modules.