Sunday, December 15, 2013

Service Contract Setup - Part : 5

Setting Up Service Item

Before we start on setting up Service Items in inventory lets spend few minutes on understanding what is Service Item and what other items in context with Service Contract available / used.

Broadly we can classify item into two categories 
  1. Serviceable Item
  2. Service Item
Serviceable Item : Serviceable items that are covered under a contract. Its the actual product that customer purchased and purchased coverage plan for service.

Service Item : Service items are that offers service on actual product. It determines what level of service will be offered to customer by looking at the coverage template associated with it. Service Items are further divided into four types.
  • Service Item - These items will be used in service contract when contract type is 'Service Agreement'. 
  • Warranty Item - Warranties are services that are given to the customer free of charge. These items will be used when contract type is 'Warranty and Extended Warranty'. Please note that warranty contracts can not be created manually. It automatically gets created when we ship the product from Order Management considering warranty item is associated in Item BOM.
  • Subscription Item - These are used in service contracts when contract type is 'Subscription'. It will be used in cases where an organization is offering subscription service like monthly magazine.
  • Usage Item - Usage item are used when service is offered based on the usage of a particular service. Best and most popular example is Photocopier. Many organization rent Photocopier and based on the number of copies printed in a given period, it will be charged.

Define Service Item

  • Navigate to Inventory -> Items-> Master Items
  • Choose your master organization. For me its 'Vision Operations'.
  • Enter Name of the Item
  • Enter a description
  • If your organization have already created an item template for service item, apply the template to save time, else follow the details to create it manually.
  • Main Tab
    • Item Type : Choose Item Type (e.g Service Program / Warranty / Service Contract etc.).
    • Unit Of Measure : Choose a primary UOM. Please note that we setup service as Time UOM like Year / Month not the quantity UOM like Each.
    • Status : Select an item status which is allowed to be used and not obsolete.
  • Order Management Tab (Select Below Check Boxes)
    • Customer Ordered
    • Customer Orders Enabled
    • OE Transactable
  • Invoicing Tab (Select Below Check Boxes)
    • Invoiceable Item
    • Invoice Enabled
  • Service Tab
    • Contract Item Type - Select an item type. Since we are creating a service item we selected Service from list.
    • Duration - A default duration 
    • Period - A period that goes with the duration. Please note that duration an duration period are used in Oracle Quoting for passing service duration for the service item.
    • Coverage Template - Choose coverage template that goes with the service item which you already defined.
  • Save.
See Also:
 - Defining Subscription Item
 - Defining Usage Item
 - Define Serviceable Item

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