Define Coverage Template

Coverage Template decides as what all services will be covered when a user signs a
contract
In order to define a coverage template, navigate to Service Contract Manager >
Setup > Service Offerings > Standard Coverage & give details as shown below

Exception Template: An Exception Template is used to provide coverage in

exceptional scenarios. For e.g. Organization decides to provide service to customers
who are covered under Gold coverage to provide a minimum level of service even
after expiry of contract.
If you want to define this Coverage template as an exceptional coverage template,
check the Suitable as Exception check box.
Warranty: Select this check box if you want the warranty of product to be
continued even after replacement. If selected, you can select this coverage against
a warranty item in Item Master. Inheritance type can be either Full New
Duration or Remaining Duration.
Synchronize Date Installed: If selected, this check box will ensure that Warranty
start date is same as installation date. When a product installation date is changed,
Service Contracts checks for contracts that cover that product. For every service
that covers the product, the coverage definition is checked for warranty coverage
that has the attribute set to allow the installation date synchronization.

If this option is selected, Service Contracts checks whether any service request has
been logged on dates that would be outside the warranty period if it were changed
to start on the new installation date. If no service request exists, the warranty start
date is changed to the installation date. To preserve the original duration of the
warranty, the end date is also changed. The effect of the change is automatically
cascaded to the coverage definition.
Free Upgrade: Select this check box if you want to track this coverage as having a
free upgrade.
Transfer: This field decides as what will be the status of contract if a product is
transferred from one customer to another. It has 5 options:
No Change: There will not be any change in the contract. New Contract is not
required.
Terminate: Subline will be terminated. New contract will not be created
automatically. Termination date will be transfer date.
Terminate if not related: If parties are related, contract will not be terminated. If
not, contract will be terminated with transfer date as termination date.
Transfer: Contract subline will be terminated with termination date same as
transfer date. Status of new contract depends on type of contract
a.) Warranty Contract: New Contract will be created in Active status
b.) Extended Warranty: New Contract will be created in status defined in
OKS: Transfer Status
c.) Service Contract: New Contract will be created in status defined in OKS:
Transfer Status
The contract will have a one-time billing schedule and advance billing.
Transfer if not related: If the new owner is related to the current owner, this
option keeps the current owners contract in force. If the owners are not related, the
current contract is terminated and a contract for the new owner is created. If the
contract transferred is a Warranty contract, then the new contract is created in the
Active status. If the contract transferred is an Extended Warranty or Service type
contract, the contract will have an advance one-time billing schedule and the status
of the contract would be defined by the profile option OKS: Transfer Status.
Now provide business process details as shown below

Click on Always Covered to make start time as 00:00 & end time as 23:59 & all
check box selected
Click on Reaction Times tab & if required, give reaction time details. If Work Through
check box is checked then resolution time will be counted irrespective of Covered
Time. For ex, if this check box is checked & an issue is reported at 1630 Hrs EST &
reaction time is 2 Hrs, then customer is entitled to receive support by 1830 that
evening. Otherwise, Hell receive support by 0930 next working day
You can give other details like Reaction Time, Resolution Time & Resource.
Click on Billing Types. (In order to define the Billing Types, Navigate to Service
Contracts Manager > Setup > Service > Service Activity Billing Types)

For a single Business process, we can add multiple billing types depending upon
business requirement. For ex. If Business Process is Asset Management, then billing
type can be
1.) Asset Maintenance-Material: From time to time, asset requires maintenance. This
requires spare parts. These spare parts come in material category.
2.) Asset Maintenance- Labor: Maintenance activities will require manual efforts.
This manual effort can be billed in Labor category.
We can define other custom billing types as well.
For Up to Amount & % Covered field: Consider an example where Up to Amount is
$500 & % Covered is 50% & a cost of new item (which is replaced in lieu of an
existing item) is $900, then final price will be $450 (as $500 discount will make
price of item to be $400). On the other hand if the price of item is $1200 then final
price will be $700 (as 50% discount will make price to be $600).
In other words, the final price will be either based on Up To Amount or % Covered
field depending on which ever field gives lower discount.
If you enter any one field out of these two, then final price will be calculated based
on that field only.