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When billing, the system moves the entire billed amount to long-term revenue. When you use amortization, the
system moves anything from today's date plus twelve months to short-term revenue. The system moves anything
from the beginning of the contract through the end of the amortization period to recognized revenue.
For service contracts, the Amortization Process is a method of moving long-term revenue to short-term revenue,
and then short-term revenue to recognized revenue.
Short-term revenue is contracted within a 12-month period. Recognized revenue is contracted from the
beginning of the contract through the end of the amortization period.
Amortization enables you to manage revenue by moving long-term revenue to short-term revenue, and then to
earned or recognized revenue. This system only amortizes billed
revenue. When billing, the system moves the entire billed amount to long-term revenue.
When you use amortization, the system moves anything from today's date plus twelve months to short-term
revenue. The system moves anything from the beginning of the
contract through the end of the amortization period to recognized revenue.
In Oracle EBS , you don't have any out-of-box feature , you can customize, in order to get , which consist of two
process , identifing the new schedule line and GL journal line.
This post is to discuss the integration of various modules of e-Business Suite from an Oracle Service Contracts
perspective. It should give an idea to consultants who wish to determine dependencies and to understand how
the different modules communicate data between each others.To start , you can memorize this figure as below.
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With Inventory
Manages items associated with Oracle Service Contracts
agreements and contracts: services, usages, warranties,
TIBCO Jaspersoft subscriptions, and serviceable items
With Advanced Pricing
O cial Supplies the information to price the services and usages
sold on the contract.
Free 60-Day Trial Download. With Order Management
Make Faster Decisions by Bringing Actionable
Raises sales orders from which warranties and extended
warranties are created.
Data Inside Your Apps. Download Now Inventory is used to define serviceable products and service
items (warranties and extended warranties)
With Quoting
Provides quotes for sales orders
With Receivables
jaspersoft.com
Service Contract is integrated with the Oracle Receivables
module for generating Invoices. In the Receivables we have
to define Transaction sources and associated Transaction
types which will be used for generating Invoices from Oracle SC. In the Service Contract we have
to use the Accounting Rule, Payment Terms, and Invoicing Rule that will be used for the respective
Contracts.
With Bills of Material
Associates warranties with serviceable items
With Install Base
Provides details of trackable items and the tracking of counters.
With CMRO (Complex Maintenance, Repair, and Overhaul)
Provides details of preventive maintenance programs, that may be associated with service contracts.
With TeleService
Manages service requests
Retrieves contract details for a customer such as account, end date, status,contract type& number on
all of their contracts.
Looks for the preferred engineers for a particular service.
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Has visibility to coverage levels & times, reaction & resolution times for coverage, billing rates and
types for a specified coverage.
With iSupport
Provides customer access to service contracts to view entitlements, preferred technician, response
and reaction times via self service mechanisms
With Depot Repair
Provides details for repairs, exchanges, replacements, and loaners, which may update the contract
coverages.
Has visibility to coverage details.
With Field Service
Provides details about service and repairs to be carried out in the field.
Has visibility to coverage details
A Service Contract is a mutual agreement between the customer and the supplier for the products and services
being purchased. Oracle allows us to create the following types of Service Contracts:
Warranty
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Extended Warranty
Service Agreement
Subscription.
Oracle Service Contracts is the module that provides functionalities to manage above listed contract the simplest
way possible.
Oracle does not provide any interface tables and concurrent programs to import the legacy contract data. The
only way to import them is through these API's. All the above types of contracts can be created with the same
API.
The OKS_CONTRACTS_PUB is the main public API provided by the Oracle Contracts for Service
application. The individual APIs are defined as procedures in this package
The OKS_CONTRACTS_PUB is the public API provided by the Oracle Contracts for Service application.
Within this package, other APIs are specified as independent procedures. Following are the key APIs included in
OKS_CONTRACTS_PUB:
Service contracts (also called service agreements) are contracts that are usually sold to customers to support,
repair and/or maintain some product or service that the customer owns.
These contracts often take advantage of the ability to bill on a recurring basis either monthly,quarterly or
annually and can give the customer the ability to pay for their services in advance or in arrears of the period of
service.
The most important Process in service Contract is Authoring. Let's explore in details..
Authoring
By using Oracle Service Contracts, you can author an original contract, define a contract from a
template, or copy another contract. Business rules can be set up to force contracts to go through an
approval process to ensure that the contracts are accurate and satisfactory. A quality assurance (QA)
check is invoked before the approval workflow is begun. If the QA results show an error,then
approval cannot proceed.
Service Contract provide and Facilities the steps required of the Author to Sign Service Contract .
The Flow Consist of these steps:
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1. Its start with Discussion with customer and the vendor for options.
2. The contracts administrator creates the new contract, by using a template, the copy function,
and so on.
3. The contracts administrator authors the contract.
4. The contract is submitted for online quality assurance check to make sure that all information
is accurate and complete.
5. The contracts administrator submits the contract to the manager for approval.
6. The contracts manager approves the contract.
7. The contracts administrator sends the contract to the customer who then approves and signs it.
8. The contracts administrator signs the contract.
9. Once both the vendor and the customer have signed the contract, the contract becomes active
and the customer is delivered the contract items according to the terms and conditions of the
contract.
This Contracts for Service business flow includes the following steps as mention below:(refer to Fig 1 )
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1. Create Quote: In the Quoting module a quote for a customer is created. The quote contains serviceable
items, which are linked to a warranty. In addition to this, the customer may have ordered extended
warranties for the items.
2. Create Sales Order: Based on the quote a sales order is created in Order Management. The sales order is
pick released, ship confirmed, and fulfilled.
3. Update Install Base: The ship confirmation updates the customers Installed Base.
4. OKS Contract: As the customer ordered items, which have a warranty attached to it, a warranty contract
gets automatically created in Contracts for Service. The same for the ordered extended warranties: A
contract is created in Contract for Service that captures the extended warranties.
5. Author OKS contract: Alternatively a Service Contract for the extended warranties can also be created
manually.
6. Create Invoice: The Main Billing Process in Contracts for Service creates regular invoices for the service
offerings in the contract based on the used billing stream information in the contract.
7. Service Request: After a certain time the customer got problems with one of the purchased products and
enters a service request against the product.
8. Reaction/Resolution Time: The system checks the reaction and resolution times which are part of the
Service Contract for this product and sets Respond By and Resolution By dates in the service request.
9. Problem Resolution: The customers problem got resolved within the service cycle, such as Depot Repair
or Field Service, depending upon how it is been setup.
10. Charges: During the resolving process the service department charges for expenses, used materials,and
labor costs.
11. Apply Entitlements: Depending on the customers entitlement, which are part of the Service Contract for
the repaired product, the customer gets reductions on the expense, material, and labor costs.
12. Submit to Order Management: The reduced charges are submitted to Order Management.
13. Create Invoice: The Order Management fulfillment process creates an invoice for the charges of the
service requests.
14. Close Service Request: As the customers problem is resolved and the charges are passed to Order
Management, the service request can be closed.
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The QA Check is an automated process that verifies the contract contains the required and correct information.
A QA checklist consists of one or more processes (PL/SQL Procedure, PL/SQL Package and Approval
Workflow) which are executed at the time of launching QA check. Results of the QA check are returned to user
on a screen immediately to troubleshoot any issue with Service Contract Authoring and maintenance.
Oracle provides a seeded QA check list which is also a default one for service contracts. In addition to the
seeded QA checklist, we can define other checklists for Service Contracts to meet the specific business needs.
The seeded QA checklist is executed automatically for any contract, even an additional QA check list is created
for the contract.
1. Contract Authoring: After entering all the required information in the Service contract authoring form
contract needs to be submitted for a contract approval workflow. On the Summary Administration tab of
Service Contract Authoring Form, there is a Submit button that launches the QA check and then allows
the contract to progress through the Approval workflow if it passes.
2. Contract Maintenance: Contract maintenance includes various types of contract changes such as
addition or termination of a service or usage line, changes in billing schedule, price changes etc. QA check
is required in order to validate the consistency of the contract after every change. At this stage QA check
is launched from the Actions menu.
Launch a QA check
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In OKS, A billing schedule(or typically consider Billing agreenment schedule) determines when the customer is
billed for the services they receive.
Therefore you must specify billing schedules for each contract that you author in Oracle Service Contracts.
Those Contract indirectly created in Oracle Order Management need not to create a billing schedules again.
Typically billing schedules can be defined at the contract header, the contract line, or the subline level.
In order to initiate and complete the billing process for a month, you must run the following concurrent
programs:
1. Service Contracts Main Billing :This program is run from OKS side. It generates a log file of the total
value processed, total value successful, and total value rejected for billing. According to pricing attributes
set up in the contract and billing schedule, detailed
transactions are generated in the Service Contracts billing interface table.
2. AutoInvoice Import Program :This imports the billing transactions from the Service Contracts Main
Billing Program into Oracle Receivables and generates the invoice details.AutoInvoice is used to import
Transaction Batches and Typically used transaction source as OKS_CONTRACTS.
3. Service Contracts Fetch Receivables Info for Billing :This concurrent request obtains the invoice
number and tax from Oracle Receivables, and updates the contract billing history. This information is
displayed in the contracts billing history.
Line Creation : You creating lines you can this api OKS_CONTRACTS_PUB.CREATE_SERVICE_LINE
Sub Line Creation : This is important when underline item is IB track able then we can create covered
product sub line with IB link established. API you can use is:
OKS_CONTRACTS_PUB.CREATE_COVERED_LINE
okc_contract_pub.update_contract_header
( p_api_version => 1.0,
p_init_msg_list => okc_api.g_true,
x_return_status => l_return_status,
x_msg_count => l_msg_count,
x_msg_data => l_msg_data,
p_restricted_update => okc_api.g_false,
p_chrv_tbl => l_chrv_tbl_in,
x_chrv_tbl => l_chrv_tbl_out);
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okc_contract_pub.update_contract_line (
p_api_version => 1,
p_init_msg_list => OKC_API.G_TRUE,
p_restricted_update => OKC_API.G_FALSE,
x_return_status => l_return_status,
x_msg_count => l_msg_count,
x_msg_data => l_msg_data,
p_clev_tbl => l_clev_tbl,
x_clev_tbl => l_x_clev_tbl
);
oks_bill_sch.cascade_dates_sll
(
p_top_line_id => <OKS Contract Line ID>,
x_return_status => l_return_status,
x_msg_count => l_msg_count,
x_msg_data => l_msg_data
);
DEFAULTING ATTRIBUTES FROM LINES TO SUBLINES : You can use below API for daulting
attributes
oks_attr_defaults_pvt.default_lines_to_sublines
(
lines_sublines_tbl => l_line_table,
x_return_status => l_return_status,
x_msg_tbl => l_msg_tbl
);
okc_contract_party_pub.create_contact (
p_api_version => 1,
p_init_msg_list => fnd_api.g_true,
x_return_status => l_return_status,
x_msg_count => l_msg_count,
x_msg_data => l_msg_data,
p_ctcv_rec => l_ctcv_rec,
x_ctcv_rec => l_x_ctcv_rec
);
okc_contract_party_pub.update_contact (
p_api_version => 1,
p_init_msg_list => OKC_API.G_FALSE,
x_return_status => l_return_status,
x_msg_count => l_msg_count,
x_msg_data => l_msg_data,
p_ctcv_rec => l_ctcv_rec,
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CREATING CONTACT E-MAIL ADDRESS AT CONTRACT HEADER LEVEL :You can use
OKS_EXTWAR_UTIL_PUB.Contact_Point to create contact at header.
OKS_EXTWAR_UTIL_PUB.Contact_Point (
p_api_version => 1,
p_init_msg_list => 'T',
P_commit => 'F',
P_contact_point_rec => l_cpoint_rec,
x_return_status => l_return_status,
x_msg_count => l_msg_count,
x_msg_data => l_msg_data,
x_contact_point_id => l_x_contact_point_id
);
Sales Credit : For creating sales credit separately, we will have to use
API:OKS_SALES_CREDIT_PUB.INSERT_SALES_CREDIT.
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