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In Oracle Inventory, you can define items that represent products or services that are critical to your service organization, such as:

• serviceable products, which are end items that you wish to track in the installed base after they are sold

• service programs, which represent billable support services such as telephone support, field service support, extended product warranties, etc.

• warranties, which you can attach to a specific serviceable product, are applied automatically when you sell those products

• material, such as replacement parts, used as you repair defective customer products in a depot repair facility

• labor and expenses used in depot repair, field service, or support

You can specify warranties by adding the warranty item to the bill of material for the product that the warranty covers.

For example, assume you sell personal computers. "Pentium Super" is an end product, defined as a serviceable product for installed base tracking. "90-day warranty," another item, is a warranty that always comes with the Pentium Super. "Hotline support" and "Extended coverage," two additional items, are billable service programs that you optionally sell along with the Pentium Super, or perhaps sell later when the included warranty expires. "Power supply A" is a material that you sometimes replace in the Pentium Super. "Standard labor rate," an item with a list price of $50 and a unit of measure of hours, is billable labor to repair the Pentium Super. "Zone 1 travel expense" is a billable expense for when you have to dispatch an engineer to repair a Pentium Super at a customer site. Each of these is defined in the Oracle Inventory item master, and "90-day warranty" is part of the bill of material for "Pentium Super".

See: Defining Serviceable Products, Defining Service Programs, and Defining Warranties.