Service Contract Pricing

For service contracts, you must first set up the pricing strategy for the contract. The pricing strategy of the contract is then retrieved when the Business Unit, Legal Entity, contract Type, Number and Primary Party are entered during contract creation.

When lines are added, the pricing information is retrieved automatically and finalized during contract submission.

The pricing attributes of the service contract, as seen in the Overview, Billing, and Lines tabs include the following:

• Charge Name: The type of charge - one time, recurring, multiple charge for a service.

• Pricing Effective Date: Mandatory for contracts, the system date is taken as the effective date of the contract and can be changed during the process of contract creation, after which you cannot update or change it.

• Pricing Strategy: Displayed as a read-only field and is created during setup.

• Price as of Date: Pricing date of the contract line, which may vary from the final price of the serviceable items.

• Price UOM: Optional for service contracts, it is the unit of measurement for pricing. For example, the Price UOM can be 'Each'.

• Price List: List containing the one time, recurring, and usage charges for serviceable items in the contract line.

• Price Periodicity: Period for which the contract line is priced. For example, 'MONTH'.

• Unit Price: Price per unit of the serviceable item.

• Net Price: Price of the total number of items in the contract line.

For details on the pricing profile, pricing segment, and pricing strategy of service contracts, see the Managing Pricing for Covered Items section in the Oracle SCM Cloud, Administering Pricing guide.