Impact of Asset Lifecycle Changes on Included Warranties and Coverage Subscriptions

Assets that are part of included warranties can undergo lifecycle changes, such as when assets are returned, expired, or transferred.

Included warranties and coverage lines must reflect such changes. For example, there can't be an active included warranty for an asset that's been returned. By default, Subscription Management integrates with Oracle Asset Lifecyle Management to manage these changes. The applications start specific asset transactions that update the included warranties and coverage lines.

Subscription rule Asset Lifecyle Management settings determine how the applications change the impacted subscription contracts for installed base updates or asset transactions.

To set the rules:

1. Sign in as a setup user.

2. Navigate to the Subscription Configuration work area.

3. On the Subscription Configuration page, click the Subscription Configuration tab.

4. Click Manage Subscription Rules.
5. Click Asset Lifecycle Management.
6. Select the Common Rules:
   • The Close Reason is the default close reason when a covered asset line is closed.
   • The Cancellation Reason is the default cancellation reason when a covered asset line is canceled.
   • The Transfer option specifies the covered asset line change that happens when an asset is transferred.
   • The Termination Credit Method is the default credit method used when covered asset lines are terminated.
7. Select the covered asset line change for included warranties and coverage lines when an asset is transferred.
8. Save your changes.

This table explains the various asset lifecycle transactions, the asset transaction updates that they trigger, and the synchronization behavior with Subscription Management.

Asset Change	Asset Transaction Type	Impact on Asset Transaction Updates for Included Warranty/Coverage Line	Impact on Revenue Contract in Oracle Revenue Management Cloud
An asset is expired in Installed Base/Asset Lifecycle Management	Customer Asset Expiration	Asset transactions are visible in Reprocess Installed Base Updates in Pending status. Covered asset lines are closed on the included warranty/coverage subscription line. Closed Date is the customer end date of the asset (expiration date), plus 1 day. Close credit, close, and cancel reasons are set according to the Manage Subscription Rules > Asset Lifecycle Management tab settings.	Material revision of the associated revenue contract is initiated.
An asset is reinstated in Installed Base	Customer Asset Reinstate	Asset transactions are visible in Reprocess Installed Base Updates in Pending status for Included Warranties only. Asset transactions update only included warranties. As a result of customer asset reinstatement, covered asset line status becomes Active or Expired, depending on whether the covered asset end date is in the future or past, respectively. Extended Warranties aren't reinstated.	No impact
An asset is returned to the supplier	Customer asset return	Asset transactions are visible in Reprocess Installed Base Updates in Pending status. Covered asset lines are closed for included warranties and coverage subscription lines. Closed Date will be the customer end date of asset (expiration date), plus 1 day Close credit, close, and cancel reasons are set according to the Manage Subscription Rules > Asset Lifecycle Management tab settings.	Material revision of the associated revenue contract will be initiated
An asset is transferred to another customer	Customer asset transfer	Asset transactions are visible in Reprocess Installed Base Updates in Pending status. The impact of the asset transaction update on included warranties and coverage subscription lines is determined by the Transfer option selected in the Manage Subscription Rules > Asset Lifecycle Management tab. If the transfer option is Transfer: The applicable covered asset lines are closed. New covered asset lines are created for the new customer for the remaining duration, starting from transfer date plus 1 day. If the transfer option is Terminal: The applicable covered asset line is closed as of asset transfer date plus 1 day. Close credit, close, and cancel reasons are set according to the Manage Subscription Rules > Asset Lifecycle Management tab settings. If the transfer option is Do Not Change or if no transfer option is selected, included warranties and coverage lines are updated.	Material revision of the associated revenue contract is initiated for the terminated line. A new revenue contract is created for the new coverage subscription, covering the transferred covered asset.
An asset under warranty is returned due to fault, and the supplier initiates a replacement by shipping a new asset	Customer Asset Replacement	Asset transactions are visible in Reprocess Installed Base Updates in Pending status for Included Warranties only. The applicable covered assets are terminated on the replacement date plus 1 day. A new covered level is created for the replacement asset, starting the replacement date, plus 1 day, until till the original covered asset end date. Extended Warranties aren't replaced.	No impact