1. Using Maintenance
  2. How You Create a Coverage

How You Create a Coverage

Here’s the process to create a coverage:

  1. Click Create Coverage to navigate to the Warranty Coverage guided process.
  2. Define and save a new coverage.
  3. On the Process Overview page, click Start to create a new coverage. Follow the 5 steps that make up the coverage guided process.
    • Step 1 – Coverage essentials (required)
    • Step 2 – Terms of service (optional)
    • Step 3 – Covered items (optional)
    • Step 4 – Utilization Meters (optional)
    • Step 5 – Repair transaction codes (optional)

Step 1: Coverage Essentials

Use this step is to define the header details for the coverage.

  1. Define the following required attributes before continuing to any of the other steps:
    • Coverage name
    • Coverage code
    • Start date (defaulted to the present date)
    • Status (defaulted to Draft)
    • Warranty provider
    Attribute Required? Description
    Coverage Name Yes

    The name of a coverage.

    Names can be duplicated across coverages, but each must have a unique code. The same name must be reserved for similar coverages that repeat over time and are replaced by an updated version.
    Coverage Code Yes

    The unique value that identifies a coverage.

    Values must be alphanumeric and in ALL CAPS. An underscore “_” can be used as a delimiter in the Code. Examples may include ABC1YRWTY22 or ABC_1_YR_WTY_22.

    A coverage code can’t be changed after the it’s created.
    Coverage Description No The description of a coverage.
    Coverage Status Yes

    The status of a coverage.

    A new coverage begins in Draft status and can only be set to Ready status after the required attributes are defined and either a time Duration, Meter or both are defined. Only coverages in a status of Ready can be used to create a warranty contract.

    You can't set the status from Ready back to Draft if a contract has been created using the coverage. You can set an end date on the coverage to prevent the creation of new contracts.
    Start Date Yes

    The start date of a coverage.

    Value can be in the past, present, or future, but must be less than or equal to the end date.
    End Date No

    The end date of a coverage is optional and should generally only be set if there is a logical date in which the coverage should no longer be used to instantiate new contracts.

    Value must be greater than the present date and greater than or equal to the start date.
    Warranty Duration No

    The time value of how long a warranty coverage will be in effect for an asset using a warranty contract.

    The duration and unit of measure is used to calculate a contract end date. If not defined, then a contract wouldn’t have an end date based on time, but instead will be expected to use meter intervals and have a calculated expiration date.

    A duration may also be paired with one or more meters to provide competing date methods for expiration. Hence, a contract may have both an end date and calculated expiration date.

    Either a duration, meter, or both must be defined to move a coverage status from Draft to Ready.
    Unit of Measure No

    Unit of measure for the warranty duration value.

    Values include days, months, and years. Required if duration is defined.
    Coverage Type No

    (Optional) Indicates to further describe or group similar coverages.

    The Type may be helpful to manage coverages across users and to further refine your search results. Examples may include types such as New Purchase, Extended Warranty, OEM Warranty, and so on.

    An administrator can define the type codes by using the user-defined lookup ORA_CSE_WTY_COVERAGES_TYPE.
    Manufacturer Name No The OEM (Original Equipment Manufacturer) of a coverage. The manufacturer may also be the same as the warranty provider, if they are extending the supplier warranty.
    Supplier Name No

    The supplier reference of a coverage.

    The supplier may also be the same as the warranty provider, if they are extending the supplier warranty.
    Warranty Provider Name Yes

    The main supplier reference on the warranty coverage and its related warranty contracts.

    The provider is the supplier who’s extending the warranty coverage and to whom you would submit a warranty claim for the reimbursement of expenses.

    The provider can be a supplier from whom you purchase an Item or an OEM who extends warranty across some or all suppliers from whom you would purchase an Item.
  2. To move the coverage status from Draft to Ready, provide a defined period using either a Duration, Meter or both methods. These methods are required to calculate an end and / or expiration date on a warranty contract.

  3. Click Save to create or update the coverage essentials.

Step 2: Terms of Service

Though this is an optional step in creating a coverage, this step is used to define additional details about the terms and conditions of the warranty, and reimbursement details. The free-form text fields are used to capture different aspects of the warranty from the provider.

You can also use the slider options to highlight key coverage details, which will be viewable in the supplier warranty tab of a work order and will be referenced during the creation of warranty claims and entitlements.
  • Requires Repair Authorization: Informational only.
  • Labor Reimbursement: If this indicator is set to Yes, then resource and equipment transactions are eligible to create entitlements that are covered under warranty and associated to a claim. Otherwise, entitlements are created but not associated to a claim.
  • Parts Return Required: Informational only.
  • Allows Internal Repair: informational only.
  • Parts Reimbursement: If this indicator is set to Yes, then material transactions are eligible to create entitlements that are covered under warranty and associated to a claim. Otherwise, entitlements are created but not associated to a claim.

Click Save to update the coverage terms of service.

Step 3: Covered Items

Though this is an optional step in creating a coverage, this step is used to define items and suppliers from whom you would purchase an item that becomes an enterprise asset. This setup that is only recommended if you wish to automatically create warranty contracts for newly purchased and received items. Contracts are instantiated from matching coverages by item and supplier by running a scheduled process after an Item is received and the asset is created.

  1. Click Add Item to add a new row to the table.
  2. Search and select a valid inventory organization.
  3. Search and select a valid item, which you can set up and enable for the selected organization.

    You can define duplicate items only if they have a unique supplier and item combination defined. It's recommended to either define one item without a supplier or only rows with a unique item and supplier combination. If you define both, then the row with the unique combination is used. Set up items as full life cycle, maintainable, serial controlled, and purchasable from suppliers to be defined for a coverage.

    Note: You must have the Inventory Organization and Item Class access granted to search and view a list of organizations and items.
  4. Define a supplier or leave blank if the item can be purchased from any supplier and extend this warranty coverage.
  5. Determine if a warranty contract will automatically be created during item receipt and asset creation, and its contract status.
  6. After you define the item details, you can click the checkbox action icon on the same row to save it.
  7. Click Continue to navigate to next step.

Step 4: Utilization Meters

Though this is an optional step in creating a coverage, this step is used to define meter intervals that are used to track the dynamic expiration of a warranty contract for an asset over time. As an asset gains utilization through meter reading reporting, the calculated expiration date and status of a warranty contract will be updated by the scheduled process. When a meter interval is reached, the contract moves from Ready to Expired status.

Define meter intervals in a coverage only if they match the asset meters for which a warranty contract is expected to be created using this warranty coverage. If you create a warranty contract for an asset and the meters don’t match, then they wouldn’t be tracked by the contract, causing a mismatch of the intended warranty coverage expiration method. The contract will also be set to a status of Draft, requiring manual review.

  1. Click Add Meter to add a new row to the table.
  2. Search and select a valid meter code.
  3. Define the meter start and meter interval values.

    The start value must be defined with a value of 0 for newly purchased assets. However, for an extended warranty scenario, the start value would typically be greater than 0. The interval value is the warranty duration of the meter that when reached will expire the contract.

  4. After you define the meter details, you can click the check box action icon on the same row to save it.
    Note: Define meters only if they are used generically across different items and assets. If a meter is specific to a unique asset, then it can still be defined, but warranty contracts considering this meter can only be instantiated for a unique asset.
  5. Click Continue to navigate to next step.

Step 5: Repair Transaction Codes

Though this is an optional step in creating a coverage, this step is used to define repair transaction codes that reference the asset system, component, and item that are covered by the warranty. Use these codes only if you want to reference them in downstream processes.

  1. Click Add Code to add a new row to the table.
  2. Search and select a valid transaction code. Only condition event codes that are of type “Transaction code” will be displayed in the list of values for selection.
  3. Search and select a valid transaction code and click the checkbox action icon on the same row to save it.
  4. Click Complete to create a coverage.