Add Fixed and Open-Ended Coverage to Sales Orders

The behavior of fixed coverage and open-ended coverage is slightly different from the behavior for variable coverage. As an option, you will create a fixed coverage item, an open-ended coverage item, then test them.

Summary of the Set Up

1. Create the coverage item.

2. Set up pricing.

3. Test your set up.

Create the Coverage Item

1. Use the Product Information Management work area to create the coverage item.

   Attribute	Value
   Organization	Vision Operations
   Number of Items	1
   Item Class	Warranty/Services
   Template	Finished Goods
   Item	Fixed Extended Warranty for Standard Desktop
   Description	Fixed warranty for the Standard Desktop computer.
   Primary Unit of Measure	Year
   Sales Product Type	Extended Warranty
   Service Duration Type	Fixed
   Duration	5
   Duration Period	Year

2. Create another coverage item.

   Attribute	Value
   Organization	Vision Operations
   Number of Items	1
   Item Class	Warranty/Services
   Template	Finished Goods
   Item	Open-Ended Extended Warranty for Standard Desktop
   Description	Open-ended warranty for the Standard Desktop computer.
   Primary Unit of Measure	Year
   Sales Product Type	Extended Warranty
   Service Duration Type	Open Ended

Set Up Pricing

1. Sign out, and then sign into Oracle Pricing.

2. Set up pricing for the fixed coverage item on the Corporate Segment Price List.

   Attribute	Value
   Item	Fixed Extended Warranty for Standard Desktop
   Line Type	Buy
   Pricing UOM on the Manage Covered Items page	Each
   Coverage UOM	Year
   Action Type	Add
   Pricing Charge Definition	OAL Recurring Charge
   Calculation Method	Covered Item Price Percent
   Coverage Basis	Coverage Basis Your Price
   Calculation Amount	20
   Price Periodicity	Year

   Order Management doesn't allow your user to change the Duration or Period for a fixed coverage item, so you only need to set up a charge for one period.

3. Add the open-ended coverage item to the Corporate Segment Price List.

   Attribute	Value
   Item	Open-Ended Extended Warranty for Standard Desktop
   Line Type	Buy

4. Add the charge for Year.

   Attribute	Value
   Pricing UOM	Each
   Coverage UOM	Year
   Action Type	Add
   Pricing Charge Definition	OAL Recurring Charge
   Calculation Method	Covered Item Price Percent
   Coverage Basis	Coverage Basis Your Price
   Calculation Amount	20
   Price Periodicity	Year

5. Add the charge for Quarter.

   Attribute	Value
   Pricing UOM	Each
   Coverage UOM	Quarter
   Action Type	Add
   Pricing Charge Definition	OAL Recurring Charge
   Calculation Method	Covered Item Price Percent
   Coverage Basis	Coverage Basis Your Price
   Calculation Amount	5
   Price Periodicity	Quarter

6. Add the charge for Month.

   Attribute	Value
   Pricing UOM	Each
   Coverage UOM	Month
   Action Type	Add
   Pricing Charge Definition	OAL Recurring Charge
   Calculation Method	Covered Item Price Percent
   Coverage Basis	Coverage Basis Your Price
   Calculation Amount	10
   Price Periodicity	Month

7. Add the charge for Week.

   Attribute	Value
   Pricing UOM	Each
   Coverage UOM	Week
   Action Type	Add
   Pricing Charge Definition	OAL Recurring Charge
   Calculation Method	Covered Item Price Percent
   Coverage Basis	Coverage Basis Your Price
   Calculation Amount	7
   Price Periodicity	Week

8. Save your set up, and then sign out of Pricing.

Test Your Set Up

1. Sign into Order Management, then create a sales order.

2. On the catalog line, search for the item, then click Add.

   Field	Value
   Select Item	PTO54222

3. On the catalog line, search for the item.

   Field	Value
   Select Item	Fixed Extended Warranty for Standard Desktop

4. Wait for the search to finish, then notice that the catalog line displays 5 Year as a read-only value.

5. Click Select Covered Item, select the order line to cover, then click Add.

6. Verify that you can't edit the Duration or Period.

7. On the catalog line, search for the item.

   Field	Value
   Select Item	Open-Ended Extended Warranty for Standard Desktop

8. Wait for the search to finish, then notice that the catalog line displays two empty fields, and that you must set them before you continue. If you don't, then Order Management displays an error.

   An open-ended coverage item is similar to a variable coverage item, except Order Management displays the default values for Duration and Period on the catalog line for a variable coverage item, and doesn't display any values for an open-ended coverage item. The Order Entry Specialist must set these values for an open-ended coverage item.

9. Set the values on the catalog line.

   Attribute	Value
   Duration	1
   Period	Day

10. Click Select Covered Item, select the order line to cover, then click Add.

11. Verify that the coverage order line for the open-ended coverage doesn't contain prices. You didn't set up a charge for Day, so no pricing will display, and you can't submit the sales order.

12. Set Period to Year, then verify that these values display on the coverage line.

    Quantity	Your Price	Amount	Amount for Total Duration	Duration	Period
    1	100	100	100	1	Year

13. Set Period to Month, and then verify that these values display on the coverage line:

    Quantity	Your Price	Amount	Amount for Total Duration	Duration	Period
    1	50	50	50	1	Year

14. Set Period to Week, then verify that these values display on the coverage line.

    Quantity	Your Price	Amount	Amount for Total Duration	Duration	Period
    1	35	35	35	1	Year

15. Set Duration to 2, then verify that these values display on the coverage line.

    Quantity	Your Price	Amount	Amount for Total Duration	Duration	Period
    1	35	35	70	1	Year