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
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Create the coverage item.
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Set up pricing.
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Test your set up.
Create the Coverage Item
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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
-
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
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Sign out, and then sign into Oracle Pricing.
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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.
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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
-
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
-
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
-
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
-
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
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Save your set up, and then sign out of Pricing.
Test Your Set Up
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Sign into Order Management, then create a sales order.
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On the catalog line, search for the item, then click Add.
Field
Value
Select Item
PTO54222
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On the catalog line, search for the item.
Field
Value
Select Item
Fixed Extended Warranty for Standard Desktop
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Wait for the search to finish, then notice that the catalog line displays 5 Year as a read-only value.
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Click Select Covered Item, select the order line to cover, then click Add.
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Verify that you can't edit the Duration or Period.
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On the catalog line, search for the item.
Field
Value
Select Item
Open-Ended Extended Warranty for Standard Desktop
-
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.
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Set the values on the catalog line.
Attribute
Value
Duration
1
Period
Day
-
Click Select Covered Item, select the order line to cover, then click Add.
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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.
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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
-
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
-
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
-
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