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If you have the application create a new contract from your order (rather than adding the lines to an existing order), you should be aware of some key differences between the contract that was created for you automatically and one that you create in Oracle Service Contracts application.
Contracts created in Oracle Order Management:
Are restricted to service that covers products that the customer owns (Oracle Installed Base item instances) or products that the customer is in the process of buying (items in Oracle Inventory). You cannot use them to sell service that covers larger sets of inventory items or to sell service at the system, site, or party levels.
Are automatically created in the Active status.
Do not have to pass the usual quality assurance check list and approval process as contracts created in Oracle Service Contracts.
Are billed through Oracle Order Management. This means that the customer is billed in one invoice and you cannot take advantage of the flexible billing schedules that you set up in Oracle Service Contracts. (To add flexibility, you can instead set up Payment Terms in Oracle Receivables to set up incremental billing over time.)
Cannot have their coverage modified. Agents can modify the coverage for only contracts that are created in Oracle Service Contracts.
Do not contain usage lines, because no way is available to create a usage line in the sales order itself.
For renewals, the contracts that are generated in Oracle Order Management become just like any contract that is created in Oracle Service Contracts.
Sanjay | 8 years ago