Categories of Oracle Service Contracts

There are 4 categories of Service Contracts:

1. Warranty
2. Extended Warranty
3. Subscription Agreements
4. Service Agreements  

Warranty - The Service that are generally given away for free when the customer purchases a product.  For the purpose of Oracle Service Contracts, warranties are always free of charge and are created automatically by Oracle Order Management when a product is sold.  

Extended warranty - The Service that are generally sold to the customer at an additional cost at the time their products are purchased.  We can sell the extended warranty contract using Oracle Order Management at the time the product is sold or we can also sell extended warranty contracts separately after the product is sold from Order Management or Oracle Service Contract Module.

These contracts often take advantage of the ability to bill on a recurring basis either monthly, quarterly or annually and can give the customer the ability to pay for their services in advance or in arrears of the period of service. 

Subscription Agreements - The service/products that can also be sold for both tangible and intangible items and that often have monetary benefits involved for customers. Tangible items include magazines, collateral, or any other physical item that can be shipped through Oracle Order Management. Intangible items can be collateral sent via e-mail or permission to access a web site for a set period of time.

Service Agreements - (also referred as Service Contracts) are contracts those are sold to customers to repair, support / maintain product or services that a customer has or sold by the vendor / seller. All the services agreements bind within the boundaries of terms and conditions that is associated with the contract.

Service agreement give the flexibility to bill the customer on a recurring basis like Monthly, Quarterly, Half yearly or annually and gives customer the ability to pay in advance or in arrears. Service agreements can be created manually or created automatically from Order Management.  

Posted in: Functional,Oracle Notebook,Oracle Service Contracts