Service Contracts - Setup Service Contracts for Auto Renewal

--This is applicable to Oracle Service Contracts 11.5.6 to 11.5.10.

Contracts are renewed automatically through the use of Events.  The following steps are used to set up an Event to renew contracts.


I) Define a Process Definition -
The Process Definitions form is used to tell the applications what seeded or custom processes should be  used for certain situations. For example, if a contract approval workflow has been developed that is opted for the seeded contract approval workflow, this is the form needed to tell the applications that the custom workflow exists. For Contract Renewals, there is a stored PL/SQL procedure in the database that can be used to renew contracts. Below are the values to enter in the Process Definition form to let the applications know that this is the Process that is too be run for the automatic renewal of contracts.

Navigate to the Process Definitions form, and there is a seeded definition as follows:
Navigation Path: Service Contracts Manager>Setup>Contract>Process Definition.

Field	Value
Name	Contract Renewal
Description	Renew Contracts using an Event Outcome
Purpose	Outcome (This value enables this Process Definition to appear in the LOV for the Independent Condition to be defined next.)
Type	PLSQL

Package	OKC_RENEWAL_OUTCOME_PUB
Procedure	RENEWAL_OUTCOME

The following parameters are used by the stored procedure to automatically renew contracts (OKC_RENEWAL_OUTCOME_PUB.RENEW). These values should be entered into the Parameters block of the Process Definition form.

Name	Data Type	Default Value	Description
P_DURATION	NUMBER		Contract Duration
P_CONTRACT_ID	NUMBER		Contract Identifier
P_UOM_CODE	CHAR		Unit of Measure
P_NEW_CONTRACT_NUMBER	CHAR		New Contract Number

There is a checkbox entitled 'Required' on the right-hand side of the form for each parameter. These, and only these, parameters should have this checkbox enabled:

P_CONTRACT_ID

II) Independent Condition -
Independent Conditions are used to define the conditions that must be met before the Outcome (defined in the last step) is processed. Navigate to the Independent Condition form
Navigation Path: Service Contracts Manager>Contract Events>
Define Independent Condition.

a) Enter a Name for your Independent Condition.

b) Select the Date radio button in the Condition Type block. When selecting this radio button the fields next to it(Days, Before/After and Date) will be activated. Enter 45 in the Days field. Enter Before in the Before/After field. Enter Contract Expiration in the Date field.

c) The Expressions and Functions tabs allow the SQL code to be entered into the Conditions. This enables the list to be narrowwed down to specific contracts or types of contracts to be renewed using this Outcome.

Another example of how these can be used is to notify someone if a Service Request is created for a specific customer, or list of customers, that may be very important to business. There is no need to enter
information in these fields if all contracts will be renewed the same way for the same duration. The renewal can also be overridden at the contract level. For example, if it is specified in a contract for the renewal defaults to not renew, the contract will not be renewed by this setup.

d) In the Outcome block enter the name of the Outcome defined in the Process Definition step and click on the Parameters button. In the form that appears there will be the parameters that were defined for the
process. The enabled flag should be checked.

e) Highlight the P_CONTRACT_ID,Once detail is highlighted right click on one of them until the menu appears. Select Populate selected rows in PARAMETERS from the menu. In the next form enter the values below. Click on OK to close the form and return to the Independent Condition form. Save work.

Parameter	Data Type	Action Attribute	Value
P_CONTRACT_ID	NUMBER	CONTRACT_ID

Note: If another outcome is used, for example, OKS EVENT RENEWAL PROCESS, it is important that the Parameters that are entered in the Independent Condition are the same as the parameters that are designated as Required in the Process Definition. An error will occur if there is a mismatch in the parameters.

Now the applications knows to renew all contracts 45 days before their expiration date. Also, the applications knows when the contracts are renewed(for 12 months). As many Outcomes and Independent Conditions can be defined, as many as necessary to meet contract renewal requirements of the
business.  The Expression and Function tabs are used in the Independent Condition to
restrict the selection of contracts to be renewed using the selected outcome.

Note: Any of the parameters entered in the Process Definition may be entered in this form. As many Outcomes and Independent Conditions can be defined, as necessary to cover all renewal requirements. All parameters must have a value. If the value for a parameter is not entered in the Process Definition form, a value must be entered for that parameter in the Independent Condition form.

Two Concurrent Processes must be scheduled to pick up the Event and Outcome.
Once started these concurrent processes run continuously. They are:
  Listener for Events Queue
  Listener for Outcomes Queue

Note: These Concurrent Processes must be scheduled, merely submitting them once will not process the entire Q contents. 

For time based events the Date Assembler concurrent program is also required to run (only once per day).

Also make sure that the Workflow background process is running for Contract Alerts.

III) Renewal Defaults -
Contracts allows for contracts to be renewed using different methods. You set the renewal type on the Administration tab at the header to be one of four options:

1. Do Not Renew - The contract will not be renewed.  A contract with this renewal type will not be renewed either manually or by an Event.

2. Active Contract - The contract to be renewed automatically with a status of Active, no approval is required. If the renewed contract has a future effective date the contract status will be Signed until the
date the contract is effective. On this date the contract status will be updated to Active. (Contracts Status Change concurrent process must be run before the status will change to Active).

3. Notify Salesrep - Contract will be renewed in an Entered status. A notification will be sent to the salesperson on the contract informing them that the contract is being renewed. The salesperson selected to
receive the notification is the salesperson entered as the vendor contact in the contract
header. The salesperson must be set up as a Resource.

4. Submit for Approval - Contract is renewed with a status of Entered. The contract automatically runs through QA. If QA passes, the contract is automatically submitted for approval. 

Renewal Defaults can also be set at the line and sub-line level. There are 3 choices of renewal defaults available at the line level. They are:

1. Full Duration - Lines will be renewed for the full duration of the renewed contract. This is particularly useful for contract lines added midstream on a contract. Although their duration on their original contract is only a portion of the contract's duration, when the contract is renewed their duration will be extended to the full duration of the new contract.

2. Keep Duration - If a line on a contract is only active for a portion of the contract's duration when the contract is renewed the line will keep it's duration as that portion of time. The line duration will be less than the new contract duration.

3. Do Not Renew - The contract line will not be renewed. In the case where the contract line has a renewal type of Do Not Renew, sub-lines will not be renewed, regardless of their renewal type.


The renewal and pricing attributes are optionally maintained in the individual contracts and apply to both contract categories "Warranties and Extended Warranties" and "Service Agreements".  Renewal Defaults for Warranties and Extended Warranties contracts are set at the contract level in the Contract
Details form in Order Management. If renewal options are not specified in contract, the renewal and pricing attributes are retrieved from the renewal event or from the global defaults in the following order of precedence:

1. Event - Events can be used for Contract Renewal. By entering values for the parameters in either the Outcome or the Independent Condition forms you can default contract information when using Events to renew contracts.

2. Party - (Service Contracts Manager->Setup->Contracts->Global Contracts Defaults) Defaults can be set for a Party in the Renewal Rule Defaults form.

3. Organization - Defaults can be set for organizations in your company. Organizations defined as Operating Units are eligible to be selected for renewal defaults.

4. Global - The Global Defaults are located at the top of the Renewal Rule Defaults form. If default values have not been specified in earlier checks (Contract, Event, Party or Organization), the defaults defined here will be used.  These defaults are a required setup step.


Party, Organization and Global renewal defaults are defined in the Renewal Rule Defaults form
Navigation Path: Service Contracts Manager>Setup>Contract>Global Contract Defaults.


IV) Contracts Details
From the Order Management Actions menu on the Order Line tab, contracts details may be defined which specify the renewal rules, PO required, pricing method, cap price list, markup / markdown and customer contact. If rules need to be applied to all service lines, the apply all feature makes the process easier for the
user. In addition, merging rules may be specified to determine to which contract an order line is to be merged. An order line may be merged to an existing contract or to a contract on the current order.