Greenbrier & Russel

Oracle Contracts Service (OKS)

June 14, 2004

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Introduction

▪ Joe Beckrich

▪ Functional Financial Consultant

▪ Manufacturing Accounting

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Agenda – Oracle Service Contracts

◆ Available Oracle Contract Applications

◆ Service Contracts Highlights - How Service Contracts can Increase Revenue and Efficiency

◆ Service Contracts Specifics - Components and Functionality of Service Contracts

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Oracle Contracts Management

◆ Improved Efficiency■ Automation/Integration

◆ Increased Revenue■ Up-sells & Auto Renewal

◆ Reduce Risks■ Proactive Notifications■ Enforce Business Practices

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Oracle Contracts Applications

◆ Sales Contracts■ Manage Contractual Customer Relationships

◆ Service Contracts (OKS)■ Manage Service Entitlements & Coverages

◆ Lease Contracts■ Manage Equipment Leasing & Closeout

◆ Projects Contracts■ Capture & Track Work & Cost Projects

◆ Procurement Contracts■ Ensure Suppliers Adhere to Obligations

◆ Contracts Core (OKC) ■ Foundation for All Contract Module

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Contracts Service

▪ Sell & Administer ▪ Warranties

▪ No Charge with Product

▪ Ext. Warranties▪ Billed after Original Warranty Expires

▪ Service Contracts▪ Billed Maintenance or Other Ongoing Support

▪ Through OM or Directly in OKS

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Contracts Service

◆ Define Entitlements

■ Level of Coverage

■ Rates for Service Labor

■ Discounts on parts

■ Available Resources

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Service Contracts

◆ Establish

■ Pricing

■ Billing Schedules

■ Revenue Recognition

■ Automatic Renewal Notifications

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Service Contract

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Warranties◆ Defined as a Warranty Item (Service Pgm/Warranty)

■ Describes the Offering & Level of Coverage■ Appears on Orders, Invoices & Service (IB)

◆ Warranty Item Included in Product BOM■ Product’s BOM Enables Inclusion on Order

◆ Integrated w/Order Management■ Automatically on Order with Product■ Contract Created when Product Shipment Occurs

◆ Product Line / Item Specific■ Define as Many Warranties as Required

◆ Integrated w/ Oracle Service & IB■ Installed Base Tracking for Service■ Attached to Item/Product/Customer/Site/Party

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Warranty Item

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Bill of Material w/ Warranty Item

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Warranty Item on Order

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Extended Warranty (Service Program)

◆ Defined as a Service Item■ Describes the Offering & Level of Coverage■ Appears on Invoices

◆ Created as Contract in Service Contracts■ Billed on Invoice■ Becomes a Service Program Contract

◆ Sold as Additional Product Coverage■ Authored in Service Contracts■ Billed via Interface with AR

◆ Follow on to Initial Warranty■ Created as the Initial Warranty period come to an end■ Created Immediately but not Billed or Recognized until Extended

Service Period Begins or as Defined◆ Integrated w/ Oracle Service & IB

■ Installed Base Tracking for Service■ Attached to Item/Product/Customer/Site/Party

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Extended Warranty Item (Service Program)

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Warranty vs. Extended Warranty

Can be renewed, extended orterminated

Cannot be renewed, Can be extended or terminated

Are not included in a BOMDo not have a costAssociated with serviceable items in Bill of Materials (BOM)

Can be authored or created via the Order Management interface

Cannot be authored, can only be created by integration with Order Management or Installed Base

Can be ordered as an immediate or delayed service

Non-orderable and managed automatically

Extended WarrantiesWarranties

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Service Contracts (Service Program)

◆ Defined as a Service Item■ Describes the Offering & Coverage■ Appears on Invoices

◆ Sold as a Separate Offering■ Maintenance of equipment/facility■ Recurring services■ Ongoing Support■ Authored in Service Contracts■ Billed via Interface with AR

◆ Variable Pricing■ Period based■ Usage Based

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Coverage Templates

◆ Define the Business Process■ Field Service■ Depot Repair■ Customer Support

◆ Provides Entitlement Details■ Integrated w/Service

◆ Assigned to Items as Default ■ Modified as Required by Contract

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Coverage Templates◆ Levels of Coverage

■ Gold – Silver – Bronze (Common)■ Coverage Times

• 24/7, 24/5, 12/5■ Reaction Times

• Severity Based• Defined by Day and TOD

■ Resolution Times• Severity Based• Defined by Day and TOD

■ Resource Preferences• Who are Assigned• What Equipment is Deployed

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Coverage Template – Coverage Times

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Coverage Template – Resolution Times

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Coverage Templates (Cont.)

◆ Levels of Coverage (Cont.)■ Billing Types

• Material■ Pricing ■ Available Discounts

• Labor■ Rates by Grade

• Expenses■ Limits

• Loaners

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Coverage Template – Billing Types

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Service Billing◆ Integrated w/ Advanced Pricing

■ Pricing for Items as Required by Customer◆ Integrated w/ Receivables

■ Invoices are Created via AutoInvoice■ Accounting as Defined

◆ Billing Schedules■ Defined by Contract / by Line■ Lump Sum■ Prorated by Defined Period■ Cotermination functionality■ Pre-Termination Prorated Credits

◆ Revenue Recognition■ Defined on Contract■ Executed in AR

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Notifications & Renewals

◆ Automatic Renewal Options■ Active (Keep this Contract Active)■ Do Not Renew (Line or Contract)■ Notify Salesperson (to contact Customer)■ Submit for Approval (without notifying Salesperson)

◆ User Defined Workflow ■ Notification of Contracts Coming Due

◆ User Defined Re-pricing Rules■ Modifiers in affect at Renewal Time

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Summary▪ Improve Productivity and Profit▪ Use to control

▪ Warranties▪ Extended Warranties▪ Service Contracts▪ Entitlements & Levels of Coverage▪ Billing/Revenue Requirements

▪ Integrated ▪ OM ▪ Service/IB▪ AR

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Questions & Answers

Joe Beckrich - Greenbrier & Russeljbeckrich@gr.com