Set Up and Use Coverage Items or Extended Warranties

Coverage Items or Extended Warranties

Coverage items or extended warranties let you sell additional coverage services to your customers. Coverage items can be sold as separate items themselves, and you can set up pricing for these items as well.

Follow below steps to set up a Coverage/Warranty Item for Covered Item:

1. Administer Parameters:

Setup and Maintenance > Order Management Work Area > Manage Order Management Parameters page

2. Create the Covered Item:

Product Management > Product Information Management > Task > Create Item

• Item: SATO001 Laptop
• Org: 100
• Item Class: Root Item Class
• Template: Finished Goods
• Primary UoM: Ea

 

Specifications > Sales and Order Management: Attribute – Sales Product Type: Goods

Item Organization > Service: Attribute - Enable Contract Coverage: Yes

3. Create the Coverage Item:

Product Management > Product Information Management > Task > Create Item

• Item: SATO002_Variable Extended Warranty for Laptop
• Org: 100
• Item Class: Warranty and Services
• Template: Finished Goods
• Primary UoM: Year

 

Specifications > Sales and Order Management: Attribute – Sales Product Type: Extended Warranty

• Item Organization > Service:
• Attribute – Service Duration Type: Variable
• Duration: 5
• Duration period: Year

4. Set Up Pricing for the Covered and Coverage Item:

Pricing Administration > Tasks> Manage Price List > Search ‘Corporate Segment Price List’

Add your covered item to the list and add the sale price for it.

Pricing for Coverage Item:

Pricing Administration > Tasks> Manage Price List > Search ‘Corporate Segment Price List’

Click Actions> Add Rows > Search ‘SATO003’

Click on Manage Covered Item in the Associated Item Column as highlighted above.

Add Row as follows and Click on Create Charge.

Add the details below to the Charge,

Save and Close.

5. Testing the Set Ups:

Go to order Management Work Area > Tasks > Create order

Add ‘SATO001 Laptop’ to the order line.

Add the Extended warranty item and click on ‘Select Covered Item’ and select the order line to cover.

You will see the price for the warranty based on the calculation given on the Price list.

Save and validate the Sales Order.