Consider the following tips for creation Service Contracts from OM:
 Service agreements/extended warranties can be created as a result of
 selling a Service item on a sales order.  The process for creating
 the contract is different in 11i and R12.
 In 11i the process uses the ASO queues as follows:
 1. After the sales order is shipped, data is placed in ASO queues
 2. Data is dequeued and OKS_REPROCESSING table is populated
 3. The Service Contracts Order Capture Integration program must be
 run
 
 In R12 the ASO queues are no longer used and the Service Contracts
 Order Capture Integration program is obsoleted.  The R12 process is:
 1. after the sales order is shipped, data is placed directly in the
 OKS_REPROCESSING table
 2. the Service Contracts Order Processing Program must be run
 
 Notes: 
 (a) in both 11i and R12 the Workflow Background Process concurrent
 program must also be running, so that deferred workflows are
 progressed.
 (b) in both 11i and R12 the contract creation will fail if there is
 an Install Base error and the referenced instance is not created.  
 
 The following notes can help in the troubleshooting this process:
 
 
- 12 How to Process Order Lines from Order Management to Create
 Service Contracts (Doc ID 785760.1)
- Flow for Troubleshooting Order Management/Service Contracts/Install
 Base Integration Issues (Doc ID 463912.1)
- Completed OM Service Lines Not Flowing To Service Contracts (Doc ID
 375240.1)
- How to Create a Service Agreement From a Sales Order That Has a
 Third Party Role in the Contract (Doc ID 459262.1)
- How to create multiple extended warranty or service contracts from
 one sales order (Doc ID 406200.1)
