R12: New Instance creation: what is create warranty check box?

Hello all,
In R12, we can create Item instance from Contract launchpad screen itself.
When New Instance sub form opens, it has "create warranty" check box.
What is the purpose of this checkbox?
Regards
Preeti

Yes,you can create so that you can cover this instance in the same contract quickly ( i am hoping it is not automatically adding to the contract where you created from). This must be keeping in mind the customer service getting calls about new product that customer wanted to get covered.
Warranty creation depends on whether the product (item) has BOM with warranty item as a component or not. Do you have that setup done for this item?
Thanks
Nagamohan

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