Creating Service Contract - Contract Line Type = Coverage, Sell

Summary

Unable to create a Service Contract with Line type of Coverage, Sell (Covered Product).

Content

Hello,

I am trying to create a Service Contract with Line type of Coverage, Sell (Covered Product) in contract management and seems to be facing the following challenges and appreciate if someone can share their experience in resolving this.

1. Unable to see any Item when the contract line type = Coverage, sell

2. Unable to automatically being the Price based on Price list 

3. How to setup a Pricing Strategy if that is required.

I have completed all the required setup per the check list of Service contract Setup check list and need some help.