Contract Renewal Sample Business Case
A software company sells a twelve-month software product license, a support entitlement, and 100 seats. Additionally, the contract includes a professional services item that ends three months into the contract.
When a contract is created from the sales order, the contract ID is shown in the Contract field on the saved sales order.
Initial Sales Order (Details of the Original Contract)
By default, 90 days prior to the end date of the contract, a renewal sales order is created automatically.
In this example, the product license, the seats, and the support entitlement are all renewable items. The term of these items extends to the contract end date, so all three of these line items appear on the renewal order.
The professional services item isn't renewable and ends prior to the contract end date, so this item isn't included in the renewal order.
Renewal Transaction (Details of the Renewal Contract)