Contract Renewals Process
On the scheduled run of the script that creates renewal transactions, a renewal sales order is generated for contracts that are within 90 days of its end date. The renewal sales order includes any renewal contract items from the expiring contract that extend to the contract end date. For information about editing renewal transactions, see Editing a Renewal Transaction.
You can change when renewal transactions are generated (Days Before Renewal) and the type of renewal transaction created (Transaction Type to Create) on the Contract Renewals Creation subtab of the Contract Renewals Preferences page. To set the these preferences, go to Contract Renewals > Setup > Contract Renewals Preferences. For more information, see Setting Up Contract Renewals Preferences.
You can also override the Days Before Renewal preference for specific contracts by specifying a value in the Contract Days Before Renewal field on the contract record. For more information, see Editing a Contract.
If contract items on the expiring contract are the same, they are combined on the renewal contract. This occurs when additional items are added to a contract some time during its contract term. For items to be combined, the rates on each line must match. For more information, see Contract Upsell.
If you need to remove an item from a renewal transaction, change the quantity for the line item to 0 (zero) rather than removing the line item. This ensures that downsell is tracked properly and that any invoices created do not include 0 quantity line items.
If you are provisioning based on fulfillment transactions, transaction line items with zero quantity can be a signal to de-provision those items. If you are provisioning based on contract items, you can signal items to de-provision with negative-quantity contract items.
If there are return authorizations associated with a contract that are not approved before the active contract renewal, those return authorizations are not reflected in the renewal. For more information, see Contracts and Returns.
You can create reminders or saved searches for your dashboard to alert you when renewal transactions are generated. You can base your reminder on transactions with the Order Type set to Renewal. For more information, see Setting Up Reminders.
Software Vertical Contract Renewals SuiteApp also supports renewing contracts on demand by clicking the Renew Now button on a contract record. For more information, see Renewing a Contract.
Example
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 is not renewable and ends prior to the contract end date, so this item is not included in the renewal order.
Renewal Transaction (Details of the Renewal Contract)
