Basic Automated Contract Renewal

Contract Renewal makes a copy of the existing source contract. The source contract can be in an active or expired status. The effectivity and price details on the new renewal contract are changed based on the configured renewal defaults.

Other attributes, such as negotiation settings of the new renewal contract, can also be changed. You can choose to activate contract renewal for service contracts on a header and line level. This means that you can choose to renew the entire contract or specific contract lines, or both.

The three options to edit the renewal process at the time of contract creation are:

• Automatic: This implies automatic contract renewal, which is generated by the Automatically Renew Eligible Contracts and Contract Lines scheduled process prior to contract expiration.

  Note: For the scheduled process to pick the eligible contract, the renewal template must have mark-up, mark-down, or reprice enabled.

• Manual: This implies that the contract or line must be renewed manually. This can be done at any point during the contract lifecycle. You are notified prior to contract expiration.

• Do not renew: This implies that you don't want to opt for contract renewal. On selecting this, the Renewal Type column is removed from the dashboard columns list for all lines and covered assets of the contract.

When contract renewal is selected on a header level, it doesn't reflect on the existing contract lines. The following renewal options are provided for each contract line as a Drop Down list:

• Renew: Renewal of the coverage or subscription line.

• Keep duration: Available for subscription only, the duration of the line remains unchanged in a renewed contract. It remains the same as in the source contract.

• Do not renew: This means that the subscription line, and coverage line along with the covered assets aren't renewed when the contract is renewed.

Note: The scheduled process Automatically Renew Eligible Contracts always considers the header level Edit Renewal Process drop-down list value to determine a contract's eligibility for renewal over the Renewal Process drop-down list value set in the Negotiations and Renewal tab.

Contracts can be renewed either manually or automatically. The user can manually renew a contract using the renew action, or the application can be configured to automatically renew a contract. The application uses renewal rules to determine the renewal defaults. The life cycle of a renewal contract is similar to a newly authored contract. However, you can configure a different life cycle for a renewal contract using the Event Model configuration. You can configure an event model to route the renewal contract to the customer for acceptance, or to the contract administrator for internal approval. You can also activate the contract without either Customer Acceptance or Internal Approval. The application, therefore, evaluates renewal rules template configured in the contract rules to retrieve the renewal process, customer acceptance criteria and internal approval criteria.

The following table provides an overview of the combinations of the Renewal Process, Customer Acceptance, and Internal Approval criteria:

Renewal Process	Customer Acceptance	Internal Approval	Description
Automatic	Not Required	Not Required	The application renews and activates the contract.
Automatic	Not Required	Required	The application renews and submits the contract for approval.
Automatic	Required	Required/Not Required	The application renews the contract and leaves it in the contract administrator's queue for further action. You can configure event notification rules to automatically send the contract to the customer for acceptance.
Manual	Required/Not Required	Required/Not Required	The application renews the contract and leaves it in the contract administrator's queue for further action.
Do not renew	N/A	N/A	The application doesn't renew the contract.