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Renewals

A renewal is a copy of an active or expired contract that you can edit before making it active.

You can renew an active or expired contract. When you create a renewal for an active or expired contract, this creates a copy of that contract in draft status. You can edit the same fields on a renewal with the exception of the Status and Type Fields.

When you create a renewal, the values of custom fields on the contract are copied to the renewal and the values of custom fields belonging to related contract line items are copied to the renewal lines.

When you activate a renewal, it becomes the active contract and billing schedules are created from the contract start date up to today plus the number of months specified in the Billing Schedule Number of Months field in the FinancialForce Billing Central Settings custom setting. See Billing Schedule Number of Months.

Notes: Notes Notepad

Renewals cannot be generated from a change request.

You cannot create a change request from a renewal.

Billing schedules and billing documents cannot be generated from a renewal.

Adjusting Prices

When creating renewals for contracts, you can:

Use existing prices
Adjust prices by a percentage
Update prices using a price book.

Percentage

When you create a renewal you can choose to update the prices by a percentage. This also updates the unit prices on price breaks for contract line items with tiered or volume based pricing. Here is an example of the way in which prices are changed:

Example of Unit Prices Adjusted by Percentage on a Renewal
Product	Units	Pricing Type	Unit Price on Active or Expired Contract		Unit Price on Renewal with +10% Adjustment
Product A	100	Fixed	$3		$3.30
Product B	50	Tiered	Pricing Structure with quantity breaks:		Pricing Structure with quantity breaks:
			0-20 units	$5	0-20 units	$5.50
			21-40 units	$4	21-40 units	$4.40
			41-60 units	$3	41-60 units	$3.30
Product C	10	Volume	Pricing Structure with quantity breaks:		Pricing Structure with quantity breaks:
			0-5 units	$10	0-5 units	$11
			6-15 units	$8	6-15 units	$8.80

Price Book

When you create a renewal you can choose to update the prices from a price book. This also updates the unit prices on price breaks for contract line items with tiered or volume based pricing. Prices on contract line items are only updated from a price book if the price book contains a price for that product with the same pricing type as the contract line item. Here is an example of the way in which prices are changed:

Example Active or Expired Contract
Product	Units	Pricing Structure	Pricing Type	Unit Price
Product A	30	–	Fixed	$4
Product B	25	–	Fixed	$10
Product C	50	Pricing Structure 1	Tiered	Pricing Structure with quantity breaks:
				0-20 units	$5
				21-40 units	$4
				41-60 units	$3
Product D	10	Pricing Structure 2	Volume	Pricing Structure with quantity breaks:
				0-5 units	$10
				6-15 units	$8
Product E	3	–	Fixed	$40
Product F	15	Pricing Structure 3	Volume	Pricing Structure with quantity breaks:
				0-9 units	$12
				10-15 units	$9.80

Example 2016 Price Book
Product	Units	Pricing Structure	Pricing Type	Unit Price
Product A	30	–	Fixed	$5
Product C	50	Pricing Structure 10	Tiered	Pricing Structure with quantity breaks:
				0-20 units	$5
				21-40 units	$4
				41-60 units	$3
Product E	3	Pricing Structure 11	Volume	Pricing Structure with quantity breaks:
				0-20 units	$40
				21-50 units	$36.80
Product F	15	–	Fixed	$100

Example Renewed Contract
Product	Units	Pricing Structure	Pricing Type	Unit Price		Reason
Product A	30	–	Fixed	$5		Unit price updated. Product is in 2016 price book and pricing type of contract line item matches the price book.
Product B	25	–	Fixed	$10		Unit price not updated. Product is not in the 2016 price book.
Product C	50	Pricing Structure 10	Tiered	Pricing Structure with quantity breaks:		Unit prices updated. Product is in 2016 price book and pricing type of contract line item matches the price book.
				0-20 units	$5
				21-40 units	$4
				41-60 units	$3
Product D	10	Pricing Structure 2	Volume	Pricing Structure with quantity breaks:		Unit prices not updated. Product is not in the 2016 price book.
				0-5 units	$10
				6-15 units	$8
Product E	3	–	Fixed	$40		Unit price not updated. Product is in 2016 price book, but the pricing type of the contract line item does not match the price book.
Product F	15	Pricing Structure 3	Volume	Pricing Structure with quantity breaks:		Unit prices not updated. Product is in 2016 price book, but the pricing type of the contract line item does not match the price book.
				0-9 units	$12
				10-15 units	$9.80

Date Fields

When you create a renewal, the date fields are calculated from the active contract.

Key: X – Length of the active or expired contract in days.

Contract Renewal Date Formulas
Field	Formula Used to Calculate Dates on Renewals
Start Date	Active or expired contract End Date + 1 day
End Date / Original End Date	Active or expired contract End Date + 1 day + X Note: Note If the Original End Date field of a contract that is being renewed contains a date, the duration of the renewal is calculated using this date instead of the contract End Date. The Original End Date field is then cleared on the renewal that is created.
First Bill Date	Renewal Start Date + Number of days difference between the active or expired contract Start Date and First Bill Date
Renewal Reminder	Renewal End Date - Number of days difference between the active or expired contract End Date and Renewal Reminder Date

Contract Line Item Renewal Date Formulas
Field	Renewal Date Option Chosen	Formula Used to Calculate Dates on Renewals
Start Date	Use existing duration	Renewal Start Date + Number of days difference between the active or expired contract Start Date and the contract line item Start Date.
Start Date	Extend to full length of contract	Use Contract Renewal Start Date
End Date	Use existing duration	Active or expired contract line item End Date + X + 1 day
End Date	Extend to full length of contract	Use Contract Renewal End Date
First Bill Date	Use existing duration	Start Date of the renewal line item + Number of days difference between the active or expired contract line item Start Date and First Bill Date
First Bill Date	Extend to full length of contract

Note: Note Notepad

The dates on contract line items are calculated depending on whether you choose to extend contract line items to the full length of the contract or use their existing duration. If you select 'Use existing duration', the first bill date for contract lines that do not have a first bill date is set using the first bill date of the active contract.

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