Renewals
A renewal is a copy of an active or expired contract that you can edit before making it active.
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 and contract lines are copied to the renewal and renewal lines. If you do not want them to be copied, you can use the Exclude Fields on Renewals feature (in Feature Console) to identify custom fields that should not be copied to the renewal.
When you activate a renewal, it becomes an 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 Billing Central Settings custom setting.
Linking a Contract to Its Renewal Automatically
If you want a contract to be linked automatically to its renewal, enable the Automatically Populate Renewal Contract field in the Billing Central Settings custom setting. When renewing a contract, Billing Central then automatically populates the Renewal Contract field on the contract with a lookup to its renewal.
Ensure that the Renewal Contract field is added to your billing contract page layouts.
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:
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:
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 |
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 |
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.
Field | Formula Used to Calculate Dates on Renewals |
---|---|
Start Date |
Active or expired contract End Date + 1 day |
End Date / Original End Date |
This varies depending on whether you are setting the renewal's duration using days or months. See How Renewal Dates are Calculated. |
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 |
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. |
Extend to full length of contract | Use Contract Renewal Start Date | |
End Date | Use existing duration |
Renewal End Date - Number of days difference between the active or expired contract End Date and the contract line item 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 |
Extend to full length of contract |
Replicating Contract Duration as Months or Days
When creating a renewal you can choose whether the renewal duration is the same number of days, or the same number of months, as the original contract. Typically when renewing:
- Monthly or yearly contracts, replicate the contract duration as months.
- Weekly contracts, replicate the contract duration as days.
For more information and examples of the difference this can make to renewal start and end dates, see How Renewal Dates are Calculated.
In the Billing Central Settings custom setting, the Renew Contract Duration as Months field determines whether Billing Central uses months by default. When deselected, the default is to use days. You can override the default when renewing contracts.