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<ManualTopic ID="/baanerp/ts/onlinemanual/000313" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Contract renewal</Title>
		<Keyword><Level1>Renewal</Level1>
			<Level2>service contract</Level2>
		</Keyword>
		<Keyword><Level1>service contract</Level1>
			<Level2>renewal</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>For service contracts that expire, service sales people can be notified for taking appropriate actions such as contacting the business partner about the service-contract expiry. In <GUIRef href="/baanerp/ts" role="package">Service</GUIRef>, you can allow <Link href="/baanerp/ts/glossary/glossary#000378" role="glossary">contract renewal</Link> to these service contracts.</Paragraph>
		<Paragraph>Depending on the selected option, the service contracts that are about to expire will be selected and sent to the sales representative who is responsible for the business partner of the service contract.</Paragraph>
		<Note><SectionTitle>Note</SectionTitle>
			<List><ListItem>If you want to allow renewal to a service contract, before you activate a contract, make sure that you select the <Link href="/baanerp/ts/ctm/tsctm3100m000#tsctm300.cryn" role="fieldhelp">Contract Renewal</Link> check box for that contract on the Contract Changes tab in the <GUIRef href="/baanerp/ts/ctm/tsctm3100m000" role="session">Service Contracts (tsctm3100m000)</GUIRef> session, and also specify a renewal period.</ListItem>
				<ListItem>To renew a single contract, use the <GUIRef href="/baanerp/ts/ctm/tsctm3120m000" role="session">Contract Changes (tsctm3120m000)</GUIRef> session.</ListItem>
				<ListItem>To renew multiple contracts, use the <GUIRef href="/baanerp/ts/ctm/tsctm3202m000" role="session">Generate Contract Changes (tsctm3202m000)</GUIRef> session.</ListItem>
			</List>
		</Note>
		<Paragraph>When the service contract is renewed, SSA ERP changes the prices and coverage term durations of the changed service contract. How prices and durations are changed is explained in the following examples below.</Paragraph>
	</GeneralSection>
	<ExampleSection><SectionTitle>Example 1</SectionTitle>
		<List><ListItem>A service contract has a duration of one (1) year.</ListItem>
			<ListItem>A linked coverage term has a duration of four (4) months.</ListItem>
			<ListItem>The price of the coverage term is 100 dollars and the price of the entire service contract is 1000 dollars.</ListItem>
			<ListItem>The service contract can be renewed for two (2) years.</ListItem>
		</List>
		<Paragraph>Prices and durations will be calculated as follows:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">New service-contract price = old price * (new duration/old duration).
New service-contract price = 1000 * (2 year/1 year).
New service-contract price = 2000 (dollar).

New price of coverage term = old price * (new duration/old duration).
New price of coverage term = 100 * (8 month/4 month).
New price of coverage term = 200 (dollar).

New duration of coverage term = old duration * ratio of contract durations.
New duration of coverage term = 4 months * (2/1).
New duration of coverage term = 8 months.</Paragraph>
		</Formula>
	</ExampleSection>
	<Note><SectionTitle>Note</SectionTitle>
		<List><ListIntro>The coverage terms that are linked to a service-contract, can have a duration period in the following two combinations:</ListIntro>
			<ListItem>Year, quarter or month.</ListItem>
			<ListItem>Week or day.</ListItem>
		</List>
	</Note>
	<ExampleSection><SectionTitle>Example 2</SectionTitle>
		<List><ListItem>A service contract has a duration of one (1) year.</ListItem>
			<ListItem>A linked coverage term has a duration of one (1) quarter.</ListItem>
			<ListItem>The price of the coverage term is 100 dollars and the price of the entire service contract is 1000 dollars.</ListItem>
			<ListItem>The service contract can be renewed for six (6) months. Note that the duration of the renewed service contract is decreased.</ListItem>
		</List>
		<Paragraph>Prices and durations will be calculated as follows:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">New service-contract price = old price * (new duration/old duration).
New service-contract price = 1000 * (1/2 year/1 year).
New service-contract price = 500 (dollar).

New price of coverage term = old price * (new duration/old duration).
New price of coverage term = 100 * (2 month/4 month).
New price of coverage term = 50 (dollar).

New duration of coverage term = old duration * ratio of contract durations.
New duration of coverage term = 1 quarter * (1/2 year/1 year).
New duration of coverage term = 0.5 quarter.</Paragraph>
		</Formula>
		<Paragraph>Decimals are not allowed for duration. Therefore, the next possible duration is used, and the new duration is calculated as follows:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">New possible duration of coverage term = (0.5 * months).
New possible duration of coverage term = 1 month.</Paragraph>
		</Formula>
	</ExampleSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/ts/onlinemanual/000363" role="manual">To make changes to a single contract</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ts/onlinemanual/000361" role="manual">To renew multiple contracts</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
