difference between "Warranty" and "maintenance" contract

[ma kaiyue]

I have some questions about contract management, could you help me answer them
1. What is the difference between "Warranty" and "maintenance" contract? Which one is the contract used to maintain the asset?
2. When should the Parent contract be used? Is a parent contract for purchase or lease necessary if I want a new "Warranty" or "maintenance" contract?

I would be grateful if there is any relevant information.

Thanks in advance!

[Amitoj Wadhera · Accepted solution]

Hi @ma kaiyue ,

Sure, let's break down the concepts of warranty and maintenance contracts in Contract Management in HAM ServiceNow:

1. **Warranty Contract**:

- Think of a warranty like a promise from the manufacturer or seller that if something goes wrong with a product you bought within a certain time frame, they'll fix it or replace it for free.
- For example, imagine you buy a new laptop. The manufacturer might offer a one-year warranty that covers any hardware defects or malfunctions. So if your laptop suddenly stops working properly within that first year, you can contact the manufacturer, and they'll repair it or give you a new one at no cost to you.

2. **Maintenance Contract**:
- A maintenance contract is like having a service agreement with a professional to keep your belongings in good shape over time. It's like subscribing to a service that ensures your possessions are taken care of and working smoothly.
- For instance, let's say you have a photocopier machine in your office. You might sign a maintenance contract with a service provider. This contract could include regular check-ups, cleaning, and repairs to keep the photocopier running smoothly. If it breaks down or needs a part replaced, the maintenance agreement ensures someone is there to fix it promptly.

3. **Parent Contract**:
- Picture a parent contract as a big umbrella that covers several smaller contracts underneath it. It's a way to manage multiple agreements related to the same vendor, service, or asset all in one place.
- For example, imagine you're a business that has a long-term relationship with a software provider. Over the years, you've signed different contracts with them for various services: software licenses, maintenance, support, etc. Instead of managing each contract separately, you can group them all under one parent contract with the software provider. This parent contract acts as a central hub for all your agreements with them.

So, to answer your second question, whether you need a parent contract for a new warranty or maintenance contract depends on your organization's needs and existing contractual relationships. If you already have a parent contract with a vendor, you might want to include new warranty or maintenance agreements under it for easier management. However, if these are standalone agreements with no related contracts, you might not need a parent contract. It ultimately comes down to how you want to organize and manage your contracts efficiently.

If you find my response helpful, please consider marking it as the 'Accepted Solution' and giving it a 'Helpful' rating. Your feedback not only supports the community but also encourages me to continue providing valuable assistance.

Thanks,

Amitoj Wadhera

[Amitoj Wadhera · Accepted solution]

Hi @ma kaiyue ,

Sure, let's break down the concepts of warranty and maintenance contracts in Contract Management in HAM ServiceNow:

1. **Warranty Contract**:

- Think of a warranty like a promise from the manufacturer or seller that if something goes wrong with a product you bought within a certain time frame, they'll fix it or replace it for free.
- For example, imagine you buy a new laptop. The manufacturer might offer a one-year warranty that covers any hardware defects or malfunctions. So if your laptop suddenly stops working properly within that first year, you can contact the manufacturer, and they'll repair it or give you a new one at no cost to you.

2. **Maintenance Contract**:
- A maintenance contract is like having a service agreement with a professional to keep your belongings in good shape over time. It's like subscribing to a service that ensures your possessions are taken care of and working smoothly.
- For instance, let's say you have a photocopier machine in your office. You might sign a maintenance contract with a service provider. This contract could include regular check-ups, cleaning, and repairs to keep the photocopier running smoothly. If it breaks down or needs a part replaced, the maintenance agreement ensures someone is there to fix it promptly.

3. **Parent Contract**:
- Picture a parent contract as a big umbrella that covers several smaller contracts underneath it. It's a way to manage multiple agreements related to the same vendor, service, or asset all in one place.
- For example, imagine you're a business that has a long-term relationship with a software provider. Over the years, you've signed different contracts with them for various services: software licenses, maintenance, support, etc. Instead of managing each contract separately, you can group them all under one parent contract with the software provider. This parent contract acts as a central hub for all your agreements with them.

So, to answer your second question, whether you need a parent contract for a new warranty or maintenance contract depends on your organization's needs and existing contractual relationships. If you already have a parent contract with a vendor, you might want to include new warranty or maintenance agreements under it for easier management. However, if these are standalone agreements with no related contracts, you might not need a parent contract. It ultimately comes down to how you want to organize and manage your contracts efficiently.

If you find my response helpful, please consider marking it as the 'Accepted Solution' and giving it a 'Helpful' rating. Your feedback not only supports the community but also encourages me to continue providing valuable assistance.

Thanks,

Amitoj Wadhera

[ma kaiyue · Accepted solution]

Thank you very much for such a detailed reply, it was very useful to me, thanks again！

Regards,

Ma Kaiyue

[RobertMusch]

Using the example you have for a warranty why does Service Now have a Start and Stop date in the record.  Wouldn't it be more effected to use a duration and example Dell standard warranty for a computer is 3 years (36 months).  With the current way it is set up we purchase 50 computer this month the warranty starts on the day ship the continues for the 3 years.  Now next month we purchase another 50 computers we create the warranty record using the ship date and added the asset to this record.  Now next month purchase another 50 computer and we have to create a new warranty record since those systems start and stop date will be different.   Why not change this so you create the warranty 1 time with the duration of 3 years or months or better yet days, and when you add that warranty to the asset record the system can already calculated the start and stop date based of the received date or ship date if you are the manufacture.

[Amitoj Wadhera]

Hi @ma kaiyue ,

If you find my response helpful, please consider marking it as the 'Accepted Solution' and giving it a 'Helpful' rating. Your feedback not only supports the community but also encourages me to continue providing valuable assistance.

Thanks,

Amitoj Wadhera