Hi Bhushan,
An Underpinning Contract (UC) is a contract that you have with your supplier (vendor), i.e., external parties who need to achieve service targets for you, but for them, you are a customer. The UC must also support SLA parameters and you use the UC to ensure that you get what is expected for the money you pay to the external company.
Setting up an SLA/OLA/underpinning contract
Open any standard web browser.
Type the Service-Now instance web address (https://{instance_name}.service-now.com) provided by your company in the address bar. Now, enter your credentials in respective fields.
Type service management in the search box and Service-Now will search the Service Level Management application for you. Click on the SLA Definitions module, as shown here:
Service-Now management
You will now be able to see the following screen, where you can see all SLA records. Click on the New button to create new SLA: 
Create new SLA record
It is important to note that an SLA has three conditions (state, pause and stop) and if conditions are not set properly then the SLA may be cancelled automatically. Now configure the SLA definition as follows: Click on Submit.
- Name:
AD Server Issue - Type :
SLA or OLA or UC - Table :
Incident[incident] - Workflow:
Default SLA workflow(auto attached)
SLA configuration part 1 - Duration type :
User specified duration - Duration: 4 Hours
- Schedule :
8-5 weekdays
SLA configuration part 2
- Start condition: Define the start condition of the SLA, such as timer start condition, as on a new state or on a ticket description. You may choose the state, category, subcategory, or business services to kick off
- Category:
Software - Subcategory:
Business Software - Business Services:
Active Directory
SLA start condition
- Pause condition: Define the pause condition of the SLA such as timer pause conditions as when you want any details from end users you can make the pause condition when the state is awaiting user info. Awaiting Problem and so on.
SLA pause condition
- State: Pick Awaiting Problem, Awaiting User Info, or Awaiting Vendor
- Stop condition: Finally, you need to configure when the timer should end, such as when the task state is resolved or closed. Note that out of the box, Service-Now has a business rule that closes resolved incidents after 5 days
SLA stop condition
As an output, when these conditions are matched the SLA AD Server Issues will start execution.
