Best way to handle software subscriptions?

[loberle]

We have many licenses that are subscription based. What is the best way to enter these into the system?

I want to enter a record into the Software license asset table so that I can keep track of all the licenses centrally. Then I would enter a contract to associate to that subscription. I am not sure if there is a better way to enter since I can add additional licenses to the subscription at any time with different start/end dates and amounts.

Is it better to enter the subscription as you order them into the software license table or am I missing something.

I was then entering the contract into the Contract table but now I am finding I have a mix of records.

Some contracts are entered with a Contract Model of Subscription and some are entered as a Software License with a license type of subscription.

Questions..

How should I be handling all of the subscription licenses?

Where do I enter the financial piece? If I enter it in the Software License asset table, it will create the expense line

                  Or Do I enter it in the Contract area as a Rate Card then associate the Software license Asset to the contract.

Thanks

Lisa

[Community Alums · Accepted solution]

Hi Lisa,

Yes, the best way to handle subscription licenses is to enter the software license records and associate them with a contract as you describe. On the Contract, when you associate them as Assets covered under the contract, you identify the valid dates.

You only need one contract record if the terms and conditions and other details of the contract are the same. Use the Software License contract type and select Subscription or SaaS as the option (they function the same, but this helps you identify if the software is installed or runs in the cloud).

Then associate the contract with the Software Counter for the software. When it does the count, it factors in the valid time frames on the software licenses to determine how many software rights are owned.

I would handle the financial aspect differently depending on how you are paying for the licenses.

• If you paid for a year, two years, three years, etc. for the subscription, just put the cost for the license right on the Software license. This is a little easier to track if you are paying up front.
• If you pay for it monthly, quarterly, or on some other schedule, then I would set up Contract Rate Cards to track the expenses as they happen. This automates the tracking of that expense going out in a way that you do not get from the cost directly on the software license. You may want to make a note about this on the software license record in the Comments field.

Hope this helps,

Ben

[loberle]

Hi Ben,

Thanks for the info.

In what situation would you use the Contract with a Contract Model of Subscription?

[Community Alums]

I would use that for subscription type items that are not software licenses. Some examples:

• Security Certificates (ever gotten a message on a website telling you the security certificate expired?)
• Domain names
• Subscribed access to data items like:
  • marketing databases
  • stock photography
  • education sites, like lynda.com

Does this make sense?

Ben

[loberle]

Hi Ben,

I tried to use the rate cards but the calculations are off.

So I have a subscription that had dates from 10/1/2015-9/30/2016

I entered 3 different rate cards as we have added licenses in October, Jan, and April.

When I entered the rate cards, I adjusted the date as to when the rate card should start and determine the amount based on the number of months.

The system calculates the total amount as if they were a full twelve months.

Ideas?