Best way to handle software subscriptions?

loberle · ‎03-31-2016

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 · ‎03-31-2016

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

View solution in original post

Community Alums · ‎03-31-2016

Hmmmm... I'm not quite sure I understand your setup, Lisa.

If you are going to use rate cards, there are a couple additional things you should know:

To allocate expense lines back to the Software License record, you will need to associate the Software Licenses to the Rate Cards. This will create a little additional work.
I would create a Rate Card for each of your licenses here. It makes the management easier.
The amount you enter into the rate card should match the amount you pay for the interval, not the annual amount. So if you configure your rate card to apply monthly, it should have the monthly amount listed.

loberle · ‎04-01-2016

Hi Ben,

Could you possible send me your contract info offline? I would like to go more in depth with the issue.