Business rules installed with Contract Management

  • Release version: Xanadu
  • Updated August 1, 2024
  • 2 minutes to read
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    Summary of Business rules installed with Contract Management

    Contract Management in ServiceNow installs several business rules designed to automate and enforce key contract lifecycle processes. These rules handle calculations, validations, approvals, and updates related to contracts, terms and conditions, software licenses, and rate cards. Their purpose is to ensure accurate contract data, streamline workflows, and maintain consistency across contract-related records.

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    Key Features

    • Cost Calculations: Automatically calculate projected monthly and annual costs, tax amounts, total costs, lifetime costs, and cost per asset associated with contracts.
    • Contract Lifecycle Management: Manage contract extensions, renewals, and approval workflows by updating contract dates, costs, and triggering condition checks when changes occur.
    • Data Consistency and Validation: Validate contract start and end dates, renewal dates, and purchase agreement discount values to maintain data integrity.
    • Contract History Tracking: Store historical changes to contract start and end dates, and terms and conditions.
    • Terms and Conditions Management: Automatically flag terms and conditions as in use or not based on their association with contracts.
    • Software License Tracking: Track and update the number of computers on which a software license instance is installed.
    • Asset and User Association Updates: Update asset and user contract-related date fields when contract or rate card dates change.
    • Service Outage Notifications: Post news articles regarding service outages to the knowledge base.

    Key Outcomes

    By leveraging these business rules, ServiceNow customers can expect improved accuracy in contract cost forecasting and financial tracking, automated approval and renewal processes, and enhanced governance of contract data. The rules reduce manual effort, mitigate errors in contract management tasks, and provide timely updates across related assets and licenses. Ultimately, this enables more efficient contract lifecycle management and better alignment with organizational policies and compliance requirements.

    Business rules are added with Contract Management.

    Name Table Description
    Calculate projected costs (Reports) Contract [ast_contract] Calculates the projected monthly and annual costs for a contract when costs or payment schedule changes.
    Calculate totals with tax Contract [ast_contract] Calculates the Tax cost and Total cost fields for a contract when the contract is created or updated.
    Contract history Contract [ast_contract] Stores history when the start, end, or terms and conditions of a contract change.
    Create approval record Contract [ast_contract] Updates contract Terms and Conditions and starts the contract approval workflow when a contract is sent for review.
    Flag terms and conditions Terms and Conditions [clm_m2m_contract_and_terms] Sets the Use flag on a Terms and Conditions record to true after the record is associated with a contract or to false after the record is disassociated from a contract.
    Activate count for manual licenses Software License Instance [ast_license_software_instance] Calculates and updates the number of computers a particular license is installed on when a software license instance is created or deleted.
    Manage contract lifecycle Contract [ast_contract] This business rule:
    • Updates the end date of a contract when a contract extension has been approved.
    • Renews the contract, updating its start date, end date, and base cost (if cost adjustments must be applied) when a contract renewal has been approved and the renewal has reached its start date.
    • Runs the condition checks to evaluate if dates need to be changed when a contract is approved, or an extension or renewal is approved, or the start or end dates have changed.
    Post outage to news Service [cmdb_ci_service] Posts a news article on the knowledge table when there is an outage.
    Update contract cost per asset Asset Covered [clm_m2m_contract_asset] Updates the cost per unit value based on the total cost and number of assets associated to the contract.
    Update contract lifetime cost Contract Rate Card [fm_contract_rate_card] Calculates the lifetime cost of the contract by calculating the sum of the contract expense lines.
    Updates after contract dates change Contract [ast_contract] Updates the Date added and Date removed fields for all assets and users associated with a contract if the contract end date changes.
    Updates after rate card dates change Contract Rate Card [fm_contract_rate_card] Updates the related contract assets and users linked to the rate card when the end date is changed.
    Verify contract’s start and end dates Contract [ast_contract] Validates contract start and end dates and contract renewal start and end dates.
    Verify purchase agreement discount price Contract [ast_contract] For contracts with the contract model Purchase Agreement, the business rule validates that the Discount field does not contain a value less than zero or greater than 99.