Business rules installed with Contract Management

  • Release version: Australia
  • Updated March 12, 2026
  • 2 minutes to read
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    Summary of Business Rules Installed with Contract Management

    The business rules included with the Contract Management module enhance contract handling by automating key calculations, updates, and validations. These rules ensure accurate tracking, compliance, and efficiency throughout the contract lifecycle.

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    Key Features

    • Calculate projected costs: Automatically determines monthly and annual contract costs based on changes in costs or payment schedules.
    • Calculate totals with tax: Computes tax and total costs upon contract creation or updates.
    • Contract history: Maintains historical records of changes to contract terms, start, and end dates.
    • Create approval record: Initiates contract approval workflows when contracts are sent for review.
    • Flag terms and conditions: Manages the association of Terms and Conditions records with contracts, updating their use status accordingly.
    • Activate count for manual licenses: Tracks the installation count of software licenses when instances are created or deleted.
    • Manage contract lifecycle: Automates updates for contract renewals and extensions, including adjusting relevant dates and costs.
    • Post outage to news: Publishes outage notifications on the knowledge table for services affected.
    • Update contract cost per asset: Adjusts the unit cost based on the total contract cost and the number of assets involved.
    • Update contract lifetime cost: Calculates the total lifetime cost of a contract by summing its expense lines.
    • Updates after contract dates change: Ensures accurate updates of user and asset records if contract end dates are modified.
    • Verify contract’s start and end dates: Confirms the validity of contract timelines and renewal dates.
    • Verify purchase agreement discount price: Ensures that discount values for purchase agreements are within a valid range (0-99).

    Key Outcomes

    By implementing these business rules, ServiceNow customers can expect improved accuracy in cost management, streamlined contract workflow processes, and enhanced compliance with contract terms. This leads to more efficient contract administration and better resource allocation throughout the organization.

    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.