Business rules installed with Contract Management

  • Release version: Yokohama
  • Updated January 30, 2025
  • 2 minutes to read
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    Summary of Business rules installed with Contract Management

    This collection of business rules is installed with the Contract Management application in ServiceNow (Yokohama release). These rules automate critical contract-related processes, including cost calculations, contract lifecycle management, approvals, validations, and integrations with related records such as terms and conditions, software licenses, assets, and service outage notifications.

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    Key Features

    • Cost Calculations: Automatically compute projected monthly and annual costs, tax amounts, total costs, lifetime costs, and update cost per asset based on contract details and associated expense lines.
    • Contract Lifecycle Management: Manage contract start and end dates, renewals, and extensions by updating contract fields and enforcing related conditions when approvals occur or dates change.
    • Approval Workflow: Trigger contract approval workflows by updating terms and conditions when a contract is sent for review.
    • Terms and Conditions Handling: Flag terms and conditions records as active or inactive depending on their association with contracts.
    • Software License Management: Track and update the number of installations per software license when license instances are created or deleted.
    • Outage Notification: Automatically post news articles about service outages in the knowledge base linked to the affected service.
    • Validation Rules: Ensure contract start/end dates and renewal dates are valid, and enforce discount price constraints for Purchase Agreement contract models.
    • Asset and User Associations: Update asset and user contract association dates when contract or rate card end dates change.

    Key Outcomes

    • Improved Accuracy: Automated calculations and validations reduce manual errors in contract cost management and compliance.
    • Streamlined Approvals: Integration with approval workflows ensures timely contract review and enforcement of contract terms.
    • Enhanced Contract Visibility: Historical tracking of contract changes and automatic notifications improve transparency and operational awareness.
    • Efficient Software License Tracking: Real-time updates on software license usage help maintain compliance and optimize license allocation.
    • Consistent Data Integrity: Validation of contract dates and discount fields maintains the integrity and validity of contract records.

    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.