Enter the New Price that is to be applied to all line products

4. Click the Apply button to save. The new price is cascaded in the appropriate proportions to the final price of each covered level.

5. Refresh the billing schedule to reflect the new values.

2.8.4 Renewing Contract

2.8.4.1 Contract Renewal

The process of renewing a contract involves making a copy of an existing, active contract as of a point in time and changes the new contract dates to reflect a period of time similar to the existing contract, beginning on the first day after the existing contract expires. Other attributes of the new contract may also be changed such as pricing. Because there may be an overlap between the time the existing contract creates the renewal contract and the time the renewal contract goes into effect, be aware that changes to the existing contract will not update the renewal contract. For example, if a contract is renewed 90 days prior to expiration and the customer requests changes to their existing contract 15 days after the renewal process has begun, the changes made to the existing contract will not be reflected on the renewed agreement.

The renewal and pricing attributes are optionally maintained in the individual contracts and apply to both contract categories “Warranties and Extended

Warranties” and “Service Agreements”. If not specified in contract, the renewal and pricing attributes are retrieved from the renewal event or from the global defaults in the following order of precedence:

■ Event

■ Party

■ Organization

■ Global

Some of the renewal information is held in profile options which determines what information will be obtained from the profile option settings upon contract renewal.

By setting the profile option OKS: Enable Sales Credits to yes, the system will use the following profile options to create the renewal agreement:

Managing Contracts

OKS: Sales Person or OKS: Use JTF - determines the sales person for the sales credit form and for the vendor contact on the contract summary. Either set Use JTF to Yes or set a name in the Sales Person profile option. If you do both, Use JTF will take precedence. If you do not set either, the QA check will fail asking for a sales person to be assigned. You may manually add additional sales people to the Sales Credits form after the renewal agreement has been created.

OKS: Revenue Type Distribution - assigns the percentage of revenue to the sales person whose name was determined by the Sales Person or Use JTF profile options. Sales Credits must total 100% in order to pass the QA check. If you add additional sales people to the sales credits form, remember to distribute revenue to them until the total is 100%.

OKS: Revenue Type - indicate whether this revenue is quota or non-quota for the sales person that was defaulted.

OKS: Vendor Contact - adds a vendor contact role to the renewal agreement.

This information is in addition to copying any vendor contact roles and names that are on the original contract. Ideally, you should set this profile option to salesperson, however that is not required. The vendor contact name that will populate this role is the person who is identified by the JTF territory assignment if OKS: Use JTF is set to yes, or will be the salesperson specified in the Sales Person profile option.

If Enable Sales Credits is set to no, the information from these profile options is not included in the renewal agreement nor is it copied from the original contract. No sales credit information will default to the renewal agreement; it would be entered manually.

Contract renewal consists of the following topics:

■ Renewal Types

■ Renewal Procedures

■ Renewal Consolidation

2.8.4.2 Renewal Types

Renewal types have been added so that the renewed contract isn’t automatically defaulted to the Entered status, requiring it to go through approval again. You can now set the renewal type on the Administration tab at the header to be one of four options:

■ Do Not Renew

■ Active Contract

Managing Contracts

■ Notify Salesrep

■ Submit for Approval

■ Electronic Renewal

“Do Not Renew” prevents the contract from being renewed.

“Active Contract” allows the contract to be renewed automatically and put straight to Active, no approval required, no human intervention, this is called “Evergreen”.

“Notify Salesrep” places the renewed contract into entered status and sends a notification to the sales representative who then must review it, make any necessary changes and submit it for approval.

“Submit for Approval”, creates a contract in entered status, automatically submits it for approval and sends a notification to the sales representative.

"Electronic Renewal" places the renewed contract into entered status and sends a notification to both the sales representative and the customer. The customer receives notification in the form of an email with a link to a web page where customer can review the quote and accept, reject, or request changes to the contract renewal.

Independent Conditions can be used to set the contract to auto renew a certain number of days prior to contract expiration. This period of time can be used to negotiate the terms of the contract and administer any required changes prior to the start date of the new contract. For setting up an Independent Condition, see

Defining Condition Templates in Oracle Contracts Core Concepts and Procedures.

2.8.5 Using Renewal Procedures

Once a contract has been renewed, use the processes below to prepare it for approval:

■ Selecting Party

■ Repricing a Contract

■ Reviewing Renewal and Administration Rules

■ Defining Security Attributes

■ Determining Line Duration

■ Reviewing Pricing Attributes

Managing Contracts

2.8.5.1 Selecting Party

Before the renewed contract can be approved, changes may need to be made to the parties or contacts.

Steps