Fields for Configuring Renewal of Items

These fields on the Vertical Classifications section determine the renewal behavior of items.

Field Name	Description
Term/Contract Pricing Type	Select a contract pricing type for the item. The contract pricing type determines how the rate will be calculated for an item. These contract pricing types are available: Monthly - Item price entered on the Pricing subtab is treated as a monthly price. Annually - Item price entered on the Pricing subtab is treated as an annual price. Actual Item Price - Item price entered on the Pricing subtab is considered as the actual rate. If you select this option, the term won't be considered in the rate calculation. Not Applicable - Select this option if none of the other options are applicable for the item. For example, for Perpetual Licenses or non-renewing items.
Product Line	Choose which product line this item belongs to. A product line is a family of items that are organized around one flagship product. For more information, see Setting Up Product Lines for Contract Renewals.
Item Category	Select the item category where this item should be included in. The item category determines whether an item is renewed and also when it is billed. These item categories are available: License - Perpetual License - Term Maintenance - New Maintenance - Renewal Support - New Support - Renewal Services Services - Perpetual Training Other Hardware Parent Item Note: The Item Categories custom list is locked and can't be edited. Perpetual items aren't renewed and are paid in full up front. Examples of perpetual items are License - Perpetual, Services - Perpetual, Trainings, Hardware, and Other. For a perpetual item to appear on a renewal contract record, it must be accompanied by a corresponding maintenance item on the original contract. Both the perpetual item and the maintenance item must belong to the same product line. On a renewal contract record, perpetual items are listed in the Perpetual Contract Items field on the Contract Items subtab. Term-based items have start and end dates, and must have the Term/Contract Pricing Type field set to Monthly or Annually to be priced correctly in new and renewal transactions based on the Term In Months of the transaction line. Examples of term-based items are License - Term, Support - New, Support - Renewal, and Services. Term licenses are always renewed. Maintenance entitlements include software updates and support, are associated with perpetual licenses, and are always renewed. Support entitlements provide support for software only, are associated with term licenses, and are renewable.
Quantity Type	Select the quantity type that defines this item's units. The quantity type affects the renewal behavior of an item. Important: The Quantity Type must match the selected Item Category for the item. An incorrect combination may cause unprocessed renewals for the item. These quantity types are available: Product License - This refers to core licensed items. You should have at least one product set up in your account per product line. A product license creates a Product and an Install Base record to represent a new sale. A follow-on sale creates an Install Base record tied to the existing Product record. Product License quantity type is used for items under these item categories: License - Perpetual License - Term Services Module License - This refers to add-on items related to products. A module license can't exist without a corresponding Product, and shouldn't be sold this way. Module License quantity type is used for items under these categories: License - Perpetual License - Term Services M/S Entitlement - This quantity type is used for items with item category of maintenance or support. Maintenance and support items require start and end dates that are a key part of the renewals automation. If the Require License for M/S Items (Renewal) preference is enabled, transactions with an M/S item must also have an item with a license quantity type for it to be processed for renewal. User License - Production, User License - Other - This represents the seats sold for the products and modules within the product line. Production Users can be differentiated from Other Users for reporting purposes. User License quantity type is used for items under these item categories: License - Term Training CPU License - This refers to the number of Central Processing Units or CPU Cores that are licensed to the customer. CPU License quantity type is used for items under these item categories: Hardware License - Term Other - This quantity type can be used for any item that doesn't fit in any of the preceding quantity types.
Renew With	Select an item to replace the current item when it is renewed. This setting is for renewable items only, that is, items with an item category of License - Term, Maintenance, or Support. Often, an item is renewed with itself, but you can choose any item in this field. You can also use this setting for versioning. For example, Version 1 can renew with Version 2.
Maintenance/Support Type	For maintenance or support items, if you offer tiered maintenance or support, choose the tier in this field. For information about maintenance and support types, see Setting Up Maintenance/Support for Contract Renewals.
Maintenance/Support %	This field shows the percentage price of the maintenance or support type that you selected.
Opt-Out M/S	Check this box if this item isn't considered when calculating the cost of support or maintenance. For example, you don't count a sandbox license when determining the cost of support.
Replaced With	If the item has an end of life date after which it is no longer offered, choose the item that replaces the current item. The item you select here is added to future renewals in place of the item you're entering.
End of Life Date	Enter the date after which this item is no longer offered.
End of M/S Date	Enter the date after which support and maintenance will no longer be offered for this product. This is often some time after the end of life date.
Renewals Exclusion	Check this box if you don't want this item to be renewed.
M/S Pricing Option	If you're creating a maintenance or support item, select the pricing option that you want to use to determine the M/S item price. When you're creating a new item record, this field defaults to the value that you selected in the Default M/S Pricing Option preference. For more information, see Setting Up Contract Renewals Preferences. When you use this M/S item on transactions, the pricing option that you set on the item record is saved on the transaction and on the generated contract item record. If you set this field to blank, the value in the Default M/S Pricing Option preference will be applied whenever this item is used on contracts. If the item is set to renew with itself, the stored M/S Pricing Option value on the contract item record will be used for the renewal item. If the item is set to renew with a different item, the M/S Pricing Option value on the item record for the Renew With item will be used for the renewal item.

Field Name

Description

Term/Contract Pricing Type

Select a contract pricing type for the item. The contract pricing type determines how the rate will be calculated for an item.

These contract pricing types are available:

Monthly - Item price entered on the Pricing subtab is treated as a monthly price.
Annually - Item price entered on the Pricing subtab is treated as an annual price.
Actual Item Price - Item price entered on the Pricing subtab is considered as the actual rate. If you select this option, the term won't be considered in the rate calculation.
Not Applicable - Select this option if none of the other options are applicable for the item. For example, for Perpetual Licenses or non-renewing items.

Product Line

Choose which product line this item belongs to. A product line is a family of items that are organized around one flagship product. For more information, see Setting Up Product Lines for Contract Renewals.

Item Category

Select the item category where this item should be included in. The item category determines whether an item is renewed and also when it is billed.

These item categories are available:

License - Perpetual
License - Term
Maintenance - New
Maintenance - Renewal
Support - New
Support - Renewal
Services
Services - Perpetual
Training
Other
Hardware
Parent Item

Note:

The Item Categories custom list is locked and can't be edited.

Perpetual items aren't renewed and are paid in full up front. Examples of perpetual items are License - Perpetual, Services - Perpetual, Trainings, Hardware, and Other. For a perpetual item to appear on a renewal contract record, it must be accompanied by a corresponding maintenance item on the original contract. Both the perpetual item and the maintenance item must belong to the same product line. On a renewal contract record, perpetual items are listed in the Perpetual Contract Items field on the Contract Items subtab.

Term-based items have start and end dates, and must have the Term/Contract Pricing Type field set to Monthly or Annually to be priced correctly in new and renewal transactions based on the Term In Months of the transaction line. Examples of term-based items are License - Term, Support - New, Support - Renewal, and Services. Term licenses are always renewed.

Maintenance entitlements include software updates and support, are associated with perpetual licenses, and are always renewed. Support entitlements provide support for software only, are associated with term licenses, and are renewable.

Quantity Type

Select the quantity type that defines this item's units. The quantity type affects the renewal behavior of an item.

Important:

The Quantity Type must match the selected Item Category for the item. An incorrect combination may cause unprocessed renewals for the item.

These quantity types are available:

Product License - This refers to core licensed items. You should have at least one product set up in your account per product line.

A product license creates a Product and an Install Base record to represent a new sale. A follow-on sale creates an Install Base record tied to the existing Product record. Product License quantity type is used for items under these item categories:
- License - Perpetual
- License - Term
- Services
Module License - This refers to add-on items related to products. A module license can't exist without a corresponding Product, and shouldn't be sold this way. Module License quantity type is used for items under these categories:
- License - Perpetual
- License - Term
- Services
M/S Entitlement - This quantity type is used for items with item category of maintenance or support.

Maintenance and support items require start and end dates that are a key part of the renewals automation. If the Require License for M/S Items (Renewal) preference is enabled, transactions with an M/S item must also have an item with a license quantity type for it to be processed for renewal.
User License - Production, User License - Other - This represents the seats sold for the products and modules within the product line. Production Users can be differentiated from Other Users for reporting purposes. User License quantity type is used for items under these item categories:
- License - Term
- Training
CPU License - This refers to the number of Central Processing Units or CPU Cores that are licensed to the customer. CPU License quantity type is used for items under these item categories:
- Hardware
- License - Term
Other - This quantity type can be used for any item that doesn't fit in any of the preceding quantity types.

Renew With

Select an item to replace the current item when it is renewed. This setting is for renewable items only, that is, items with an item category of License - Term, Maintenance, or Support.

Often, an item is renewed with itself, but you can choose any item in this field. You can also use this setting for versioning. For example, Version 1 can renew with Version 2.

Maintenance/Support Type

For maintenance or support items, if you offer tiered maintenance or support, choose the tier in this field. For information about maintenance and support types, see Setting Up Maintenance/Support for Contract Renewals.

Maintenance/Support %

This field shows the percentage price of the maintenance or support type that you selected.

Opt-Out M/S

Check this box if this item isn't considered when calculating the cost of support or maintenance. For example, you don't count a sandbox license when determining the cost of support.

Replaced With

If the item has an end of life date after which it is no longer offered, choose the item that replaces the current item. The item you select here is added to future renewals in place of the item you're entering.

End of Life Date

Enter the date after which this item is no longer offered.

End of M/S Date

Enter the date after which support and maintenance will no longer be offered for this product. This is often some time after the end of life date.

Renewals Exclusion

Check this box if you don't want this item to be renewed.

M/S Pricing Option

If you're creating a maintenance or support item, select the pricing option that you want to use to determine the M/S item price.

When you're creating a new item record, this field defaults to the value that you selected in the Default M/S Pricing Option preference. For more information, see Setting Up Contract Renewals Preferences.

When you use this M/S item on transactions, the pricing option that you set on the item record is saved on the transaction and on the generated contract item record. If you set this field to blank, the value in the Default M/S Pricing Option preference will be applied whenever this item is used on contracts.

If the item is set to renew with itself, the stored M/S Pricing Option value on the contract item record will be used for the renewal item. If the item is set to renew with a different item, the M/S Pricing Option value on the item record for the Renew With item will be used for the renewal item.

General Notices