Core TSIs : Contracts : Working with Contracts : Using contract options : Examples of using renewal options : Renewal options - example 1
Renewal options - example 1
Scenario
This example shows a contract with an initial duration of five years. The contract can be renewed twice for five years. After these renewals have been used, the contract continues through recurring yearly renewals.
Diagram of a contract with an end date and two renewal optionsDiagram of a contract with an end date and two renewal options
Contract
Field
Value
Start date contract
January 1, 2021
Duration
5 years
Notice term
3 months
Proposed expiration date
December 31, 2025
Renewal options
Description
Priority
Renewal term
Repeat renewal
Status
Renewal: 5 years
1
5 years
No
Active
Renewal: 5 years
2
5 years
No
Active
Yearly renewal
3
1 year
Yes
Active
Applying the option
The renewal option can be applied:
• manually by using the Automatic renew action on the Contracts selection level;
• automatically through an action definition in the Alerts TSI (see Automated processing of renewal options).
Diagram of contract with an end date, after applying renewal optionsDiagram of contract with an end date, after applying renewal options
Result
After a renewal option has been applied:
Field
New value
Status
Renewed
Duration
Extended by the renewal term
Proposed expiration date
Extended by the renewal term
Option counter
Incremented
If Renew together with contract is set to Yes, the related contract lines are renewed as well.