Renewal options - example 1
Case: contract with an end date (specified duration). The duration of the contract is five years, with two renewal options for five years. After that, a repeated renewal of one year.
Diagram of a contract with an end date and two renewal optionsDiagram of a contract with an end date and two renewal options
The following settings are used:
Contract
Field
Field value
Start date contract
1/1/2011
Duration
5 years
Notice term
3 months
Proposed expiration date
31/12/2015
Renewal option 1
Field
Field value
Description
Renewal 5 years
Priority
1
Renewal term
5 years
Repeat renewal
No
Status
Active
Renewal option 2
Field
Field value
Description
Renewal 5 years
Priority
2
Renewal term
5 years
Repeat renewal
No
Status
Active
Renewal option 3
Field
Field value
Description
Yearly renewal
Priority
3
Renewal term
1 year
Repeat renewal
Yes
Status
Active
Applying the option
The renewal option can be applied:
manually by choosing the Automatic renew option from the action menu at the Contracts selection level
or automatically by executing the action defined in Alerts .
Diagram of contract with an end date, after applying renewal optionsDiagram of contract with an end date, after applying renewal options
The red arrow is the current system date. The option will be applied if the proposed expiration date – term of notice is before the current system date.
1. Proposed expiration date – term of notice is before the current system date. Option 1 will be applied.
2. Proposed expiration date – term of notice is after the current system date. Option 3 will not be applied.
3. Proposed expiration date – term of notice is before the current system date. Option 4 will be applied and a new option will be active (because of repeated renewal)
After the renewal is applied the following fields will be changed:
Field
New value
Status
Renewed
Duration
+ duration renewal term
Proposed expiration date
+ duration renewal term
Option counter
1
* 
The contract lines (=amounts) will also be renewed if the Renew together with contract field is set to Yes.