5 Replies Latest reply on Oct 2, 2013 1:25 PM by Leslie Martensen

    Managing Auto-renewals

    Erik Talmadge Novice

      I have a question around auto-renewals and how to manage them in a given workspace.

       

      If I have a contract is effective Jan 1, 2013 and has a 1 year initial term and automatically renews for 2 additional periods of 1 year I set up the term attributes this way:

       

      Renewal Interval (in months) = 12

       

      Maximum number of Renewals = 2

       

      Remaining Renewals = auto-fill

       

      Effective Date = 01/01/2013

       

      Expiration Date = 12/31/2013

       

      Is this correct?  Will the system auto-renew, take one renewal on the list and continue the clock running.  Do I need the expiration date?

       

      Follow-up question, how are people managing catch-up entries (or legacy entries) for terms that may have already begun or the first term has already run its course?

       

      Thanks.

        • Re: Managing Auto-renewals
          Leslie Martensen Master

          Yes this is correct. In order for the auto renewal to work the expiration date must be set and must be set to the original expiration date in order to trigger the renewals correctly.

           

          Leslie Martensen

          Sr. Product Manager, Ariba Contracts

            • Re: Managing Auto-renewals
              Erik Talmadge Novice

              Leslie - Thanks for the response!  Happy to know we are doing our new agreement properly.  Now, what about the follow-up question "how are people managing catch-up entries (or legacy entries) for terms that may have already begun or the first term has already run its course?".  Any chance you can advise here too?

                • Re: Managing Auto-renewals
                  Leslie Martensen Master

                  Erik,

                   

                  Can you please email me more information. I am not sure I understand our question.

                   

                  Lmartensen@ariba.com


                  Thank you,

                  Leslie Martensen

                  • Re: Managing Auto-renewals
                    Gunilla Svensson Novice

                    Hi Erik,

                     

                    I understand your question, since we have had the same question (although never asking Ariba about it). Old, legacy contracts with the first expiration date years back, and that have been renewed (in old system) a number of times, need to be updated in Ariba somehow, in order to send notifications correctly for the current, new expiration date. For the few occasions this has happened to me, I did enter the first expiration date, and published. Since no automatic change of the expiration date would happen, since more then one renewal period had passed, I manually made a renewal amendment, and entered the current, new expiration date. Thus, notifications and future renewals work ok, but I will never see the history in Ariba as to how many previous renewals there were. I will only see the "original" expiration date (since I published with that first) and the current expiration date, and can manually calculate how many renewals there have been. Also, if I add e.g. "5" in the field "Maximum number of renewals, I will also get "5" in the field for "Remaining Renewals", even if is 3 years since the original expiration date.

                    It would be interesting to see if Leslie or Best Practice Center has an alternative way to deal with this.

                      • Re: Managing Auto-renewals
                        Leslie Martensen Master

                        Gunilla,

                         

                        What you are seeing is correct initially. The way the system works is that the task runs each night and will look at the auto renewal and update it by on year. This will happen every night until the contract renewal date is in the current year and then the contract status is change to published for the current year.   See example below:

                         

                        For instance, I load the following contract on 10/1/13:

                         

                        • Expiration Date: 1/1/10
                        • Renewal Count: 10
                        • Renewal Int: 12 months

                         

                        Night 1 Update (10/2/13):

                         

                        • Expiration Date: 1/1/11
                        • Renewal Count: 9
                        • Renewal Int: 12 months

                         

                        Night 2 Update (10/3/13):

                         

                        • Expiration Date: 1/1/12
                        • Renewal Count: 8
                        • Renewal Int: 12 months

                         

                        Night 3 Update (10/4/13)

                         

                        • Expiration Date: 1/1/13
                        • Renewal Count: 7
                        • Renewal Int: 12 months

                         

                        Night 4 Update (10/5/13)

                         

                        • Expiration Date: 1/1/14
                        • Renewal Count: 6
                        • Renewal Int: 12 months
                        • Workspace moves to ‘Published’

                         

                        Leslie