About Agreement Renewals

The Agreement Renewal feature allows you to renew existing agreements that are expired or about to expire.

Using the Renew button in SM Agreements, you can renew an agreement anytime prior to or after its expiration date, as long as the following applies:

The agreement cannot have an existing renewal quote. If one exists, the agreement will not display in this form.
The agreement cannot have a pending amendment. If one exists, it displays in the grid, but you must either delete or activate the amendment (using the Edit Agreement button) before you can create renewal quote.
There are no pending (open) invoices. If pending invoices exists, you must cancel or process them.

When you renew an agreement, the system automatically creates a renewal quote, copying all of the information from the originating agreement, including custom fields; however, it does not copy notes entered for the originating agreement, agreement services, or billing schedules. You can edit all information on the renewal except the agreement description, alternate agreement, and customer. This includes setting up new services on the work schedule or deleting existing ones, adding or deleting service work schedule tasks, and adjusting budgets and labor allocations. If you add or delete periodic services that are billed separately, make sure to adjust the billing schedule accordingly.

After you complete edits to the renewal quote, select the Activate the button to open the SM Agreement Activation form and complete the process. For more information about activating agreement renewals, see SM Agreement Activation / Deactivation Form.

Note: If you have multiple agreements due for renewal at the same time, you can use the SM Agreement Renewal form to create, edit, and activate the renewals. For more information, see SM Agreement Renewal.

Renewal Term & Pricing

The renewal quote is set for the same term as the originating agreement, with the effective date starting one day after the expiration date of the originating agreement. For example, if the originating agreement term was 10/1/11 - 09/30/12 (1 year), the renewal will have an Effective Date of 10/1/12 and an Expiration Date of 09/30/13. You can adjust the term as applicable, as long as it does not overlap any existing active, expired, or terminated revisions for the agreement.

The agreement price for a renewal is set equal to the original agreement price, regardless of how many billings have been processed. The only time the renewal price will differ from the original agreement price is if the agreement price was modified for a revision prior to the current renewal; in which case, it will default to the last price change for the agreement. Agreement services that are priced separate from the agreement (Periodic and Time of Service) are handled in the same manner. You can adjust the agreement and service pricing as needed.

Work/Task Schedules and Service Dates

When you renew an agreement, the system copies the work schedules defined for agreement services (in SM Service, Schedule tab), as well as task schedules defined in SM Agreement Task Schedule. Service dates generated for the originating agreement (and displayed on the Work Orders tab) will be left intact, including those generated for any revisions/versions prior to the renewal. When you activate the renewal, the system will generate new service dates based on the defined work or task schedules and the new agreement term. For more information about service work schedules and task scheduling, see Setting up Service Work Schedules and SM Agreement Task Schedule.

Billing Schedule

In instances where billing schedules are auto-scheduled using the Frequency drop-down, the new term's billing will reflect this frequency. In cases where the auto-scheduling was not used, the system copies the billing dates (agreement and periodic services billed separately) to the renewal, incrementing the dates based on the new term. For example:


Original Term	Billing Dates	Renewal Term	Billing Dates
1/1/17 – 12/31/17	03/30/17	1/1/18 – 12/31/18	03/30/18
	06/30/17		06/30/18
	09/30/17		09/30/18
	12/30/17		12/30/18

Note: If you extend the term of the renewal (say from 1 year to 2 years), the system does not automatically add additional billing dates for the extra year. If you wish to spread the payments over the new term, set up additional billing dates and adjust the amounts on existing billing dates as applicable.

Revenue Deferrals

In instances where deferral schedules are auto-scheduled using the Frequency drop-down, the new term's deferral schedule will reflect this frequency.

In instances where the originating agreement revision is set up with a deferral schedule, the system copies all unrecognized deferral entries for the agreement to the renewal and sets the deferral dates incrementally based on the new term. This applies also to any Periodic, Billed Separately services that are set up with deferral schedules. Recognized amounts will remain with the originating agreement revision or agreement service (respectively).

If a Periodic, Not Billed Separately service was removed via an amendment, its amount will be removed equally from billing schedule amounts and deferral schedule amounts. For Periodic, Not Billed Separately services that were added via an amendment, their amounts will be added equally to the billing schedule and revenue deferral schedule amounts.

Note: In all cases, the revenue deferral amounts must equal the billing schedule amounts for both the agreement and any Periodic, Billed Separately agreement services.

Change Customer with Single Site at Agreement

When renewing or changing an agreement, you can change the customer for one or more sites that are covered under that agreement. Once you opt to change the customer in SM Service Sites, agreements that are in quote or active state for that site appear in the SM Change Agreement Customer form. If you have more than one site on an agreement in SM Services Sites, the existing agreement is terminated and a new agreement created. For sites where the customer has not changed, the agreement is terminated and a new quote created for the same agreement. For more information, see Change the Customer for a Service Site.

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