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 Renewal

Use

You can renew fixed-term contracts by assigning renewal rules to them.

Prerequisites

  • The contract you want to renew is active.

  • You created renewal rules in Customizing:

    Start of the navigation path SAP Customizing Implementation Guide Next navigation step Flexible Real Estate Management (Enterprise Extension) Next navigation step Contract Next navigation step Renewal Next navigation step Renewal Rules End of the navigation path

Features

There are two types of rules that you can use to renew a contract with a fixed term:

  • Renewal option

    Multiple single and recurring options can be defined in the contract. The contractual partner can then renew the contract while keeping the original conditions. Options do not take effect automatically. The contractual partner has to declare his or her approval of the option in order for it to take effect.

  • Automatic renewal

    Defines how the contract term is renewed at the end of the contract. A renewal takes effect automatically . For the renewal not to take effect, it has to be rejected by the authorized party. The rejection is expressed by giving notice.

    You create automatic renewals in Customizing. You can also define individual automatic renewals when processing the contract. Choose the Term tab page (refer to: Renew Contract ).

Renewal options and automatic renewals can be applied separately or in combination with each other. However, renewal options always take precedence over an automatic renewal.

Activities

  1. Determine the renewal rule you want. For more information, refer to Renewal Rule .

  2. Assign this renewal rule in the contract, and activate the renewal in the contract (refer to Renew Contract ).