Download - Contract Management Training Course
![Page 1: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/1.jpg)
Contract Management
Larry Johnson IT Service Management
January 2018
![Page 2: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/2.jpg)
Course Agenda
2
Lesson 3: Creating a New Contracts
Lesson 1: Contract Management Introduction
Lesson 4: Cancelling Contracts
Lesson 2: Managing an Existing Contracts
Lesson 6: Wrap-Up
Lesson 5: Terms and Conditions (Optional)
![Page 3: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/3.jpg)
Lesson 1:Contract Management Introduction
After this lesson, you will be able to understand: • Contract Management – Defined• Contract Management – Process • Contract Management – Application
![Page 4: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/4.jpg)
Contract Management - Defined§ Contract Management is the process of managing contract creation, execution and
analysis to maximize operational and financial performance at an organization, all while reducing financial risk.*
§ The ServiceNow Contract Management Application provides management and tracking of contracts through their lifecycle and contains information such as:• Contract number• Contract start and end dates• Active status• Terms and conditions statements• Documents• Renewal information• Financial terms
§ Contract Management integrates with Cost Management to associate contracts with costs and determine the total cost of ownership.
§ * Best Practices in Contract Management – Strategies for Optimizing Business Relationships (2004), Aberdeen Group
![Page 5: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/5.jpg)
Contract Management - Process The Contract Management application is a centralized repository to create and manage contract data.
ITAM Activities
Contract Management ProceduresCreate Contract Contract Notifications Contract Notifications Cancel ContractApprove Contract Renew / Extend
Contract
Asset Management
Product Catalog
Inventory Management
Procurement Software Asset Management
Service Request
Procurement
Software Asset Management
Contract Management
Asset Management
Contract Management
Contract Management
Contract Management
Asset Management
Software Asset Management
Service Request
ModelManagement
Receipt DeploymentRetire /Dispose
Procurement Management / Tracking
![Page 6: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/6.jpg)
Contract Management - Application The Contract Management Application is a centralized repository for contract data. It can be used to navigate to various forms, records, and key data.
Key Contract Modules*
Description
Overview A type of homepage that include gauges and charts to manage contracts.
Software Maintenance
View all software maintenance contracts or create a contract for a software maintenance model.
Hardware Maintenance
View all hardware maintenance contracts or create a contract for a hardware maintenance model.
Subscriptions View all subscription contracts or create a contract for a subscriptionmodel.
Services View all service contracts or create a contract for a services contract model.
All View all contracts or create any type of contract.
*Administration section visible only to ServiceNow administrators
![Page 7: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/7.jpg)
Contract Lifecycle
From creation until closure, contracts follow a lifecycle that determines which fields can be edited.
§ When a contract is in Draft state, almost all fields on the contract record can be edited.
§ After a contract moves past the Draft state, certain date, renewal, extension, and financial fields become read-only.
§ Only users listed in the contract administrator, approving manger, approving director, financial analyst, finance director and watch list fields will have access to view the contract.
State Description
Draft User adds information about the contract and specifies an approver.
Active Contract was approved and has reached the specified Start date.
Expired Contract reached the specified End date.
Cancelled Contract was discontinued and is no longer active.
Under Review Contract is under review by the Contract Administrator
![Page 8: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/8.jpg)
Lesson 2:Managing an Existing Contract
After this lesson, you will be able to: • View and update a contract• Understand the contract email notifications• Renew a contract• Extend a contract
![Page 9: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/9.jpg)
Contract DashboardFor existing contracts, you can view information about your contract status in the Contract Management Overview module. It displays various contract management reports.
![Page 10: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/10.jpg)
Extend ContractFor existing contracts, you can extend the end date, if necessary. Extending the end date retains contract information and history.
![Page 11: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/11.jpg)
Contract Reporting
Users will have access to Contract report.
![Page 12: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/12.jpg)
Contract Notifications
The Contract application has several email notifications that assist users with managing and checking the status of contracts during their life cycle.
NOTE: If the contract has a dollar amount greater then $250,000 or more, notifications will being 120 days from the contract end date.
![Page 13: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/13.jpg)
Add Documents to a Contract• Contracts can be associated with documents. Linking a contract with related
documents helps keep all relevant information about a contract together and easily accessible.
• Attach a document to a contract by clicking the Paper Clip icon in the upper right hand corner.
• Once the document is attached, it is displayed in the upper left hand corner of the contract record.
![Page 14: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/14.jpg)
Add Assets to a Contract
Contracts can be associated with specific assets, including software licenses. Linking a contract with assets clarifies what the contract legally covers.
![Page 15: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/15.jpg)
Add Configuration Items to a Contract
Contracts can be associated with specific configuration items or CIs. Linking a contract with CIs clarifies what the contract legally covers.
![Page 16: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/16.jpg)
Add Users to a Contract
A contract can cover specific users. For example, you may use a contract to hire a group of temporary workers.
![Page 17: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/17.jpg)
Lesson 3:Creating a Contract
After this lesson, you will be able to: • Understand the lifecycle of a contract• Create a new contract• Enforcing A Contract
![Page 18: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/18.jpg)
Create a Contract
Create a variety of contract models for Software Maintenance, Hardware Maintenance, Subscriptions, and Services.
![Page 19: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/19.jpg)
Create a Contract Example – Software Maintenance
One example of Contract Management is managing software licenses.For Software Maintenance contracts, a License type field is available.
License type:Enterprise – Enterprise licenses are typically for large customers and provide some flexibility, an agreed upon discount price, and a mechanism for easy administration.
SaaS – Software-as-a-Service solutions are becoming more prevalent and cost effective for many organizations. Tracking the contracts associated with these solutions is key for software asset management.
Subscription - You can create subscription licenses, and manage the information as it changes.
![Page 20: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/20.jpg)
Enforcing A Contract
§ The contract can be submitted for review using the button on the form.
![Page 21: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/21.jpg)
Lesson 4:Cancel a Contract
After this lesson, you will be able to: • Cancel a Contract
![Page 22: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/22.jpg)
Cancel a Contract
A contract can be cancelled when it is in the Active State.
![Page 23: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/23.jpg)
Lesson 5:Terms and Conditions (Optional)
After this lesson, you will be able to: • Terms and Conditions
![Page 24: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/24.jpg)
Terms and Conditions
§ Adding terms and conditions to a contract helps keep all documentation relevant to a contract in one location: the contract record.
There are three procedures to add Terms and Conditions to a Contract.First, create a Terms and Conditions record.
Then, build a Terms and Conditions document within the contract.
Second, add the Terms and Conditions record to a contract.
![Page 25: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/25.jpg)
Create a Terms and Conditions Record
The first procedure in adding terms and conditions to a contract is to create a terms and conditions record.
![Page 26: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/26.jpg)
Add Terms and Conditions Record to Contract
After creating a terms and conditions record, it needs to be added to a contract.
![Page 27: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/27.jpg)
Build Terms and Conditions within a Contract
After adding one or more terms and conditions records to a contract, build a terms and conditions document within the contract. The terms and conditions records are added in the sequence specified in the Order field.
![Page 28: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/28.jpg)
Lesson 6:Wrap-Up
After this lesson, you will be able to: • Terms and Conditions
![Page 29: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/29.jpg)
Summary
Contract Management IntroContract Management is the process responsible for monitoring contracts and associated IT assets, defining warranty, terms and conditions, assisting in vendor / manufacturer selection, and producing vendor performance feedback.
The ServiceNow Contract Management Application provides management and tracking of contracts through their lifecycle and contains information such as:
• Contract number• Contract start and end
dates• Active status• Terms and conditions
statements• Documents• Renewal information• Financial terms
Create a Contract
A contract is a binding agreement between two parties.
In ServiceNow, you can create a variety of contract models
The contract record goes through a lifecycle which include the following States:
• Draft• Active• Expired• Cancelled• Under Review
Manage a Contract
Once a contract has been created and approved, it can be updated by adding documents, users, assets, adding configuration items and contract term and conditions.
Contracts dates can also be adjusted.
Contracts can be renewed and extended as well.
Cancel a ContractA contract can be cancelled when it is in the Active state. After a contract is cancelled, the contract state changes to Cancelled, but it can be reactive if it was cancelled in error.
![Page 30: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/30.jpg)
Test Your Knowledge!
1. The ServiceNow Contract Management Application provides management and tracking of contracts through their lifecycle with which items on the ServiceNow Record?
2. What are the four procedures within the contract management process?
3. What determines what fields can be edited on a contract record?
4. Can a Contract be reactive if cancelled in error?
![Page 31: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/31.jpg)
Congratulations!
![Page 32: Contract Management Training Course](https://reader030.vdocuments.net/reader030/viewer/2022020917/61bd18d361276e740b0f5159/html5/thumbnails/32.jpg)