In contract management, users can also keep a note of all the software license agreements that the IT Team manages within the organization. This also helps the IT teams with better documentation and control the total IT costs for the software
To create a software license contract, select Software License as the contract type in the contract creation form.
Once this is selected, the following sections will be added to the Contract Creation form:
- Items & Cost Details
- Software License Properties
Items & Cost Details
The Items & Cost Details can be used to record the details of all the services that are covered under the Software License Agreement.
First up, search and select the Software that is covered under the agreement in the Software field. Please note that only Software created as Managed can be added to a contract.
Once the software is created, add details about the services in the contract.
There are three pricing models available for selection:
- Per Unit - Use this model if the licensing cost is per unit (eg. per user, per device). Count field cannot be Unlimited for Per Unit pricing model
- Fixed - Fixed costs are not dependent on the total count of the licenses. This is normally used when teams are paying a fixed fee to use a service. Count can be a number or marked as Unlimited
- One Time - One time pricing model is used to denote any service that does not recur. For example, implementation fee is a one time fee that does not recur in the case of subscription licenses. Fixed and Per Unit costs recur during every renewal.
Agents can add upto 10 line items to the software contract.
The first line item in the list cannot be removed. This line will be used to identify the number of user licenses covered in this license and to keep track of available licenses in the Software module.
You can also set the Billing cycle if this software license is a recurring cost like in the case of SaaS Subscription license costs. (Please note that the Billing cycle and the cost in the line items do not directly reflect the total cost of the contract at the moment.)
Software License Properties
This section lists all the custom fields that need to be added for Software license contracts. You can add custom fields by going to Admin -> Contract types and editing the Software License type.
Tenure of Contract
This section is used to capture the when the contract starts and expires or renews. If you'd like to set a contract to auto-renew, the expiry date is mandatory.
If Auto-Renew is enabled, the contract is renewed once it reaches the end date and the contract keeps auto-renewing until it is manually terminated. All of the contract properties are copied to the new contract when it auto-renews.
Once all these properties are updated, you can save the contract and the contract will be activated once it's approved (or will automatically be approved if no approvers are selected) once the start date is reached.
