Renewal and Contract Limits

When Contract Limits is Yes in SSM Accounting Control, the system provides two options for managing limits during contract renewal. The Renew Limits From field in SSM Accounting Control has two values.

• C indicates that limits should be copied from the old contract. The system changes the effective dates on the limits to reflect the start and end dates of the renewed contract. This is the correct choice if you have created limits that are unique to a particular contract or modified limits copied from the service type.

• S indicates that limits should be copied from the contract type, just as when a contract is created. This is useful for organizations that want to phase in changes by setting them up in the contract type using effective dates. During renewal, the system applies the limits that are effective for the new contract start date.

Renew Limits From in the control program defaults to Contract Maintenance, where you can modify the setting on a contract-by-contract basis. When one contract is copied or renewed, you can modify this value. When you renew in batch, the system checks the value for each contract and processes it according to the option selected.

Note: Whenever limits are copied or renewed, the system resets any amounts recorded against them to zero.

The Renew Limits From field affects all of the programs that copy limits.

• Contract Quote Release to Contract (11.5.1.5). Limits are copied exactly as defined in the quote, regardless of the setting of Renew Limits From. The quote is released as is, since this is the way the customer reviewed and accepted it.

• Contract Quote Copy from Quote (11.5.1.6) and Contract Quote Copy from Contract (11.5.1.7). You can modify the Renew Limits From setting before executing these functions. When quotes are being created, the start date defaults from the start date of the quote or contract being copied and the system does not verify overlapping coverage.

• Contract Copy to Contract (11.5.13.6) and Renew Single Contract (11.5.13.8). You can modify Renew Limits From before executing this function. The default start date of the new contract is after the end date of the original contract, and the system verifies that overlapping coverage is not created.

• Renewal Process/Report (11.5.13.10). You cannot modify Renew Limits From. The system reads it from each contract as defined in Contract Maintenance.

If you are using option C (contract) when copying limits, the system adjusts the effective dates of the source contract or quote to fit the date range of the new contract or quote. If you renew a contract for a 12-month duration for another 12 months, copying and adjusting the limits is very straightforward.

Example: Consider a 12-month contract effective from January 1, 2007 to December 31, 2007 with two limits:

When you renew this contract for the same date range in 2008, the system copies the limits and adjusts the year from 2007 to 2008.

Now renew the contract from 5/1/08 to 4/30/09. The system adjusts the year and calculates the monthly offset from the old contract start date (1/1/08), which is 4. The system adds the offset to the limits:

However, contracts do not have to start on the first of the month. What happens if the original contract is renewed from 5/15/008 to 5/15/09? The system calculates a month offset (4) and a day offset (14) and adds them to the original limit dates: