Software contracts and licenses

Use the Software Contracts application to associate licenses with contract line items on software contracts.

To associate a license with a software contract line item, click Associate Licenses on the Contract Line Items tab in the Software Contracts application. You can associate a license with a software contract only if the status of the contract is approved (APPR).

Managing licenses for contract line items

By default, when you create a line item for a software contract, the Software Contracts application flags the item as not licensed and displays NOT LICENSED in the Utilization field. To associate a contract line item with a software license, you must manually associate it by clicking Associate Licenses on the Contract Line Items tab.

When you associate a license with a contract line item, the application performs a calculation to determine how much of the line item's license capacity is used. It compares the number of licenses that you have associated with the line item to the total capacity for the license and tells you whether you are below capacity, at capacity, or above capacity. The application displays this information in the Utilization field.

Managing licenses for software contracts

By default, when you create a software contract, the application displays NOT LICENSED in the Utilization field in the header section of all tabs, indicating that no line items in the contract are associated with a software license. Each time you save a software contract, the application evaluates the contract line items to determine the level of licensing for the contract and updates the Utilization field using the rules described in Table 1.

Table 1. Determining license levels
If... Utilization for the software contract is...
all contract lines are set to Not Licensed Not Licensed

at least 1 contract line is set to Below Capacity

and

all the rest are either Below Capacity, At Capacity, or Not Licensed

Below Capacity
all contract lines are set to At Capacity At Capacity

at least 1 contract line is set to Above Capacity

and

all the rest are either Below Capacity, At Capacity, or Not Licensed
Above Capacity

Software contracts and license updates

Software license information in the Software Contracts application can be modified based on user actions in the Licenses application. If a software license is deleted in the Licenses application, the association between the license and the software contract is deleted. The values in the Utilization field for the contract line item and the Licensed field for the software contract are also modified to reflect the change.



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