Create a renewal quote on a contract

Contracts are the centralized source of truth for committed revenue in HubSpot. Create a renewal quote as a customer nears the end of their current contract to get commitment from your customer for the next term. When a renewal quote is accepted, a new contract is created and automatically associated with the previous contract.

To get started, learn more about:

• Configuring renewal management in contract settings. 

• How contracts are used.

• How to create contracts. 

• How to create renewal quote templates.

Managing the renewal process with contracts

Before creating a renewal quote, learn more about managing the renewal process, before the renewal date.

View existing contract information

Use the contract record to view existing contract information, including performance, associated line items, billing schedule, renewal information, timeline of activities, and history. Use this information to prepare renewal conversations before sending the renewal quote.

Create a dedicated renewal pipeline

It's recommended to create a dedicated renewal pipeline for renewal deals, and to create new deals for renewal quotes. This means you can report on new business revenue vs renewal revenue, and manage renewals separately from other active deals.

Use workflows to automate renewal deal and quote information

Use contract properties to create workflows that automatically create renewal deals and quotes: 

• Create renewal deals before the contract renewal date to manage communication with the customer about the renewal (e.g., emails, meetings, calls). 

• Create quotes before renewal dates to automatically use existing contract information in a quote to send to the customer. Learn more about creating renewal quotes from a workflow.

What's included on a renewal quote

By default, the renewal quote uses the same term as the existing contract (e.g., if the existing contract was a 12-month agreement, the renewal quote will be configured for 12 months). The renewal quote includes:

• Contacts associated with the existing contract.
• The company associated with the existing contract.
• Billing contacts, if they were added to the existing contract.
• Line items of the existing contract. If the contract was updated using a change quote, the renewal quote will also include those line items. For example, if a customer started with 10 licenses and later added 10 more through a change quote, the renewal quote will include 20 licenses for the full term of the quote.
• Matching payment terms of the existing contract.

Create a renewal quote

Create a renewal quote from an existing contract. Renewal quotes must be associated with a deal. You can create a deal during the renewal quote process or manually associate an existing deal.

To create a renewal quote:

1. In your HubSpot account, click More, then navigate to Revenue > Contracts. If More doesn't appear in your account, navigate to Revenue > Contracts directly.
2. Click the name of the contract.
3. In the upper right of the left sidebar, click Actions, then select Create renewal quote.
4. In the right panel:
   
   • If the Automatically create new deals for renewal quotes setting is turned on, click the Deal pipeline dropdown menu and select a pipeline. Then, click the Deal stage dropdown menu and select a deal stage.
   • If the Automatically create new deals for renewal quotes setting is turned off, click the Associate with a deal dropdown menu and select a deal, or click Create a new deal to create a new deal.
5. Click the Select a quote template dropdown menu and select a quote template. Learn more about setting up quote templates.
6. In the Change effective date field, click the date picker and select the date the change will take effect.
7. If the Allow users to override the default proration setting is turned on, clear the Prorate charges and credits for the remaining billing period to not prorate charges. If the checkbox is selected, charges will be prorated.
8. Click Create quote.
9. You’ll be directed to the quote editor. Seller and buyer details are automatically added from the contract.
10. Build the quote.
11. To edit the summary, including the Change effective date, click the Summary section in the quote editor. In the left sidebar editor, under Change effective date:
    • Click the Effective dropdown menu and select an option:
      • On agreement: the default setting. This is the date the quote moves to Accepted, either through e-signature, click-to-accept agreement, or by a HubSpot user marking the quote as signed.
      • Custom Date: a custom date. You can set a quote’s Effective date to a past date. When using a past date, the Expiration date will be treated as the buyer’s sign-by deadline. This means the buyer can still sign any time up to the expiration date, even if the Effective date is in the past. After selecting this option, click the date picker and select the date the renewal will take effect.
      • Delayed start (days): delays the billing start date by a number of days after checkout. After selecting this option, enter the number of days.
      • Delayed start (months): delays the billing start date by a number of months after checkout. After selecting this option, enter the number of months.
    • In the Label field, edit the label displayed above the effective date.
12. In the left sidebar editor, under Term length:
    • In the Label field, edit the label displayed above the term length.
    • Toggle the Term length switch off to hide it.

16. In the left sidebar editor, under Total discount:
    • Click the Format dropdown menu and select an option:
      • Show as amount: show the discount amount in the quote currency.
      • Show as percentage: show the discount as a percentage.
      • Show as percentage and amount: show the discount as a percentage and as an amount in the quote currency.
    • In the Label field, edit the label displayed above the total discount.
    • Toggle the Total discount switch off to hide it.
17. In the left sidebar, under Total contract value:
    • In the Label field, edit the label displayed above the total contract value.
    • Toggle the Total contract value switch off to hide it. Total contract value won’t be displayed if any of the line items have an indefinite billing term. Adjust the billing term of the line item to display the total contract value.
18. The updated total, including applicable tax, appears below the line items.
    
    
    
19. To share a renewal quote, click Share in the upper right.

Create a renewal quote using a workflow

You can create a renewal quote using a workflow action in a deal-based workflow. To create a renewal quote using a deal workflow:

1. In your HubSpot account, click More, then navigate to Automation > Workflows. If More doesn't appear in your account, navigate to Automation > Workflows directly.
2. Create a workflow, or click an existing workflow to edit it.
3. Set your enrollment triggers.
4. Click + below your trigger.
5. In the left panel, click to expand the CRM section.
6. Select Create renewal quote from contract.
7. Click the Contract dropdown menu and select a recommended option or Contracts: all associated.
8. Click the Template dropdown menu and select a quote template.
9. Click the Deal selection method dropdown menu and choose an option:
   • New deal using default pipeline/stage: creates a new deal in the default stage of the selected pipeline.
   • Existing deal: to select a different deal, after selecting this option, click the Deal dropdown menu and select a deal.
10. In the upper right, click Save.
11. Click Review and turn on in the top right to turn on the workflow.

What happens after a renewal quote is accepted

After a renewal quote is accepted by the customer:

• Customers complete payment using the quote payment process.
• The new contract is associated with the previous contract automatically. To view the contract:

• 1. In your HubSpot account, click More, then navigate to Revenue > Contracts. If More doesn't appear in your account, navigate to Revenue > Contracts directly.
  2. Locate and click the name of the new contract. Or, click the name of the existing contract. Then, in the right sidebar, navigate to the Contracts card to view the new contract. The renewal contract will also be displayed on the Activities and History tabs.

• From the renewal date, manage updates and amendments from the new contract.

Next steps

• Learn more about creating change and renewal quote templates.
• Learn more about viewing and managing contracts, including how to create change and renewal quotes, terminate contracts, associate contracts with other records, and export contracts.