Service Contract Only Allow Annual (1 year) contract period

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Posted on by Samantha73

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Hi Everyone

I have a question regarding BC Service Contracts. There is no way to create a contract with less than a year (or more a year). Is this by design? Why do others deal with 6 month contract?

https://learn.microsoft.com/en-au/dynamics365/business-central/service-how-to-create-service-contracts-and-service-contract-quotes

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Khushbu Rajvi. 22,435 Super User 2026 Season 1 on at

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In Business Central, service contracts typically default to a minimum duration of one year by design. If you need shorter contracts (like 6 months), check your service management settings or consider customization to allow for more flexibility.

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Yi Yong 2,721 Super User 2026 Season 1 on at

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Hello Samantha,

The Service contract period is based on the 'Starting Date' and 'Expiration Date' fields.

You can control them for a flexible contract period.

# Scenario
6 months contract at $600 billable to the customer.

NOTE: This is not written clearly on the tooltip but the 'Line Amount' is the yearly billable amount regardless of the Starting Date and Expiration Date.

The contract period is 6 months, from Jan to Jun. So the invoice will be just 600 instead of 1,200!
You must adjust the 'Line Amount' to the yearly amount even if the contract is less than 1 year.

The below invoice is created from the 'Create Service Invoice' function.

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