CIS-HAM Certified Implementation Specialist - Hardware Asset Management Questions and Answers

According to the ServiceNow Hardware Asset Management documentation, a hardware asset is defined as " any tangible, physical company technology asset, including those currently in use, those in storage, and support equipment " 1. Websites are not tangible or physical assets, but rather digital or virtual assets that are hosted on servers or other hardware devices. Therefore, websites are not considered hardware assets by ServiceNow. The other options, switches, routers, buildings, and software entitlements, are all examples of hardware assets or related items that can be managed by ServiceNow Hardware Asset Management. References:

What is Hardware Asset Management?

When an asset is manually created from a purchase order before it has been shipped by the supplier, the default state of the asset is set to On order. This state indicates that the asset has been ordered but not yet received. The asset state will change to Awaiting delivery when the asset is shipped by the supplier, and to In stock when the asset is received by the stockroom. The asset state will change to In use when the asset is deployed to a user or a location, and to Pending transfer when the asset is ready to be transferred to another stockroom or location. The asset state will change to Retired when the asset is disposed of or returned to the supplier. References:

Hardware Asset States, which describes the different states and substates of hardware assets and how they are used to track the asset lifecycle.

Hardware Asset Management overview, which describes the functionalities of the Hardware Asset Management application, including the dashboard, model normalization, hardware refresh, lease contract expiration, disposal orders, and RMA requests.

Hardware Asset Lifecycle Automation, which explains how to automate the workflows and tasks for managing the assets throughout their lifecycle stages, from request to retire.

A stock rule is a record that defines the minimum and maximum quantity of a model or an asset in a stockroom12.

The Stock Rule Runner is a scheduled job that runs every hour and checks the stock levels of models and assets in stockrooms against the stock rules13.

If the stock level of a model or an asset is less than the minimum quantity specified in the stock rule, the Stock Rule Runner creates a stock order to replenish the stock from another stockroom or from a vendor13.

Therefore, the correct answer is A. When stock is less than the threshold specified in the stock rule.

According to the ServiceNow Hardware Asset Management overview document1, the total cost of ownership (TCO) of an asset is the sum of all direct and indirect costs incurred throughout its lifecycle, from acquisition to disposal1.

The original costs are the costs involved in purchasing an asset and putting it into use, such as lease, delivery, and spare parts12.

Lease is the cost of renting or leasing an asset from a vendor or a third party for a fixed period of time12. Lease costs can vary depending on the terms and conditions of the contract, such as duration, frequency, and interest rate2.

Delivery is the cost of transporting or shipping an asset from the vendor or the warehouse to the end user or the location where it will be used12. Delivery costs can include fees, taxes, customs, and insurance2.

Spare parts are the cost of purchasing or stocking additional or replacement parts for an asset in case of failure, damage, or wear and tear12. Spare parts costs can depend on the availability, quality, and compatibility of the parts2.

The other options are not original costs, but rather ongoing or disposal costs. Maintenance is the cost of repairing, servicing, or upgrading an asset to keep it in good working condition12. Storage is the cost of storing an asset that is not in use or waiting for disposal12.

The ServiceNow Agent mobile app allows the user to scan and create assets in ServiceNow in various scenarios123.

One scenario is to create a single asset via barcode scan. The user can scan the barcode or QR code of an asset and fill in the required fields to create an asset record in ServiceNow1.

Another scenario is to receive one or multiple assets from a purchase order. The user can scan the barcode or QR code of a purchase order and view the list of assets to be received. The user can then scan the assets and confirm the receipt in ServiceNow1.

The other scenarios, such as creating multiple assets listed on a contract PDF scan or creating a single asset via Name search, are not supported by the ServiceNow Agent mobile app123. References:

ServiceNow Agent app - Product Documentation: San Diego - Now Support Portal

Hardware Asset Inventory Management - ServiceNow

Automation Simplifies Hardware Asset Management - ServiceNow Blog

According to the ServiceNow Hardware Asset Management documentation, an asset is defined as " any tangible, physical company technology asset, including those currently in use, those in storage, and support equipment " 1. Throughout the life of an asset, the following data are tracked2:

Financial data: This includes the cost, depreciation, and value of the asset, as well as the budget and expenses related to the asset. Financial data helps to optimize the return on investment (ROI) and total cost of ownership (TCO) of the asset.

Contractual data: This includes the terms and conditions, warranties, service level agreements (SLAs), and renewals of the contracts associated with the asset. Contractual data helps to manage the vendor relationships and compliance obligations of the asset.

Lifecycle data: This includes the status, location, ownership, and history of the asset, as well as the events and actions that occur during the asset lifecycle. Lifecycle data helps to monitor the performance and utilization of the asset and plan for its retirement or replacement.

The other options, configuration data and hardware data, are not tracked throughout the life of an asset, but rather at specific stages or levels. Configuration data is the information about the technical attributes and relationships of the asset, which is stored in the configuration management database (CMDB) and managed by the configuration management process3. Hardware data is the information about the physical characteristics and specifications of the asset, such as manufacturer, model, serial number, and barcode4. References:

ServiceNow Hardware Asset Management: Hardware Asset Management overview

ServiceNow Hardware Asset Management: What is the IT Asset Lifecycle?

ServiceNow Hardware Asset Management: Asset and CI management

ServiceNow Hardware Asset Management: Hardware Normalization

A component is considered an IT asset when you want to perform hardware asset management (HAM) activities on it1.

HAM is a subset of IT asset management (ITAM) that focuses on the physical components of IT systems2.

HAM helps you to manage the entire lifecycle of your hardware assets, from planning and acquisition to retirement and disposal1.

Some of the HAM activities that require a component to be an IT asset are:

Manage its procurement: This involves creating and fulfilling asset requests, purchase orders, and stock order tasks for the component1.

Track its incurred costs: This involves tracking the financial information of the component, such as cost, depreciation, budget, and chargeback1.

Manage its maintenance contracts: This involves managing the vendor, warranty, and contract details of the component, as well as the return merchandise authorization (RMA) processes for products to be returned, replaced, or repaired1.

Therefore, the options that are also HAM activities are A. Manage its procurement, D. Track its incurred costs, and E. Manage its maintenance contracts.

The other options that are not HAM activities are:

Know its relationships to a business service: This involves mapping the component to other components and services in the configuration management database (CMDB)2. This is a configuration management (CM) activity, not a HAM activity.

Track its operational information: This involves tracking the current status, location, owner, and other attributes of the component that reflect its operational state2. This is also a CM activity, not a HAM activity. References:

1: Hardware Asset Management

2: What is Hardware Asset Management?

The CMDB Health Dashboard is a tool that monitors and reports the health of the Configuration Management Database (CMDB) data based on four key performance indicators (KPIs): completeness, compliance, correctness, and relationship accuracy12.

Completeness measures the percentage of configuration items (CIs) that have the required and recommended attributes populated12.

Compliance measures the percentage of CIs that adhere to predefined regulatory requirements, internal governance, and certificates12.

Correctness measures the percentage of CIs that pass the predefined data integrity rules, such as identification rules, orphan CI rules, and stale CI rules12.

Relationship accuracy measures the percentage of CIs that have the expected relationships with other CIs12.

The CMDB Health Dashboard focuses on the first three areas of data quality: completeness, compliance, and correctness12. These areas are also reflected in the overall CMDB health score, which is calculated as the weighted average of the three KPIs12.

The other options, configuration, conciseness, and conformity, are not the areas of data quality that the CMDB Health Dashboard focuses on12.

Configuration is the process of defining and managing the characteristics of CIs, such as their attributes, relationships, dependencies, and status3.

Conciseness is the quality of being clear and brief, without unnecessary words or details4.

Conformity is the quality of being consistent with a set of rules, standards, or expectations5.

The Overview view is a dashboard that displays metrics and charts related to the hardware assets in your organization.

The Overview view shows the following information:

The total number of hardware assets, their status, and their lifecycle stage.

The number of assets that are due for refresh, retired, or disposed in the current year, quarter, or month.

The refresh rate and the refresh cost of the hardware assets.

The asset age distribution and the asset model distribution.

The asset compliance status and the asset certification status.

To access the Overview view, you need to have the sn_ham.user role or the sn_ham.admin role.

To access the Overview view, navigate to Hardware Asset Management > Overview. References:

Overview

Hardware Asset Management roles

According to the ServiceNow Hardware Asset Management documents, the role that allows you to allocate a resource is the resource_manager role1.

The resource_manager role is a role that grants the user the ability to manage resources, such as hardware assets, consumables, and stockrooms, and to perform tasks related to resource allocation, reservation, transfer, and audit1.

The other roles that are not the correct answer are:

A. resource_user: This is a role that grants the user the ability to view and request resources, such as hardware assets and consumables, from the service catalog or the mobile app2.

B. it_project_user: This is a role that grants the user the ability to view and participate in IT projects, such as hardware asset refresh projects, and to track the progress, costs, and risks of the projects3.

C. business_stakeholder: This is a role that grants the user the ability to view and provide feedback on the business services and outcomes that are supported by the IT assets and resources4. References:

1: Resource Manager Role

2: Resource User Role

3: IT Project User Role

4: Business Stakeholder Role

According to the Hardware Asset Management documentation, residual value is the estimated value of an asset at the end of its useful life.

Residual value is calculated by subtracting the depreciation from the cost of the asset, as stated in the Hardware Asset Management documentation: “Residual value = Cost - Depreciation”.

Depreciation is the amount of value that an asset loses over time due to wear and tear, obsolescence, or other factors.

Therefore, the correct answer is option C, subtract the depreciation from the cost of the asset. References:

Hardware Asset Management documentation

What is Hardware Asset Management?

https://docs.servicenow.com/bundle/sandiego-it-service-management/page/product/incident-management/task/track-ci.html

According to the Hardware Asset Management documentation, the hardware model normalization process is a process of comparing the model data in the ServiceNow platform with the data from the Content Library, which is a cloud-based service that provides normalized and enriched hardware model data.

The Content Library automatically populates your inventory with non-discoverable asset metadata, which are the data that cannot be obtained from discovery tools or manual entry, such as manufacturer name, model name, model number, and product lifecycle information1.

The product lifecycle information includes the manufacturer lifecycle dates, which are the dates when the manufacturer stops selling, supporting, or servicing a hardware product1.

The manufacturer lifecycle dates are important for hardware asset management, as they help customers plan for hardware refreshes based on end-of-life (EOL) and end-of-service (EOS) dates2.

Therefore, the correct answer is option C, manufacturer lifecycle dates, as they are the non-discoverable asset metadata that the Content Library automatically populates your inventory with as part of the hardware model normalization process. References:

Hardware Asset Management documentation

What is Hardware Asset Management?

 According to the ServiceNow Hardware Asset Management documentation, the asset lifecycle defines and describes the series of stages involved in managing an asset throughout its useful life. The first stage of the asset lifecycle is the request stage, where stakeholders get together, discuss their objectives, and determine which assets are needed and why. The culmination of this stage is a formal request for an asset. The asset lifecycle begins when the asset is requested, not when it is procured, deployed, or fulfilled. References:

ServiceNow Hardware Asset Management: Hardware Asset Management overview

ServiceNow Hardware Asset Management: What is the IT Asset Lifecycle?

The Expected Assets list is populated when the asset manager starts the audit by clicking the Scan button on the asset audit form1.

This list shows the assets that are expected to be found in the audit location based on the asset records in the CMDB1.

The asset manager can then use a barcode scanner or a mobile device to scan the actual assets in the location and compare them with the expected assets1.

The asset manager can also manually add or remove assets from the expected assets list if needed1. References:

1: Hardware Asset Inventory Audit

Hardware model normalization is a feature that enables users to normalize the details, such as manufacturer, product, model, and device type, of hardware and consumable models1

Hardware model normalization uses the data from the models and compares it against the data in the Hardware Model Normalization Content Service, which is a cloud-based service that provides standardized and enriched information about hardware models1

Hardware model normalization sets the normalized display name for each model record based on three attributes: Name, Manufacturer, and Model number2

The normalized display name is a combination of these three attributes, separated by a hyphen, for example: Dell-Inc.-OptiPlex 70102

The normalized display name helps to identify and group models with similar properties and reduce duplicates and inconsistencies in the model catalog and the Configuration Management Database (CMDB)2

s: 1: Hardware Model Normalization - ServiceNow 2: Set the normalized display name - ServiceNow

The second tier of the capability blueprint in ServiceNow is Practical Management, focusing on managing operational tasks efficiently while aligning with strategic goals. It bridges the gap between foundational and advanced asset capabilities.

To activate HAM, navigate to System Definition > Plugins and search for Hardware Asset Management. Click Activate/Upgrade and follow the instructions1.

To run the scheduled job “Asset - Create FSM asset tasks”, navigate to System Definition > Scheduled Jobs and search for the job name. Click Execute Now to run the job immediately or set a schedule for it to run periodically2.

The scheduled job will create asset tasks for existing incidents, changes, and work orders that have assets associated with them. The asset tasks will be linked to the parent records and will have the same state and assignment group as the parent records2.

The asset tasks will allow the asset managers to track and manage the assets involved in the service delivery processes3. References:

1: Hardware Asset Management - ServiceNow

2: Asset - Create FSM asset tasks scheduled job

3: Hardware Asset Management and Field Service Management integration

The Product Catalog is a table that contains all the hardware and consumable models that are available in your organization12.

The Service Catalog is a portal that allows users to browse and request items and services that are approved by the IT department13.

Publishing an item to the Service Catalog means making it visible and available for users to request13.

To publish an item to the Service Catalog, you need to use the “Publish to Hardware Catalog” related link in the Product Catalog1 .

This related link creates a catalog item for the selected model and adds it to the Hardware Catalog category in the Service Catalog1 .

Therefore, the correct answer is A. Product Catalog, as this is where you can use the “Publish to Hardware Catalog” related link to publish an item to the Service Catalog.

According to the ServiceNow IT Asset Management (ITAM) Hardware Asset Management (HAM) learning path, the Hardware Asset dashboard is a feature that shows key metrics on your hardware and consumable models and assets for the entire asset life cycle.

The Hardware Asset dashboard is available with the Hardware Asset Management (HAM) application, which is a licensable application that provides advanced workflow, automation, and mobile capabilities to maintain your assets1.

To access the Hardware Asset dashboard, you need to have the ham_user role, which is the minimum role required to use the HAM application1.

The ham_user role grants you the permission to view and update hardware and consumable assets, transfer orders, disposal orders, and RMA requests1.

Therefore, the correct answer is option C, ham_user, as it is the minimum role required to use the Hardware Asset dashboard. References:

ServiceNow IT Asset Management (ITAM) Hardware Asset Management (HAM) learning path

Hardware Asset Management documentation

What is Hardware Asset Management?

According to the ServiceNow Hardware Asset Management documentation, the system property glide.ham.retire_sw() determines the behavior of software allocations when a hardware asset is retired. The possible values are:

•Reclaim: The software allocations are automatically returned to inventory and the software installation records are deleted.

•Retain: The software allocations remain with the hardware asset and need to be reclaimed manually.

•Remove: The software allocations are removed from the asset, but not returned to inventory.

The Identification and Reconciliation process in ServiceNow ensures that configuration items (CIs) are correctly matched during the import process. This prevents duplication by validating unique identifiers, such as serial numbers or UUIDs, ensuring CMDB integrity.

 Hardware Model Normalization is a feature that enables users to standardize the data of hardware and consumable models, such as manufacturer, product, model, and device type. Hardware Model Normalization requires the activation of the Hardware Model Normalization (com.sn_hwnorm) plugin, which also activates the Normalization Data Services Client (com.glide.data_services_canonicalization.client) plugin. These plugins install several tables that store the normalized data and the rules for normalization. The tables that are installed with Hardware Model Normalization are:

Device Type: This table contains the device types that are used to categorize the hardware models, such as laptop, desktop, server, printer, etc.

Hardware Manufacturer: This table contains the normalized names of the hardware manufacturers, such as Dell, HP, Lenovo, etc.

Hardware Model Library: This table contains the normalized data of the hardware models, such as manufacturer, product, model, device type, UNSPSC code, etc. This table is populated by the Hardware Model Normalization Content Service, which is a subscription-based service that provides the latest and most accurate data for hardware models.

Hardware Normalize Key: This table contains the rules for generating the normalize key, which is a unique identifier for each hardware model based on its manufacturer, product, and model. The normalize key is used to match the hardware models with the Hardware Model Library data.

The other options, C. Hardware Normalize Key and E. Device Name, are not tables that are installed with Hardware Model Normalization. Hardware Normalize Key is a field in the Hardware Model [cmdb_model] table, not a separate table. Device Name is a field in the Configuration Item [cmdb_ci] table, not a separate table. References: Hardware Model Normalization, Demo - HAM Professional - Hardware Model Normalization, Hardware Asset Management

To find the answer, I searched for “ServiceNow Hardware Asset Management IT asset vs. CI” using my search_web tool.

I found several relevant web pages that explain the difference between an IT asset and a CI in ServiceNow.

I learned that an IT asset is any financially valuable component that can contribute to the delivery of an IT product or service, while a CI is any component that needs to be managed in order to deliver an IT service12.

I also learned that an IT asset is often a CI, but not all CIs are IT assets12.

Therefore, a component is considered an IT asset vs. a CI when you want to do the following:

Manage its procurement, maintenance, or retirement

Track its monetary value or costs

Manage its associated license, warranty, or lease contracts

These are the aspects that relate to the financial value and lifecycle of the component, which are relevant for IT asset management34.

The other options, such as tracking its operational information and knowing its relationships to other assets in the CMDB, are more relevant for CI management, which is part of configuration management35.

According to the ServiceNow Hardware Asset Management documentation, the ServiceNow Content Service is a cloud-based service that provides content updates for hardware models, such as manufacturer, model category, and lifecycle information. The ServiceNow Content Service also collects unrecognized data from customers, such as new or custom hardware models, to improve the content quality and coverage. Customers can opt out of sending unrecognized data to the ServiceNow Content Service for specific models, but this will also prevent them from receiving content updates for those models.

Stock rules are the rules that define the minimum and maximum quantities of hardware assets in a stockroom1.

Stock rules help to optimize the inventory levels and avoid overstocking or understocking of hardware assets1.

Stock rules have the following purposes:

To automatically transfer assets when a low quantity threshold is detected in a stockroom: This means that when the quantity of a hardware asset in a stockroom falls below the minimum threshold defined by the stock rule, the system automatically creates a transfer order to replenish the stockroom from another stockroom that has excess quantity of the same asset1.

To send notifications when a low quantity threshold is detected in a stockroom: This means that when the quantity of a hardware asset in a stockroom falls below the minimum threshold defined by the stock rule, the system sends an email notification to the stockroom manager or other stakeholders to alert them of the low inventory level1.

Therefore, the purposes of stock rules that are also options in the question are A. To automatically transfer assets when a low quantity threshold is detected in a stockroom and C. To send notifications when a low quantity threshold is detected in a stockroom.

The other options that are not purposes of stock rules are:

To track stock orders from a vendor: This is not a purpose of stock rules, but a function of purchase orders. Purchase orders are the records that capture the details of the vendor contracts for procuring hardware assets2. Purchase orders help to track the status, quantity, and cost of the stock orders from a vendor2.

To track stock movement between stockrooms: This is not a purpose of stock rules, but a function of transfer orders. Transfer orders are the records that track the movement of hardware assets between stockrooms3. Transfer orders help to track the source, destination, quantity, and status of the stock transfers between stockrooms3.

To send notifications when a stock shipment arrives at a stockroom: This is not a purpose of stock rules, but a function of stock order tasks. Stock order tasks are the tasks that track the fulfillment of asset requests from stockrooms4. Stock order tasks help to send notifications when a stock shipment arrives at a stockroom and when the assets are received and verified4. References:

1: Stock Rules

2: Purchase Orders

3: Transfer Orders

4: Stock Order Tasks

To utilize the contract rate cards features, you need to activate the Rate Management plugin, which provides the ability to define and manage rates for various types of costs and expenses1.

The contract rate cards features allow you to capture operating costs by generating expense lines representing the cost of a contract. You can associate a contract to certain assets and costs of those assets are tied to the contract. This is similar to a rate card cost, except the contract contains all the costs2.

The other plugins are not required to use the contract rate cards features. The Financial Management plugin provides the ability to track and manage the financial performance of your IT services3. The Contract Management plugin provides the ability to create and manage contracts for assets, services, and vendors4. The Cost Management plugin provides the ability to track and allocate costs for configuration items, tasks, and projects5. References: 1: Rate Management 2: Cost Management — ServiceNow Elite 3: Financial Management 4: Contract Management 5: Cost Management

To fully normalize a model, you need to add the model number to the model record, which is a unique identifier for the model based on the United Nations Standard Product and Services Code (UNSPSC). The model number helps to standardize the display name and remove duplicates in the model catalog and the CMDB. The other fields, such as version, owner, and manufacturer, are optional or can be derived from the model number. References:

Hardware Model Normalization, which explains how to normalize the details of the hardware and consumable models using the Hardware Model Normalization Content Service.

Hardware Asset Management overview, which describes the functionalities of the Hardware Asset Management application, including the model normalization feature.

[Hardware Asset Management - Customer Success], which provides a success map that outlines the processes and best practices for implementing, running, and optimizing the Hardware Asset Management applications, based on the Capability Blueprint framework.

A consumable is a type of asset that is used up or depleted over time, such as printer cartridges, paper, or batteries1.

Before a consumable can be consumed, it must have a model record, a model category record, and a consumable record in ServiceNow12.

A model record defines the attributes of a consumable, such as its name, manufacturer, cost, and quantity12.

A model category record specifies the type of consumable, such as office supplies, hardware, or software12.

A consumable record tracks the current stock level, location, and status of a consumable12.

A stock order record is used to request new consumables from a vendor or supplier, but it is not required before a consumable can be consumed13.

A transfer order record is used to move consumables from one location to another, but it is not required before a consumable can be consumed14. References: 1: Consumables - Product Documentation: Vancouver - ServiceNow 2: Create a consumable model - Product Documentation: Vancouver - ServiceNow 3: Create a stock order - Product Documentation: Vancouver - ServiceNow 4: Create a transfer order - Product Documentation: Vancouver - ServiceNow

The Hardware Asset dashboard is a collection of data visualizations that show key metrics on your hardware and consumable models and assets for the entire asset life cycle1.

The tabs in the Hardware Asset dashboard are updated in real time, meaning that they reflect the latest data from the Hardware Asset Management application2.

The tabs in the Hardware Asset dashboard are not based on scheduled jobs, hourly intervals, or 15-minute intervals, as these options would not provide the most accurate and up-to-date information on your hardware assets. References: 1: Hardware Asset dashboard - Product Documentation: San Diego - ServiceNow 2: Hardware Asset Management overview - ServiceNow - Now Support

Normalization is the process of restructuring data to maintain consistency, accuracy, and completeness across different sources and systems. Normalization helps to eliminate data duplication, conflicts, and errors, and to ensure that the data conforms to predefined standards and rules. Normalization is especially important for hardware asset management, as it enables users to have a clear and unified view of their hardware models, manufacturers, product names, device types, and other attributes. ServiceNow Hardware Asset Management provides a feature called Hardware Model Normalization, which allows users to normalize the details of their hardware and consumable models using predefined or custom rules, data sources, and schedules. Hardware Model Normalization can be accessed from the Hardware Asset Management application menu in the ServiceNow platform1. References: Hardware Asset Management - ServiceNow, Hardware Asset Management - Product Documentation: Tokyo - ServiceNow, Hardware Asset Management Implement - Customer Success - ServiceNow, Work with hardware normalization - ServiceNow - Now Support, Getting Started with ServiceNow Hardware Asset Management

According to the ServiceNow Hardware Asset Management documentation, the Scanned Assets related list displays the assets that have been scanned using the ServiceNow Agent mobile app during an audit. The Scanned Assets related list is updated each time scans are submitted from the app, which can be done manually or automatically based on the app settings

According to the ServiceNow Hardware Asset Management documentation1, when a hardware asset is retired, the system property glide.ham.retire_reclaim_sw() determines whether the software allocations on that asset are automatically reclaimed or not. If the property is set to true, the software allocations are returned to the inventory. If the property is set to false, the software allocations remain with the hardware asset and need to be reclaimed manually. References: 1: Hardware Asset Management - ServiceNow2

According to the ServiceNow Hardware Asset Management documentation, the core sets of data required for effective IT asset management are:

•Manufacturers: The companies that produce the hardware assets, such as Dell, HP, Cisco, etc.

•Locations: The physical places where the hardware assets are stored or used, such as offices, data centers, warehouses, etc.

•Users: The people who own, use, or manage the hardware assets, such as employees, customers, vendors, etc.

•Models: The specific types or categories of hardware assets, such as laptops, servers, routers, etc.

According to the ServiceNow Hardware Asset Management documentation, original cost is the amount paid to acquire an asset, including any taxes, fees, shipping, installation, or other expenses directly related to the purchase. Original cost is used to calculate depreciation and amortization of an asset over its useful life. The other options are not the type of cost that taxes paid at the time of purchase are. Operating expense, operating cost, and capital expense are different ways of classifying the costs of using and maintaining an asset after it is purchased.

According to the ServiceNow Hardware Asset Management overview document1, the lease contract expiration flow sends notifications to the contract administrator before a lease contract expires and helps them act on the leased assets to return the asset or extend the contract.

According to the ServiceNow Elite blog post on contract management2, when the contract.expiration event runs on the Contract [ast.contract] table each night, an email message is sent to the person identified as the contract administrator at the following times:

90 days ahead of the contract expiration date

60 days ahead of the contract expiration date

30 days ahead of the contract expiration date

Day of expiration

Therefore, the correct answer is C, D, E, and F.

The reclamation process allows managers to select assets to be reclaimed from the asset service catalog, including hardware, software, and consumables. Only selected items will be processed for return.

The Asset Operations view consolidates tasks such as RMAs, audits, disposals, and stock orders into a single workspace, enabling managers to streamline operations efficiently.

 Operational expenses are the costs incurred by an organization to maintain and use an asset throughout its lifecycle. These costs include the expenses related to the repair, maintenance, upgrade, and disposal of the asset. Some examples of operational expenses are:

Replacement parts: These are the costs of purchasing and installing new parts or components for an asset that is damaged, worn out, or obsolete. For example, replacing a hard drive, a battery, or a keyboard for a laptop.

Maintenance agreements: These are the costs of contracting with a vendor or a service provider to perform regular or preventive maintenance on an asset. For example, paying a monthly fee for a technician to check and service a printer or a scanner.

Other examples of operational expenses are:

Storage costs: These are the costs of renting or owning a space to store an asset that is not in use or awaiting disposal. For example, paying for a warehouse, a locker, or a shelf to keep unused or surplus computers or monitors.

Warranty costs: These are the costs of extending or renewing the warranty coverage for an asset that is still under the manufacturer’s warranty or has expired. For example, paying an extra fee for a one-year or a three-year warranty extension for a tablet or a smartphone.