diff --git a/src/Apps/W1/Subscription Billing/App/Service Commitments/Tables/SubscriptionLine.Table.al b/src/Apps/W1/Subscription Billing/App/Service Commitments/Tables/SubscriptionLine.Table.al
index c9c071b8e6..f5e28d8dd7 100644
--- a/src/Apps/W1/Subscription Billing/App/Service Commitments/Tables/SubscriptionLine.Table.al	
+++ b/src/Apps/W1/Subscription Billing/App/Service Commitments/Tables/SubscriptionLine.Table.al	
@@ -752,6 +752,8 @@ table 8059 "Subscription Line"
     begin
         if IsInitialTermEmpty() then
             exit;
+        if not IsExtensionTermEmpty() then
+            exit;
 
         TestField("Subscription Line Start Date");
         "Subscription Line End Date" := CalcDate("Initial Term", "Subscription Line Start Date");
@@ -764,10 +766,16 @@ table 8059 "Subscription Line"
         if "Subscription Line End Date" <> 0D then
             "Term Until" := "Subscription Line End Date"
         else
-            if not IsNoticePeriodEmpty() then begin
+            if not IsExtensionTermEmpty() then begin
                 TestField("Subscription Line Start Date");
-                "Term Until" := CalcDate("Notice Period", "Subscription Line Start Date");
-                "Term Until" := CalcDate('<-1D>', "Term Until");
+                if not IsInitialTermEmpty() then begin
+                    "Term Until" := CalcDate("Initial Term", "Subscription Line Start Date");
+                    "Term Until" := CalcDate('<-1D>', "Term Until");
+                end else
+                    if not IsNoticePeriodEmpty() then begin
+                        "Term Until" := CalcDate("Notice Period", "Subscription Line Start Date");
+                        "Term Until" := CalcDate('<-1D>', "Term Until");
+                    end;
             end;
         CalculateCancellationPossibleUntil();
     end;
diff --git a/src/Apps/W1/Subscription Billing/Test/Service Commitments/SalesServiceCommitmentTest.Codeunit.al b/src/Apps/W1/Subscription Billing/Test/Service Commitments/SalesServiceCommitmentTest.Codeunit.al
index bfe4501dca..d1dddf514d 100644
--- a/src/Apps/W1/Subscription Billing/Test/Service Commitments/SalesServiceCommitmentTest.Codeunit.al	
+++ b/src/Apps/W1/Subscription Billing/Test/Service Commitments/SalesServiceCommitmentTest.Codeunit.al	
@@ -2083,6 +2083,32 @@ codeunit 139915 "Sales Service Commitment Test"
         Assert.AreEqual(SalespersonPurchaser.Code, ServiceObject."Salesperson Code", 'Salesperson Code should be populated from Customer');
     end;
 
+    [Test]
+    procedure CheckSubscriptionLineEndDateNotSetWhenSubsequentTermIsUsed()
+    begin
+        // [SCENARIO] When posting a Sales Order for an item with both Initial Term and Subsequent Term,
+        // the resulting Subscription Line End Date must remain empty (contract auto-renews indefinitely)
+        Initialize();
+
+        // [GIVEN] A Sales Service Commitment Item with a package having Initial Term <12M> and Subsequent Term <12M>
+        // Note: InitServiceCommitmentPackageLineFields (called in Initialize) already sets both terms
+        ContractTestLibrary.SetupSalesServiceCommitmentItemAndAssignToServiceCommitmentPackage(Item, Enum::"Item Service Commitment Type"::"Sales with Service Commitment", ServiceCommitmentPackage.Code);
+
+        // [GIVEN] A Sales Order for the item
+        LibrarySales.CreateSalesHeader(SalesHeader, SalesHeader."Document Type"::Order, '');
+        LibrarySales.CreateSalesLineWithShipmentDate(SalesLine, SalesHeader, Enum::"Sales Line Type"::Item, Item."No.", WorkDate(), 1);
+
+        // [WHEN] The Sales Order is posted
+        LibrarySales.PostSalesDocument(SalesHeader, true, true);
+
+        // [THEN] The resulting Subscription Line End Date is empty because a Subsequent Term is defined
+        ServiceObject.FilterOnItemNo(Item."No.");
+        ServiceObject.FindFirst();
+        ServiceCommitment.SetRange("Subscription Header No.", ServiceObject."No.");
+        ServiceCommitment.FindFirst();
+        ServiceCommitment.TestField("Subscription Line End Date", 0D);
+    end;
+
     #endregion Tests
 
     #region Procedures
diff --git a/src/Apps/W1/Subscription Billing/Test/Service Objects/ServiceObjectTest.Codeunit.al b/src/Apps/W1/Subscription Billing/Test/Service Objects/ServiceObjectTest.Codeunit.al
index 31614eb724..9869932204 100644
--- a/src/Apps/W1/Subscription Billing/Test/Service Objects/ServiceObjectTest.Codeunit.al	
+++ b/src/Apps/W1/Subscription Billing/Test/Service Objects/ServiceObjectTest.Codeunit.al	
@@ -308,8 +308,8 @@ codeunit 148157 "Service Object Test"
         SubscriptionLine.SetRange("Subscription Header No.", SubscriptionHeader."No.");
         SubscriptionLine.FindFirst();
 
-        // [GIVEN] The Subscription Line End Date, Term Until, and Cancellation Possible Until are populated
-        Assert.AreNotEqual(0D, SubscriptionLine."Subscription Line End Date", '"Service End Date" not set.');
+        // [GIVEN] End Date is not auto-set because Subsequent Term (Extension Term) is defined; Term Until and Cancellation are still populated
+        Assert.AreEqual(0D, SubscriptionLine."Subscription Line End Date", '"Service End Date" should not be set when Subsequent Term is defined.');
         Assert.AreNotEqual(0D, SubscriptionLine."Term Until", '"Term Until" not set.');
         Assert.AreNotEqual(0D, SubscriptionLine."Cancellation Possible Until", '"Cancellation Possible Until" is not set.');
 
@@ -688,6 +688,34 @@ codeunit 148157 "Service Object Test"
         SubscriptionLine.TestField("Subscription Line End Date", 0D);
     end;
 
+    [Test]
+    procedure CheckSubscriptionLineEndDateNotSetWhenSubsequentTermIsUsed()
+    var
+        Item: Record Item;
+        SubscriptionLine: Record "Subscription Line";
+        SubscriptionHeader: Record "Subscription Header";
+        DateFormulaVariable: DateFormula;
+    begin
+        // [SCENARIO] CalculateServiceEndDate does not set End Date when Subsequent Term (Extension Term) is defined
+        Initialize();
+
+        SetupServiceObjectWithServiceCommitment(Item, SubscriptionHeader, false, false);
+        FindServiceCommitment(SubscriptionLine, SubscriptionHeader."No.");
+
+        // [GIVEN] A Subscription Line with Start Date, Initial Term of 1 month, and Subsequent Term of 1 month
+        SubscriptionLine.Validate("Subscription Line Start Date", WorkDate());
+        Evaluate(DateFormulaVariable, '<1M>');
+        SubscriptionLine.Validate("Initial Term", DateFormulaVariable);
+        SubscriptionLine.Validate("Extension Term", DateFormulaVariable);
+
+        // [WHEN] CalculateServiceEndDate is called
+        SubscriptionLine.CalculateServiceEndDate();
+
+        // [THEN] Subscription Line End Date remains empty because Subsequent Term is defined
+        SubscriptionLine.TestField("Subscription Line End Date", 0D);
+    end;
+
+
     [Test]
     procedure CheckServiceCommitmentServiceInitialTerminationDatesCalculation()
     var
@@ -1926,8 +1954,11 @@ codeunit 148157 "Service Object Test"
         ExpectedTermUntil: Date;
         ExpectedCancellationPossibleUntil: Date;
     begin
-        ExpectedEndDate := CalcDate(InitialTerm + '-1D', StartDate);
-        ExpectedTermUntil := ExpectedEndDate;
+        ExpectedTermUntil := CalcDate(InitialTerm + '-1D', StartDate);
+        if Format(SubscriptionLine."Extension Term") = '' then
+            ExpectedEndDate := ExpectedTermUntil
+        else
+            ExpectedEndDate := 0D;
         ExpectedCancellationPossibleUntil := CalcDate('-' + NoticePeriod, ExpectedTermUntil);
         if DateTimeManagement.IsLastDayOfMonth(ExpectedTermUntil) then
             DateTimeManagement.MoveDateToLastDayOfMonth(ExpectedCancellationPossibleUntil);