To convert an incident request to service request, do the following:
Select the incident request from the request list view by clicking on the subject of request
Under Actions dropdown, select Convert Incident to Service option
Convert Incident to Service popup will open up as shown below:
Select the Service Category and Choose the Service Template
Check Overwrite the incident field values with the template values checkbox in case you want to overwrite the existing request's values
Check Create the tasks present in the Service Template checkbox if you want to apply task hierarchy already defined as per the selected template of the service request
Specify suitable comments
Click Convert button
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