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Through inbound actions, ServiceNow instance can perform two things: Record action : In record action new incident gets created or any existing record will get updated in service now instance. Email Reply:

When a watermark is present in a reply email, ServiceNow looks up the record associated with the watermark to find its table. In order for your inbound action to match the email, the record's table must match the Inbound Email Action's target table.

By default, the system generates a watermark label at the bottom of each notification email to allow matching incoming email to existing records. Each watermark includes a random 20-character string that makes it unique.

ServiceNow Inbound email actions is a configuration which tells that how and what your ServiceNow instance will respond, when it receives email from user. The responses are based on the content of the email received. Inbound emails action use conditions and scripts to perform action on the targeted table.

Any time there is email sent from SN it attaches watermark to the email footer. If someone replies to it, It will update that ticket where that email came from.

Watermarks can be used to protect confidential information and to indicate the validity of a legal document. You'll also watermarks any paper banknote, where they're used to help prevent counterfeiting.

On the Design tab, select Watermark. Choose a pre-configured watermark, like DRAFT, CONFIDENTIAL, or DO NOT COPY. For placing a logo or image, Select Watermark > Custom Watermark > Picture watermark > Select Picture.

Watermark/Record Number If an inbound email is recognized as a reply or forward, ServiceNow attempts to match the incoming email with an existing record by looking for a unique watermark in the subject line or message body. By default, watermarks are inserted as the last line of outbound messages.