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But if any of the email does not contain the watermark and required prefixes, then inbound action will create the incident from the message and if the email contains the watermark then it will treat it as reply and update the record ingly.

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.

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.

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.

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.

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.

Inbound email actions are similar to business rules: both use conditions and scripts that take action on a target table. An inbound email action checks the email for a watermark that associates it with a task and checks for other conditions.

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.