Creating contracts and entitlements using workflows

  • Release version: Washingtondc
  • Updated February 1, 2024
  • 2 minutes to read
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    Summary of Creating Contracts and Entitlements Using Workflows

    This guide outlines the process of creating contracts and entitlements through workflows in ServiceNow after a customer selects and purchases a product. The workflows automatically generate necessary records based on the services linked to the sold product and any additional services purchased by the customer.

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    Key Features

    • Entitlement Creation: Automatically generates entitlement records for offerings, which can be tied to existing sold products or customer records.
    • Service Contract Automation: Facilitates the automatic creation of service contracts, including contract lines and related entitlements, based on service offerings.
    • Implicit Offerings: Allows for implicit entitlements and service contract lines that do not appear on order lines, streamlining the order process.
    • Contract Management: Supports the creation of a single contract with multiple lines from an order with various product offerings, allowing for the addition of existing contracts.
    • Product Inventory Integration: If enabled, the system can create product inventories from orders, leading to the automatic creation and synchronization of contract lines and entitlements with inventory state changes.

    Key Outcomes

    By utilizing these workflows, ServiceNow customers can expect a streamlined process for managing contracts and entitlements, ensuring that all necessary records are created and updated automatically. This leads to enhanced efficiency in order management and improved tracking of service agreements throughout the customer lifecycle.

    To effectively use these features, ensure that the Order Management and Quote Management plugins are installed, allowing users to create quotes or orders during the renewal or modification of service contracts and entitlements.

    After a product offer is selected by the customer and the product is sold to the customer, this workflow creates contracts and entitlements based on the services associated with that sold product and the extra services that the customer has purchased.

    There are the product offering scenarios and their configurations.

    Table 1. Offering types and workflows
    Offering types Description
    Offers for entitlements The workflow creates entitlement records for such offerings. These entitlements can be associated with existing sold products, install base items, product inventory records, or the customer.
    Offers for services (contract lines) The workflow enables automatic creation of a service contract, service contract lines, and the entitlements for those contract lines.
    Implicit offerings Implicit entitlements and service contract lines are not shown on order lines. These offers can be marked as implicit when they do not need to be configured while capturing the order and are available as part of a package. These entitlements and service contract lines are automatically created as a part of this workflow.

    Creating a contract from an order

    For every order with multiple product offerings, a single contract with multiple contract lines is created. You can add multiple product offerings from an order to an existing contract. To add a product offering to an existing contract, add the contract reference in the Existing Contract field of the order line item. As part of the order processing, a sold product is generated for every order line.

    Creating contracts from product inventory records

    If the system property sn_ind_tmt_orm.enable_prod_invt_for_order_management is set to true, order fulfillment workflows create product inventories based on customer orders, product offerings and specifications. On creation of a product inventory, contract lines and entitlements will be created. When a product inventory undergoes a state change, the associated contract lines and entitlements are synced. For more information, see . Product inventory records trigger updates to contracts and entitlements under the following conditions:
    • Process Telecom Order Line flow: The ADD flow creates contract and entitlement records from the product inventory. The MODIFY flow updates the states of the contract line items and entitlements.
    • Post Process Telecom Top Domain Order flow: The MODIFY flow updates the states, fields, and characteristics for contract line items and entitlements.
    • Product Inventory Operations record: Depending on the scheduled date and time, the DISCONNECT, RESUME, and SUSPEND flows cancels, activates, or suspends the contract line items and entitlements.

    Configuring Customer Life Cycle Workflows Policy decision table

    Customer Life Cycle Workflows Policy decision table decides the target entity while renewing and modifying service contracts, service contract lines, and entitlements. Based on this decision table, users can create a quote or an order while renewing or modifying a service contract, service contract line, or an entitlement.

    Figure 1. Customer Life Cycle Workflows Policy decision table
    Customer Life Cycle Workflows Policy decision table.

    You can configure rules based on the five available input parameters to create quotes while renewing and modifying contracts. Select the value of Target Entity Name as sn_ind_tmt_orm_order_line_item to create an order. Select the value of Target Entity Name as sn_quote_mgmt_core_quote_line_item to create a quote. If the user selects a quote, the quote is approved and the status changes to Complete to create an order. Ensure that you have installed Order Management (com.sn_ind_tmt_orm) and Quote Management (sn_quote_mgmt) plugins to enable selecting the target entity for renewal and modify workflows. Both these plugins will enable users to create a quote or an order while renewing or modifying a service contract, service contract line, or an entitlement.