Creating contracts and entitlements using workflows

Release version: Yokohama

Updated January 30, 2025

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Summary of Creating contracts and entitlements using workflows

This workflow automates the creation of contracts and entitlements after a customer selects and purchases a product offer. It generates records based on the services tied to the sold product and any additional purchased services, helping streamline contract management in ServiceNow.

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Offering Types and Workflow Behavior

Offers for entitlements: Creates entitlement records linked to sold products, install base items, product inventory, or the customer.
Offers for services (contract lines): Automatically creates a service contract with corresponding contract lines and entitlements.
Implicit offerings: These are not shown on order lines and require no configuration during order capture; entitlements and contract lines are created automatically as part of the workflow.

Contract Creation and Management

From orders: A single contract with multiple contract lines is created for orders with multiple product offerings. You can add product offerings to an existing contract by referencing it in the order line.
From product inventory records: When enabled via system property snindtmtorm.enableprodinvtforordermanagement, product inventories are created from orders, triggering contract lines and entitlement creation. Changes in product inventory state synchronize with contract lines and entitlements.

Product Inventory Impact on Contracts and Entitlements

ADD flow: Creates contract and entitlement records.
MODIFY flow: Updates states and fields of contract lines and entitlements.
DISCONNECT, RESUME, SUSPEND flows: Manage cancellation, activation, or suspension of contract lines and entitlements based on scheduled operations.

Configuring Customer Life Cycle Workflows

The Customer Life Cycle Workflows Policy decision table governs the target entity creation when renewing or modifying service contracts, contract lines, and entitlements. It determines whether to generate a quote, order, opportunity, or both opportunity and quote, and specifies when to initiate automatic renewal.

Target Entities and Renewal Settings

Target entity options include: Order, Quote, Opportunity, or Opportunity and Quote together (with specific restrictions on modifying processes).
To enable opportunity creation during renewal, admins must configure a sales cycle type with code RENEW and an active opportunity stage called Develop.
Auto Renewal Initiation: Allows configuring renewal triggers at 90, 60, 30 days before contract end, or on contract creation date.

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 configurations. 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, you can create a quote, an order, an opportunity, or an opportunity and a quote together while renewing or modifying a service contract. For a target entity, you can also select when you want to initiate the renewal of the service contract.

You can configure rules based on the six available input parameters to a required target entity while renewing and modifying contracts. Select the following values in the Target Entity Name column to create the corresponding target entities.

Table 2. Values of target entities
Value	Target Entity
`sn_ind_tmt_orm_order_line_item`	Order
`sn_quote_mgmt_core_quote_line_item`	Quote
`sn_opty_mgmt_core_opportunity_line_item`	Opportunity Note: You cannot create opportunities for modifying process.
`sn_quote_mgmt_core_quote_line_item,sn_opty_mgmt_core_opportunity_line_item`	Opportunity and quote together Note: You cannot create opportunities and quotes for modifying process.

Note:

To create an opportunity or opportunity and quote together during renewal, the admin needs to set up the following records:

Sales Cycle Type: In the Code field, enter RENEW and set the Active option to True. For more info, see Create a sales cycle for an opportunity.
Opportunity Stage: In the Name field, enter Develop and set the Active option to True. For more info, see Create opportunity stages.

If the user selects an opportunity and a quote as target entities, a renewal opportunity and a quote is created. The opportunity and the quote are associated to each other.

Select one of the following options in the Auto Renewal Initiation column to indicate when you want to automatically renew the contract: 90, 60, 30 days before contract end date or on the contract creation date.