Using Contracts and Entitlements Workflows

  • Release version: Yokohama
  • Updated January 30, 2025
  • 2 minutes to read
    • Summarize
    Summarized using AI
    This content was generated using new OpenAI-powered functionality. Results are provided on an as is basis and are not guaranteed to be accurate or complete.

    Summary of Using Contracts and Entitlements Workflows

    This feature enables you to efficiently create and manage service contracts, contract lines, and entitlements through workflows. It supports managing the full lifecycle of customer service contracts — from offer creation to contract generation — and allows you to perform bulk actions such as suspending, resuming, canceling, and renewing multiple entities simultaneously.

    Show full answer Show less

    Key Features

    • Workflow Management: Create, modify, suspend, resume, cancel, and renew service contracts, contract lines, and entitlements using automated workflows.
    • Automatic Contract Renewal: When creating contracts from quotes or orders, you can opt for auto-renewal. Renewal timing can be configured to trigger 90, 60, or 30 days before contract expiration or on contract creation date via the Customer Life Cycle Workflows Policy.
    • Renewal Price Adjustments: Automatically renew contracts based on either the list (market) price or contracted price. Contracted price renewals can apply a markup or markdown percentage to the current contract price, allowing flexible pricing strategies.
    • Contract Renewal Details Visibility: Renewal dates and adjustment values are clearly shown on the service contract form, though adjustments can only be modified on quotes and orders, not directly on contracts.
    • Contract End Date Alignment: During quote processing, alerts notify you if a contract’s end date exceeds the product offering’s end date. You have the option to update the contract end date to match the product offering end date before quote approval.
    • Co-terminate Quote Lines: Multiple quote lines can be assigned identical start and end dates, facilitating streamlined management of related services or products within a single quote.

    Practical Benefits

    • Automates routine contract lifecycle actions, reducing manual effort and errors.
    • Ensures contract pricing remains aligned with business policies through adjustable renewal pricing options.
    • Maintains contract validity by aligning contract periods with product offerings.
    • Improves quote management efficiency by enabling simultaneous date assignments to multiple quote lines.
    • Supports proactive contract management with configurable renewal triggers and alerts.

    Learn how contracts and entitlements using workflows enable you to create and manage service contracts, service contract lines, and entitlements.

    You can manage the life cycle of customer service contracts and entitlements from offer creation to contract generation using contracts and entitlements workflows. Using workflows you can suspend, resume, cancel, and renew multiple entities at once. You can also perform the following functions using workflows:
    • Create, suspend, resume, cancel, and renew service contracts.
    • Create, modify, suspend, resume, cancel, and renew service contract lines, and entitlements.

    Automatic renewal of service contracts

    While creating new service contracts from quote or orders, you can select the Auto-renew contract option on a quote or order to automatically renew the contracts. ​You can configure the auto-renewal date of the contract in the Customer Life Cycle Workflows Policy decision table. By default, you can choose to initiate the auto-renewal 90, 60, or 30 days before the contract end date, or on the contract creation date. For more info, see Creating contracts and entitlements using workflows.
    Figure 1. Automatic renewal for service contracts on quotes
    Auto-renew option
    In the Renewal adjustment basis field, you can select List price or Contracted price. Selecting List price renews the contract at the market price of the contract at the time of the renewal date.
    Figure 2. Renewal adjustment basis
    Renewal adjustment basis
    Selecting Contracted price gives you the option to renew the contract at Markdown % or Markup % of the current contract price. For example, if you select Markup % field and you enter 10 in Renewal adjustment value, the service contract will be renewed at 10% above the current contract price.
    Figure 3. Renewal adjustment type
    Renewal adjustment type
    That exact renewal date and the renewal adjustments for that service contract will be visible on the service contract form in the Auto renewal date field.
    Figure 4. Automatic renewal of service contracts
    Auto renewal date on service contract

    You cannot modify the renewal adjustment fields on the service contract. You can only modify the renewal adjustment values on the quote and orders.

    Updating contract end date

    During quote processing, the system alerts you when the contract end date is exceeding the product offering end date. When you submit quotes for approval, a dialog box appears alerting you. You can select the option update contract end dates to match offering end dates to match the contract end date to the product offering end date.
    Figure 5. Matching the contract and product offering end dates
    Matching end dates.
    If you do not select this option and approve the quote, the contract end date remains the same.

    Co-terminate quote lines

    You can assign the same start and end dates to multiple quote lines while creating or renewing a quote. On the Line items tab on the quote details page, select multiple quote lines and then select Co-terminate. All the selected quote lines have the same start and end date.
    Figure 6. Co-terminate quote lines
    Co-terminate option.