Microsoft EA/SCE Entitlement - Guidance on Start Date and End Date for Annual True-Up Agreements

[ankurthole1]

Hello Everyone

 I am onboarding Microsoft entitlements into ServiceNow SAM Pro and need guidance on how entitlement records should be created for a Microsoft Enterprise Agreement (EA) and Server & Cloud Enrolment (SCE).

Scenario:

• Microsoft contract term is 3 years.
• Contract started on 01-Jul-2025 and expires on 30-Jun-2028.
• Customer has annual true-up rights and entitlement quantities can change each year based on true-up activities.
• We are currently in Year 2 (01-Jul-2026 to 30-Jun-2027).
• The renewal price sheet shows baseline quantities from contract inception, but we are waiting for confirmation on whether any additional purchases or entitlement adjustments were made during the latest true-up cycle.

My question is:

 Option 1

Should the entitlement record be created using the full contract term?

1.Start Date : 01-Jul-2025

2.End Date : 30-Jun-2028

1. Subscription Period : 36 Months

Option 2

Should the entitlement record reflect only the currently active contract year?

1. Start Date : 01-Jul-2026
2. End Date : 30-Jun-2027

and then create separate entitlement records for each annual period based on true-up quantities?

My objective is to:

• Maintain accurate entitlement quantities in SAM Pro.
• Correctly represent annual true-up changes.
• Ensure compliance and financial reporting align with Microsoft EA/SCE licensing practices.

How do you typically model Microsoft EA/SCE entitlements in ServiceNow when annual true-up activities occur during a multi-year agreement?

Any guidance or best practices would be appreciated.