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

ankurthole1
Tera Contributor

3 weeks ago

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.

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1 REPLY 1

pr8172510
Kilo Sage

3 weeks ago

Hi @ankurthole1,

A Software Entitlement represents the license rights owned during a period and is used for reconciliation and compliance calculations.
 Entitlements as the mechanism used to tie software owned to software installations and determine compliance.

  • Option 1 (01-Jul-2025 to 30-Jun-2028) may be appropriate if the entitlement quantity remains constant throughout the EA term.

  • Option 2 (separate entitlement records per annual period) may be appropriate if annual true-ups change the effective license quantity and you need to preserve historical entitlement positions.

The decision should be driven by how Microsoft true-up purchases are recorded and how compliance, audit, and financial reporting need to be represented.

 entitlement design should align with the customer's licensing and reporting requirements.