Defining the contracts and agreements for the customers

[simone007]

I recently started working with SOM, and now I need to define contracts and agreements for customers. Is there a proper way to handle this?

[Me Being Mustaq · Accepted solution]

Hi @simone007 ,

To handle contracts and agreements for customers in ServiceNow SOM (Sales and Order Management), the best practice is to leverage Contract Management Pro, which integrates seamlessly with SOM and Customer Service Management (CSM). This enables creating, tracking, and managing customer contracts throughout their lifecycle.

Proper Way to Handle Contracts and Agreements in SOM

• Use Contract Management Pro Application:
  This module allows creating sales contracts directly from quotes and opportunities within SOM, automating the transition from sales to contract stage.​
  Contracts define terms, entitlements (like SLAs, product warranties), renewal dates, and pricing, providing a centralized source of truth.

• Automate Contract Workflows:
  SOM supports workflows to automate contract creation, approval, renewal, and modification—reducing manual effort and errors. For example, when a quote is approved, a contract is auto-generated with predefined templates.​

• Standardize Contracts with Templates:
  Using contract templates ensures consistency in terms, clauses, and language across different contracts. This speeds up contract generation and maintains legal/compliance standards.​

• Track Contract Entitlements and Renewals:
  Contracts link to customer entitlements and can trigger automated renewal reminders or modification workflows, helping the customer success teams proactively manage customer relationships.​

• 360-Degree Customer View:
  Integrated SOM contract management provides a consolidated view of sales contracts, entitlements, quotes, and subscriptions, improving visibility and decision-making.​

• Optional Electronic Signatures and Document Automation:
  Many SOM deployments integrate contract review and electronic signature capabilities to streamline closing deals and storing signed agreements.

Getting Started

1. Activate Contract Management Pro plugin/module in your instance if not already enabled.

2. Define contract templates for different agreement types.

3. Map contracts to products and entitlements in your SOM product catalog.

4. Set up workflow automation for contract lifecycle events (creation, renewal).

5. Train your sales and service agents to use contracts within SOM and CSM interfaces.

Summary:
The proper approach is to use Contract Management Pro integrated with SOM, which supports automated contract creation from quotes, standardized templates, entitlements tracking, and lifecycle automation. This ensures streamlined, consistent, and manageable customer agreements in your SOM environment

Please refer to the below link:-

• https://www.servicenow.com/docs/bundle/store-release-notes/page/release-notes/store/sales-order-mana...
• https://www.servicenow.com/content/dam/servicenow-assets/public/en-us/doc-type/resource-center/data-...

If it is helpful, please hit the thumbs button and accept the correct solution by referring to this solution in the future it will be helpful to them.

Thanks & Regards,

Mohammed Mustaq Shaik