---
sourceDocument: Australia Customer Service Management
sourceDocumentLink: https://www.servicenow.com/docs/r/australia/customer-service-management

 Release :

    - australia

ft:locale :

    - en-US

ft:publication_title :

    - Australia Customer Service Management

ft:clusterId :

    - csm

bundleId :

    - csm

workflow :

    - Customer and Industry


---

# Creating contracts and entitlements

# Creating contracts and entitlements using workflows {#ariaid-title1}

Release version: Australia  
Updated March 12, 2026  
![](https://www.servicenow.com/docs/portal-asset/ico-clock) 3 minutes to read
Summarize  
![AI sparkle icon](https://servicenow.com/docs/portal-asset/ai-sparkle-icon) 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 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 handles contracts and entitlements based on the services associated with the sold product and any additional purchased services, streamlining order fulfillment and customer lifecycle management in ServiceNow.
Show full answer Show less  

## Offering Types and Workflow Behavior

* **Offers for entitlements:** Automatically create entitlement records linked to sold products, install base items, product inventory, or customers.
* **Offers for services (contract lines):** Automatically generate customer contracts, contract lines, and related entitlements.
* **Implicit offerings:** Create entitlements and contract lines automatically without showing them on order lines, useful for package components not configured during order capture.

## Contract Creation and Product Inventory Integration

For orders with multiple product offerings, a single contract with multiple contract lines is created. Each order line generates a sold product record.

When the system property `snindtmtorm.enableprodinvtforordermanagement` is enabled, product inventories are created from customer orders. These inventories trigger creation and synchronization of contract lines and entitlements, including state updates and lifecycle operations such as disconnect, resume, and suspend, ensuring contracts and entitlements remain current with inventory status.

## Configuring Customer Life Cycle Workflows

The **Customer Life Cycle Workflows Policy decision table** governs how contracts, contract lines, and entitlements are renewed or modified. It determines which target entities to create---quote, order, opportunity, or both opportunity and quote---during renewal or modification processes.

Key configuration options include:

* **Target Entity Name:** Choose from order, quote, opportunity, or a combination of opportunity and quote. Note that opportunities cannot be created during contract modifications.
* **Auto Renewal Initiation:** Define when automatic renewal should trigger---options include 90, 60, or 30 days before contract end date or on contract creation date. Special timing options exist for combined opportunity and quote renewals.

To enable opportunity creation during renewals, administrators must configure sales cycle types (e.g., a "RENEW" sales cycle) and opportunity stages (e.g., "Develop"), ensuring the proper workflow context.

## Practical Benefits for ServiceNow Customers

* Automates contract and entitlement creation aligned with product sales and order fulfillment, reducing manual effort.
* Supports complex product offerings including implicit packages, improving accuracy and completeness of contract data.
* Integrates with product inventory workflows to maintain contract and entitlement synchronization with inventory lifecycle states.
* Provides flexible renewal and modification workflows tailored via policy tables, enabling precise control over when and how renewals generate quotes, orders, or opportunities.  
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.
{#create-cont-ent-workflows-csm__table_bkc_v2f_21c__entry__2}

| 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 customer contract, customer contract lines, and the entitlements for those contract lines. |
| Implicit offerings | Implicit entitlements and customer 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 customer contract lines are automatically created as a part of this workflow. |
[Table 1. Offering types and workflows]

{#create-cont-ent-workflows-csm__table_bkc_v2f_21c}

## Creating a contract from an order {#create-cont-ent-workflows-csm__section_fjl_w2w_tcc}

For every order with multiple product offerings, a single contract with multiple contract lines is created. As part of the order processing, a sold product is generated for every order line.

## Creating contracts from product inventory records {#create-cont-ent-workflows-csm__section_kbl_zcl_zdc}

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](https://www.servicenow.com/docs/rbr2PxnT73NB0iBIUxOMZg "You can select one or more product inventory records to update their configurations and perform the Modify,Suspend, Resume, and Disconnect operations."). 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.
{#create-cont-ent-workflows-csm__ul_ywp_5hl_zdc}

## Configuring Customer Life Cycle Workflows Policy decision table {#create-cont-ent-workflows-csm__section_qp4_rxv_tcc}

Customer Life Cycle Workflows Policy decision table decides the target entity while renewing and modifying customer contracts, customer 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 customer contract. For a target entity, you can also select when you want to initiate the renewal of the customer contract.
Figure 1. Inputs in Customer Life Cycle Workflows Policy decision table Figure 2. Conditions in Customer Life Cycle Workflows Policy decision table

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.
{#create-cont-ent-workflows-csm__table_khy_45b_v2c__entry__2}

| 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. |
[Table 2. Values of target entities]

{#create-cont-ent-workflows-csm__table_khy_45b_v2c}  
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](https://www.servicenow.com/docs/access?context=opportunity-management-sales-cycle-types&version=australia&pubname=australia-order-management&ft:locale=en-US).
* Opportunity Stage: In the Name field, enter Develop and set the Active option to True. For more info, see [Create opportunity stages](https://www.servicenow.com/docs/access?context=opportunity-management-opportunity-stages&version=australia&pubname=australia-order-management&ft:locale=en-US).
{#create-cont-ent-workflows-csm__ul_m1h_21p_1fc}

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.  
For any target entity, 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. For target entity as opportunity and quote together, you can also select the following options to create the renewed opportunity and quote on separate dates:

* With contract, 12 months before end date respectively: Opportunity is auto renewed on the contract creation date and the quote is renewed 12 months before the contract expiry date.
* 90, 90 days before end date respectively: Opportunity and quote both are renewed 90 days before the contract expiry date.
{#create-cont-ent-workflows-csm__ul_f11_cvp_1hc}