Define support terms for customers by using contracts

Effectively track the terms and conditions of support you’ll provide to customers for the products they’ve purchased. In Microsoft Dynamics CRM, contracts define information like the duration of the contract, how many case incidents or minutes of service the customer has purchased, and what hours and days of the week the service or support coverage is available.

Create contracts

You can create new contracts based on contract templates. These define some information, such as allotment types, before you actually write a contract. You can create contracts only for existing accounts and contacts.

A contract has the status of draft until it is invoiced. Each new contract is assigned a unique ID that cannot be used for another contract, unless the contract is being renewed. When renewing a contract, the contract is saved as a draft with an ID that corresponds to the original contract.

Invoice and activate a contract

After a contract has at least one contract line and a billing address, you can mark the contract status as invoiced. Changing the status implies that you have accepted the contract.

Microsoft Dynamics CRM does not automatically invoice the customer or create an invoice record unless your business has integrated Microsoft Dynamics CRM with a Microsoft BackOffice product.

The contract status is invoiced until the start date has passed. Then, the status changes to active. You cannot delete a contract with an invoiced or active status.

Renew a contract

After passing the end date of the contract, the contract is expired and cases cannot be opened against it. To open a new case against the contract, renew the contract.

When you renew a contract, a draft copy of the contract is created with the same ID number as the original, expired contract. You can make modifications to the new draft contract, including adding or modifying contract lines. You have the option of including contract lines that were canceled from the original contract. After the original contract expires, invoice and activate the renewed contract.

A renewed contract has the same ID number as the original contract, reflecting the renewal action in the contract's history. The start date is automatically set to the day after the existing contract expires. While Microsoft Dynamics CRM gives the renewed contract the same duration as the original contract automatically, you can change the duration manually.