Contracts record service level agreements (SLA) and entitlements. You can create contracts for new and existing customers and specify the type of service and terms that apply to each customer. This information includes the duration of the contract, how many calls or e-mail messages purchased, what hours and days of the week coverage is available, and the service entitlements. The contracts can also include the metrics for that entitlement, such as the response time; preventive maintenance plans; which products or parts of the product are covered; and service details such as the type of service and billing for labor, parts, and other expenses.
You can use templates to make sure that contracts are consistent across the organization. Contract templates pre-define the billing frequency, allotment type, and service coverage. You can create different templates for different types of customer service support and define the elements of the contract. For example, you can create one contract template for software support and another one for hardware support.
More information: Work with Contract Templates
When you create a contract, you can either start with a contract template or an existing contract, in which case, the new contract inherits the copied contract's template. After the contract is activated or invoiced, the contract template selection cannot be changed. Changes to the contract template do not affect contracts based on the original contract.
More information: Creating Contracts