Renewals EBook

Introduction

Chapter 1: The Basics of Renewal Architecture

Chapter 2: Revenue Movement

Chapter 3: Mid Term Contract Changes

Conclusion

Contracts may need adjustments mid-term, such as churn, upsells, or downsells. Managing these changes ensures accurate revenue tracking and valuable customer insights.

In this section, we’ll cover how to handle mid-term adjustments with small changes to the data model and introduce screen flow automation to streamline updates, keeping workflows simple for your team.

Data Model

Handling mid-term upsells requires several adjustments to the data model to ensure flexibility and accuracy. These updates introduce new fields and relationships, allowing for seamless amendments to active contracts without modifying the original agreement.

A new Upsell Record Type will be introduced to differentiate mid-term upsells from other contract changes. The Amendment Of lookup field will link upsell records to the original active Opportunity contract, keeping the base contract intact while tracking amendments.

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Object Reference:

Opportunities: https://help.salesforce.com/s/articleView?id=sf.opportunities.htm&type=5

Record Types: https://help.salesforce.com/s/articleView?id=sfdo.SFDO_Create_Record_Type.htm&type=5

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Fields like Contract Status ensure that only active contracts are modified, and Total Amendment ARR tracks the cumulative impact of all amendments. The ARR Up For Renewal field will also be updated to include both base ARR and upsell ARR, ensuring accurate reporting.

Aside from Contract Status, these changes are specific to mid-term upsells, while existing fields will handle mid-term downsells and churn. With these updates, the data model will be fully equipped to manage the complexities of mid-term contract changes.

The diagram below outlines the key fields needed for handling mid-term contract changes:

Figure 10: Opportunity With Mid-Term Change Fields

Figure 10: Opportunity With Mid-Term Change Fields

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With these data model adjustments in place, it's now time to tackle mid-term changes. Screen Flows will be introduced to improve the user experience. While it's technically possible to manage these adjustments manually with the current schema, the process can be confusing and complicated for end users. Screen Flows will simplify the experience and make it easier to manage contract changes seamlessly.