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The Contract Renewals add-on module in NetSuite enables you to create renewal records from a contract. The Salesforce Connector creates Opportunity records in Salesforce for each of the contract renewal records. If the contract renewal is for a customer who does not exist in Salesforce, then a new account record is created in Salesforce for the customer along with the renewal opportunity. The renewal record that originates from NetSuite is updated every time this contract renewal opportunity is sent back to NetSuite.
This setting will only be enabled if the Contract Renewal module is enabled on the NetSuite account. This allows you to choose a field from NetSuite Contract Renewals module to determine which contract renewal model to choose.
If the contract renewal module is enabled in the NetSuite account, an order type field is created (order type field is part of every NetSuite transaction, ie. contract renewal, contract upsell, downsell etc.). If such a contract is being set up, this sales order will create a Salesforce opportunity as part of the contract renewal module. Then you can set the stage of the opportunity (prospecting, quoting etc.).
Contract Renewal Field Name and Contract Renewal Field Values are directly sourced from the Contract Renewal Module in NetSuite and can’t be set.
Contract Renewal Field Name: Field to use from NetSuite Contract Renewals Module to determine Renewal Type. This field comes from Contract Renewal Module and cannot be changed. Typically, it is Order Type
Contract Renewal Field Values: NetSuite Contract Renewal Types to use for Opportunity Creation in Salesforce.
Contract Renewal Transaction Type: NetSuite Contracts Module selected Renewal Transaction Type. Refresh to update.
Create Salesforce Opportunity in Stage: When creating Renewals in Salesforce as an Opportunity, set the Opportunity Status to selected value. Available values are:
Click Save Settings to complete the Contract Renewals Sync Configurations.
Contract Renewal Workflow
|NEW ORDER CREATION||1a||Reps work new opportunities in Salesforce. When these are won, they sync to NetSuite as a Sales Order pending approval.|
|1b||NetSuite generates a ‘Contract’ object. This stores information regarding all of the recurring items sold on the deal and the term that applies.|
|UPSELL ORDER CREATION||2a||In the event of a customer requiring an upsell, reps will create an upsell opportunity in Salesforce, picking from a list of existing ‘Contracts’ in NS. The closed-won upsell syncs to NetSuite as a Sales Order pending approval.|
|2b||The upsell sales order creates an additional contract item on the ‘Contract’|
|DOWNSELL ORDER CREATION||3||In the event of a customer requiring a downsell (ie. they don’t want something to renew), finance/accounting creates a Return Order in NetSuite (RMA). The return updates the ‘Contract’ to reflect a down-sold item.|
|CONTRACT SYNC||4||The contract syncs to Salesforce anytime it is updated. This ensure reps have a current view of all upsells and downsells associated with the ‘Contract’.|
|RENEWAL ORDER||5||NetSuite generates renewal transactions (ie. Opportunity). This will sync back to Salesforce as a renewal opportunity, with a link to the contract object (‘From Contract’) that the renewal it was generated with.|
|6a||When the renewal opportunity is won, it syncs to NetSuite as a Renewal Sales Order pending approval.|
|6b||The renewal sales order will also create a new contract object for the renewal term. From the renewal opportunity, Salesforce also sends a ‘From Contract’ link to facilitate a clear reporting connection of renewed contracts vs churn.|
NetSuite Contract to Salesforce Contract sync – When a new Salesforce Opportunity is synced as a NetSuite Sales Order (flow 1a), the Contract renewal module creates a new Contract for this Sales Order in NetSuite (flow 1b). The Connector syncs this newly created NetSuite Contract to native Salesforce Contract object (flow 4).
NetSuite Contract line items to Salesforce Contract line items – The Items in the synced NetSuite Sales Order are added as Contract Items in the new Contract by the Contract renewal module. These Contract Items are also synced to Salesforce as a custom related list in the native Contract object (flow 4).
Support for different Contract transactions:
- New – Described above
- Upsell – An upsell Salesforce Opportunity is created in Salesforce by selecting an active Contract synced previously. When this Opportunity is synced as a NetSuite Sales Order (flow 2a), the Contract renewal module adds items in the upsell Opportunity to the existing Contract as Contract Items (flow 2b). This updated Contract is synced back to Salesforce Contract along with Contract items (flow 4).
- Renewal – If the Contract Renewal module creates a renewal transaction (Opportunity, Sales Order or Quote) in NetSuite for a Contract , it is synced to Salesforce as a Renewal Opportunity (flow 5). If this Opportunity is won, then it is synced back as NetSuite Sales Order (flow 6a) and the Contract renewal module will create a renewal transaction for this Contract (flow 6b).
Support for Direct Sales and Channel Sales for Contract renewal – Whether the Salesforce Opportunity is a direct sale to the End User or an indirect sale via a Reseller or Distributor, the Connector supports all combinations of bill to customer and ship to customer.
Support for monthly and annual pricing of Items – Whether the Items in NetSuite are setup with monthly pricing or annual pricing, the Connector adjusts accordingly to appropriately calculate total order amount for a given Contract. The Connector also shows the total amount calculations done by NetSuite Contract renewal module within the Salesforce Opportunity so that the Sales rep can be sure about their selections before syncing the Opportunity as a Sales Order.
Contract Renewal flow
In NetSuite Contract Renewal module, the Sales Order has the following entities:
- End User
- Bill to Customer (customer who pays the bill)
The ‘Bill to Customer’ field is not editable and is set up by NetSuite, based the Channel Sales settings.
There are three types of Customers identified by the ‘Channel Tier’ setting
- End User – Customer who finally receives the Item
- Reseller – Customer who acts as a reseller
- Distributor – Customer who acts as a distributor
In the Channel Sales settings, we have:
- Bill to Tier
- Ship to Tier
If the Sales Order is a direct sale, then
- Reseller = Blank
- Distributor = Blank
- Bill to Tier = ‘End User’
- Ship to Tier = “End User”
This indicates that the sale is done directly to the End User. So whichever Customer is set in the “End User” field in the Sales Order, the same is set in the Bill to Customer field. In a direct sale, End User and Bill to Customer are always the same.
If the Sales Order is a Channel Sale ie. we are selling to the End User via a Reseller, then the settings will change as:
- Distributor = Blank
- Reseller = Customer whose Channel Tier type is Reseller
- Bill to Tier = Reseller
- Ship to Tier = Reseller / End User (shipping can be done to the reseller or to the end user)
NetSuite will then automatically set
- Bill to Customer = Customer whose Channel Tier type is Reseller selected in the Reseller field.
- End User = Can be any customer (either Channel Tier = “End user” or “Reseller”)
In an indirect sale, ‘End user’ and ‘Bill to Customer’ can be different.
Distributor is an optional field and rarely used but can be set to indicate which Customer is the distributor in the transaction. It is mostly used for reporting purpose.