# Contract creation, contract pricing and cotermination

*Revenue Management Consultant Study Guide · Contracts and Orders · Last updated October 29, 2026 · https://www.certifyforce.com/study-guide/revenue-management-consultant/contracts-and-orders/contract-creation-contract-pricing-and-cotermination*

How Revenue Management contracts are created from quotes, orders, flows or by hand, how contract item prices, tiers and cumulative pricing reach later quotes, and how cotermination and contract renewal terms align subscription dates.

- Certification: Salesforce Revenue Management Consultant
- Exam section: Contracts and Orders
- Study guide: https://www.certifyforce.com/study-guide/revenue-management-consultant

**Official exam objective:**

> Given a scenario, configure Salesforce Contracts to meet business requirements.

## What the exam expects

- Choose a contract-creation path (New Contract button, record-triggered flow, manual contract) and say what each carries over.
- Explain where contract item prices come from and how they reach later quotes, amendments and renewals.
- Configure the Contract Pricing Schedule component, volume tiers, cumulative pricing and Customize Contract Pricing.
- Link assets to contracts automatically or by hand.
- Turn on cotermination and predict what it locks and blocks.

Key terms: **contract item price** (a negotiated price or discount for one product and selling model); **adjustment tier** (a quantity band with its own discount); **application usage assignment** (the RevenueLifecycleManagement tag a Revenue Management contract needs); **asset contract relationship** (links an asset to its governing contract); **cotermination** (subscription end dates locked to the contract end date).

## Key facts

| Fact | Detail | Source |
|---|---|---|
| New Contract vs Create Contract | New Contract inherits account and start date; Create Contract makes a basic contract | [New Contract Button](https://help.salesforce.com/s/articleView?id=sf.qocal_create_contracts_from_a_quote_or_order.htm&language=en_US&type=5) |
| Orders and contracts | Contracts link only to draft orders | [New Contract Button](https://help.salesforce.com/s/articleView?id=sf.qocal_create_contracts_from_a_quote_or_order.htm&language=en_US&type=5) |
| Contract item price source | Quote line items only, never order products | [Contract Pricing Flow](https://help.salesforce.com/s/articleView?id=ind.qocal_quote_to_contract_flow.htm&language=en_US&type=5) |
| Supported usage type | RevenueLifecycleManagement is the only one for Revenue Cloud contracts | [Usage Assignment](https://help.salesforce.com/s/articleView?id=ind.qocal_create_contract_revenue_cloud.htm&language=en_US&type=5) |
| Contract pricing permission | Salesforce Pricing Design Time User | [Contract Prices](https://help.salesforce.com/s/articleView?id=ind.qocal_create_contract_prices_or_discounts_manually.htm&language=en_US&type=5) |
| Tier upper bound | Priced exclusively at run time | [Tiered Pricing](https://help.salesforce.com/s/articleView?id=ind.qocal_use_tiered_volume_and_pricing_in_contract_pricing.htm&language=en_US&type=5) |
| After activating a priced contract | Refresh the contract pricing decision table | [Quote from Contract](https://help.salesforce.com/s/articleView?id=ind.qocal_start_quote_in_contract_to_use_contract_pricing.htm&language=en_US&type=5) |
| Aggregation Strategy blank | Each line is priced individually | [Cumulative Pricing](https://help.salesforce.com/s/articleView?id=ind.qocal_cumulative_quantity_contract_pricing.htm&language=en_US&type=5) |
| Cotermed contract and ramps | Ramped products can't be added | [Cotermination Limits](https://help.salesforce.com/s/articleView?id=ind.qocal_coterminate_contract_important_considerations.htm&language=en_US&type=5) |

## Check yourself

- Which decision table should the Volume Discount element use for contract tiers?
- Why should reps avoid changing the contract ID on a quote or order?
- Which matching records does cumulative pricing aggregate?
- When does an amended line on a cotermed contract take a new end date?

## Sources

- [Add a New Contract Button](https://help.salesforce.com/s/articleView?id=sf.qocal_create_contracts_from_a_quote_or_order.htm&language=en_US&type=5)
- [Map a Flow to Capture Quote Line Pricing on Contracts](https://help.salesforce.com/s/articleView?id=ind.qocal_quote_to_contract_flow.htm&language=en_US&type=5)
- [Automate Contract Creation from Quotes and Orders](https://help.salesforce.com/s/articleView?id=ind.qocal_create_contracts_using_a_flow.htm&language=en_US&type=5)
- [Create a Contract and Application Usage Assignment](https://help.salesforce.com/s/articleView?id=ind.qocal_create_contract_revenue_cloud.htm&language=en_US&type=5)
- [Create Asset Contract Relationships](https://help.salesforce.com/s/articleView?id=ind.qocal_create_asset_contract_relationship.htm&language=en_US&type=5)
- [Manage Contract Prices or Discounts Manually](https://help.salesforce.com/s/articleView?id=ind.qocal_create_contract_prices_or_discounts_manually.htm&language=en_US&type=5)
- [Add the Contract Pricing Schedule Component to Lightning Record Pages](https://help.salesforce.com/s/articleView?id=ind.qocal_add_the_contract_pricing_schedule_component_in_revenue_cloud.htm&language=en_US&type=5)
- [Set Up Tiered Contract Pricing](https://help.salesforce.com/s/articleView?id=ind.qocal_use_tiered_volume_and_pricing_in_contract_pricing.htm&language=en_US&type=5)
- [Calculate Cumulative Quantity Pricing for Contractual Discounts](https://help.salesforce.com/s/articleView?id=ind.qocal_cumulative_quantity_contract_pricing.htm&language=en_US&type=5)
- [Set Up Contract Pricing Extensibility](https://help.salesforce.com/s/articleView?id=ind.qocal_contract_pricing_extensibility.htm&language=en_US&type=5)
- [Generate a Quote or Order from a Contract](https://help.salesforce.com/s/articleView?id=ind.qocal_start_quote_in_contract_to_use_contract_pricing.htm&language=en_US&type=5)
- [Coterminate Subscription Assets with Contract End Dates](https://help.salesforce.com/s/articleView?id=ind.qocal_coterminate_with_contract_end_date.htm&language=en_US&type=5)
- [Considerations for Contract Cotermination](https://help.salesforce.com/s/articleView?id=ind.qocal_coterminate_contract_important_considerations.htm&language=en_US&type=5)
- [Apply Contract Pricing When Amending or Renewing](https://help.salesforce.com/s/articleView?id=ind.qocal_amend_and_renew_assets_with_contract_pricing.htm&language=en_US&type=5)
- [Contracts in Revenue Management](https://help.salesforce.com/s/articleView?id=sf.qocal_manage_contracts_in_revenue_lifecycle_management.htm&language=en_US&type=5)

## About the full unit

The "Core concepts", "Exam traps" and "Worked scenario" sections of this unit, its 17 linked practice questions, and unlimited timed mock exams are included with the Revenue Management Consultant pack (USD $19): https://www.certifyforce.com/practice-exams