Discover Reusable Clauses
Learning Objectives
After completing this unit, you’ll be able to:
- Explain the Microsoft 365 integration.
- Explain clauses and clause sets.
- Define Document Clause Library.
- Create a reusable clause.
- Create another version of a clause.
Before You Start
Before you start this module, consider completing the following recommended content.
Integration with Microsoft 365 Word
Salesforce Contracts, a digital contract management solution, integrates with Microsoft 365 Word through the Salesforce Contracts Connector for Word add-in. The add-in streamlines the management of contract documents and templates. It also makes it easy to incorporate frequently used sections or clauses into contracts. Overall, the integration enhances contract management processes and supports more robust and flexible contract solutions.
In this module, you learn about reusable clauses and how you can use the add-in to create document templates and contract documents effortlessly. But first, let’s understand what document clauses are.
Document Clauses
Clause
As a sales professional, managing contracts efficiently is crucial to your success. Each contract you handle is composed of clauses. A clause is a text-based building block in a contract with approved legal language or provisions defined for your organization. Clauses typically specify terms and conditions or other legal statements required in contracts.
Imagine you need to include a payment terms clause in a supplier contract. This clause ensures that both parties agree on the payment schedule, methods, and any penalties for late payments.
Clause Types
A clause can be a main clause or an alternate clause. A main clause is the primary clause required for a specific type of document, whereas an alternate clause is a preapproved substitute for the main clause. Alternate clauses give you different language options or cater to certain situations. You can replace the main clause with an alternate clause or an alternate clause with another alternate clause during template design or contract authoring.
For example, when preparing a contract for an international supplier, you use a main clause for standard payment terms but an alternate clause to address currency exchange rates. By selecting the appropriate alternate clause, you ensure the contract is accurate and comprehensive.
Document Clause Set
You group and organize the related clauses based on their variations and versions into a document clause set. A document clause set can have only one main clause, but it can include multiple alternate clauses.
For example, you create a document clause set for supplier contracts. This set includes a main clause for payment terms and alternate clauses for different payment methods, such as wire transfer or credit card. By organizing these clauses into a set, you can easily select the right clauses for each contract.
Document Clause Library
The Document Clause Library in Salesforce is your central repository of prebuilt and preapproved template clauses for use in contracts and document templates. For example, when drafting a new partnership agreement, you can access the Clause Library to find preapproved clauses for payment terms, intellectual property rights, and termination conditions. By using these reusable clauses, you can quickly assemble a comprehensive contract. They speed up the document creation process so you can issue contracts without having to contact the legal team for every deal. You can also create your own new clauses.
With Clause Library, you can:
- Maintain a clause lifecycle that includes stages: draft, in approval, active, and archived.
- Simplify contract review and negotiation.
- Create contract and document templates faster.
- Reuse clauses across contracts and templates.
- Enhance the customer experience.
- Reduce administrative overhead.
- Improve compliance management and reduce financial and legal risks.
And that’s not all. Clause Library provides several useful features.
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Clause Library APIs: Facilitate industry-specific use cases with APIs to fully orchestrate Clause Library functions.
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Clause Set: Create and maintain variations and versions of the same clause.
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Clause Language: Support multiple languages.
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Clause Category for Clause Set: Group related clauses based on business unit, product, or service categories.
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Clause Format: Support unformatted and formatted texts.
Create a Reusable Clause
In this module, we assume you are a sales rep with the proper permissions to manage clauses using Salesforce Contracts. If you’re not a sales rep, that’s OK. Read along to learn how your sales rep would take the steps in a production org. Don't try to follow these steps in your Trailhead Playground. Salesforce Contracts isn't available in the Trailhead Playground.
Consider the example of Cloud Kicks, a company that makes stylish and comfortable sneakers designed and personalized for customers. Behind every pair of custom sneakers are supplier contracts, partnership agreements, and customer data, which need careful management. The company must include a certain payment terms clause in all the contract documents.
Let’s see how Candace Evans, a sales rep at Cloud Kicks, addresses this challenge by creating a reusable, text-based clause to use across contract documents.
To create a clause, navigate to Document Clause Sets from the Salesforce Contracts home page, and select Create Clause Set. Provide necessary details such as the name (Candace names it Payment Terms), default language, usage type, and category. Next, select the document clause set and click +Add Clause to add the main clause with the payment schedule. Specify details like name, language, description, and content. For alternate payment terms, such as early payment discounts, select the original clause and click Add Alternate Clause. Finally, activate the clause so it can be used in contract documents and templates.
Let's explore some of the pages you use to create a clause. Click through the screenshots using the Next and Previous buttons.
Clause Versioning
After activating a clause, you can create a new version of it. Document clause versioning effectively tracks changes in contracts over time and offers a valuable tool for comparing and analyzing clause modifications. To create a clause version, select the created document clause and click Create New Version. Enter the clause description and content, and save it.
For example, Cloud Kicks’s new policy requires an update to the payment terms clause to include electronic payment options. Candace selects the existing clause, creates a new version, and adds the changes. This version is saved in the Draft state until it’s reviewed and approved. After it’s approved, it becomes active, ensuring all future contracts use the updated version of the clause.
In this unit, you explored reusable clauses, clause sets, and alternate versions. Now that you're up to speed on clauses, carry on to the next unit to dive into Salesforce Contracts’s integration with Microsoft 365.