Entitlement

An entitlement is the active, accepted contract that proves a customer has purchased your product and is entitled to use it.

Overview

In cloud marketplaces, an entitlement (also known as an agreement) represents an active, accepted contract. While a private offer defines the terms you propose to a buyer, the entitlement is what becomes active after acceptance and drives billing and revenue.

Use the entitlement record whenever you need to know whether a deal is active, when the contract ends, or when you will get paid.

How an entitlement is created

Entitlements are never created manually in Suger. They are generated automatically whenever a customer successfully purchases or accepts an offer through a cloud marketplace. This can happen through either a public offer or a private offer.

Public offer flow

1. Marketplace listing published — Your product is available as a public marketplace listing.
2. Buyer purchases — A buyer self-serves and subscribes directly through the marketplace.
3. Marketplace processing — The cloud marketplace confirms the transaction and activates the agreement.
4. Active entitlement generated — Suger automatically creates an active entitlement in your console and CRM.

Private offer flow

1. Private offer sent — Your team generates and extends a private offer to the buyer’s cloud account.
2. Buyer accepts — The buyer logs into their marketplace portal and accepts the offer.
3. Marketplace processing — The cloud marketplace confirms the transaction and validates the payment terms.
4. Active entitlement generated — Suger automatically creates an active entitlement in your console and CRM.

How teams use entitlements

Each entitlement is linked to a CRM opportunity, private offer, product, and buyer account, making it the shared record across Sales, Customer Success, and Finance.

• Sales tracking — Sales teams use entitlements to confirm when a deal is closed. When a buyer accepts a private offer, an entitlement is created and the CRM opportunity is automatically marked as Closed Won.
• Customer Success provisioning — Customer Success teams use entitlements to understand what the customer purchased and when it becomes active.
• Finance reconciliation — Finance teams use entitlements to connect revenue back to the original deal.

Terminate an entitlement

You can schedule a cancellation of an entitlement. There are three cancellation types supported:

• Immediate: The entitlement will be terminated immediately.
• End of Term: The entitlement will be terminated at the end of current term.
• Specific Date: The entitlement will be terminated at a specific date.

When an entitlement terminates, Suger will automatically calculate charges for any outstanding usage and generate the final invoice.

For commitment charging terms:

• If the payment schedule is postpay, a final invoice will be generated with the prorated days.
• If the payment schedule is prepay, a refund will be made for the unused period.

Apply an Addon

You can apply an addon to an entitlement if you need to charge the customer an additional amount.

Alert before the end date of an entitlement

Sellers can configure the alertDaysBeforeEnd field in the entitlement configuration to send an alert to both the seller and the customer before the end date of an entitlement. The alertDaysBeforeEnd field can be set to 15 or 45 days.

Auto-renew an entitlement

Sellers can configure the autoRenew field in the entitlement configuration to automatically renew the entitlement at the end date. The autoRenew field can be set to either true or false.

• If set to true, the entitlement will be automatically renewed at the end date.
• If set to false, the entitlement will not be automatically renewed.