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Benefits of Using Dynamics 365 for Contract Management

Updated: April 30th, 2025 by Ivan Farafonov

Working with contracts is something that many companies face every day. They allow you to establish rules and obligations for all parties, so they must be transparent, informative, and correct. However, managing all documents and agreements becomes almost impossible as the business grows and the number of clients increases. This is where powerful software comes to the rescue – Contract Management Dynamics 365.

Let’s look at some statistics to understand the popularity of robust contract management systems. According to the latest reports, the global contract management software market was valued at $2.8 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 10.6% from 2025 to 2034, reaching approximately $7.3 billion by 2034! This speaks volumes about the value of integrated tools that help you close deals and manage their entire lifecycle.

In this article, we will explore the Microsoft Dynamics 365 contract management system, consider its features, and determine its benefits for the company.

Briefly about Dynamics 365 Contract Management

Let’s start with a brief definition. Microsoft Dynamics 365 for Contract Management is a solution that combines sales and contract work processes in a single digital environment. The fact is that the basic version of Dynamics 365 serves as a CRM or ERP system and does not have full-fledged functionality for processing contracts. As a result, companies often face a situation where the sales department is not involved in the contract process or is forced to work in a separate system. To solve this problem, you can integrate Dynamics 365 with external contract management platforms, like Dock 365.

After such integration, creating, approving, signing, and storing contracts takes place directly in CRM. Thus, the seller can start the contract immediately after reaching an agreement with the client, without leaving the system. In addition, various departments of the company — sales, legal, and administration — can work together on contracts online, so you reduce the time for approval.

Here’s what it looks like visually:

Microsoft Dynamics Contract Management - Key Features

Microsoft Dynamics CRM contract management offers many modern features that make your work fast and efficient. You can create documents, edit them jointly by several departments, and approve the final version. Let’s take a look at a few key tools:

Contract Generation & Approvals

This feature allows you to create contracts directly in the system. Thanks to the automatic filling of data from CRM, they are generated almost instantly! Once created, the document can be sent to the responsible persons for approval. All stages, from draft to final approval, take place in one environment, so you can easily track who made changes or approved the document and when.

Customizable Contract Template

You get access to a database of standard contract templates. They contain standard wording, variable fields (e.g., customer name, date, amount, etc.), and document structure. It saves time and avoids mistakes, as you don’t have to create a new contract from scratch every time.

Electronic Signatures

After the final approval, the contract can be signed using the integrated electronic signature function. This way, you avoid paper documents and speed up the contracting process. Electronic signatures are legally binding, and the system keeps a log of all signing actions.

Two-Way Data Synchronization

All data related to the contract is automatically updated in both the contract management module and the CRM system. For example, if the terms or contact person are changed in the contract, these changes are immediately reflected in the customer record.

Integration with Other Dynamics 365 Modules

Contract management is linked to sales, finance, customer service, and other modules. Thus, you can configure contract management Dynamics 365 Finance and Operations to generate payment accruals after the conclusion of the agreement.

Let’s implement all the features of Dynamics CRM contract management with our services!

Benefits Your Business Gets with a Contract Management System

Contract management in Dynamics CRM provides many benefits for your business. The system speeds up the entire process of working with contracts and makes it straightforward for both your employees and customers. As a result, you increase the accuracy of contracts and manage all the details quickly and efficiently. This is sure to drive your company’s growth and development.

Here are the key benefits you get:

Full Visibility of the Contract Process

You no longer need to guess at the stage of a contract, as all stages, from creation to signing, are displayed in a single interface with clear statuses, responsible persons, and deadlines. This allows you to quickly intervene in the process if there are delays and manage risks at an early stage, instead of solving problems after they arise.

Fast Scaling

When a business grows, the number of contracts increases many times over. Without a centralized system, this leads to chaos: more paperwork, more people to control, more mistakes. Dynamics 365 allows you to deal with many contracts without expanding your team. Thanks to templates, automatic checks, and a single database, you maintain the same speed and quality of work.

Improved Accuracy and No Human Errors

When contracts are created manually or copied from previous documents, errors are inevitable. This includes incorrect dates, inaccurate terms and conditions, outdated details, or even redundant or missing clauses. An integrated solution based on Dynamics 365 significantly reduces this risk by automatically populating fields from CRM data, checking for consistency, and using validated templates.

Thorough Analytics

Integration of contracts into D365 allows you to analyze them rather than just store documents. Thus, you get detailed analytics: what types of contracts are concluded most often, how long it takes to approve them, which counterparties are the most problematic, and what terms lead to disputes. This opens up a new level of strategic control: not just reacting to situations, but predicting them and changing approaches to working with clients.

Centralized Legal Knowledge and Practices

Instead of each division creating contracts “in its own way,” the company forms a single legal logic. All templates, terms, conditions, wording, and exceptions are recorded and standardized in the system. This reduces legal risks, eliminates ambiguities, and creates stability in contractual work.

Industries That Need Contract Management Software

Many industries deal with deals and contracts daily. In such a market, accuracy and efficiency are a priority to continue cooperation with customers and stay ahead of the competition. This is exactly what we offer with the introduction of D365. Here is a list of sectors for which it works perfectly:

How Can HireDynamicsDevelopers Help You?

As you can see, Dynamics 365 does a really good job of contract management and eliminates a lot of manual work. However, to make everything work for you, you need to set up all the tools carefully and efficiently. How can you configure all the features and adapt the work environment for your team without spending a lot of time and hassle? The solution is simple: Hire Dynamics consultants!

That’s where Hire Dynamics Developers comes in. The thing is, we specialize in finding and hiring specialists for your projects. We have a large database of experts, so we are ready to cover any needs with ease. Thus, our services are a complete replacement for an in-house HR department, because we go through all the stages of recruiting with you, from resume scrubbing to onboarding. Thus, you get fruitful cooperation and a well-configured platform that works for you.

Finn V.

– Dynamics CRM Consultant

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Dorothee H.

– D365 CRM Developer

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Elodie A.

– Microsoft Dynamics 365 Consultant with Finance Background

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Franka M.

– Dynamics 365 Supply Chain Architect

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Robert M.

– Senior Microsoft Dynamics 365 Developer

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Mario H.

– Dynamics 365 CRM Development Expert

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Conclusion

To sum up, Microsoft Dynamics 365 contract management is a solid tool for companies to deal with contracts. It’s simple to use and helps keep everything organized. Whether you’re working on easy sales contracts or more complicated agreements with multiple vendors, Dynamics 365 makes sure your processes run smoothly.

If you want to get the most out of your contract management, consider teaming up with experienced consultants. They can help you use the platform effectively and improve how you handle contracts overall.

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By Ivan Farafonov

I'm passionate about sharing my extensive experience in Microsoft and Dynamics 365 technologies. Beyond the technical realm, I excel in recruiting and building high-performing teams, ensuring every project is executed with precision and collaboration. As a contributor to HireDynamicsDevelopers, I share my insights on maximizing Dynamics 365’s potential, blending technical expertise with strategic team development. My passion lies in both technology and fostering talented professionals to achieve outstanding results.