A contract contains Agreement Line Items, Asset Line Items or Order Line Items. In this flow, you follow the normal Contract Lifecycle flow of creating a Contract, presenting it to your customer and finalizing the Contract. Here, the Asset Line Items are created when the Sales Rep finalizes and activates a Contract. CPQ now provides the ability to synchronize the changes in Assets with the changes in a Contract. The changes you make inside a Contract (such as a change in Contract End Date) will be reflected in the Assets contained in that Contract. Similarly, when you perform actions on your purchased Assets (such as changing the Quantity of an Asset), these changes will be reflected in the Contract.

See Configuring the Custom Settings for Asset Management Flow to learn how to configure the above flows.