How is versioning managed for templates and documents in CLM?

• A. Versions are overwritten with each edit; history is not kept.
• B. Only templates have versioning; documents do not.
• C. Versioning is manual; users must create a new version explicitly.
• D. Each update creates a new version; contracts reference the version used at creation; history and diffs are preserved.

Answer: (D)

Versioning in CLM is automatic and keeps a complete trail: every edit to a template or document results in a new version, with the history and what changed preserved. When a contract is created from a template, the contract records the exact version of that template used at creation, so later changes to the template don’t alter the contract’s baseline. Both templates and documents therefore have version histories and diffs you can review to see how content evolved over time.

For templates, new versions are created as edits are made, ensuring you can reference or roll back to a prior template state. For documents, updates that occur within the contract context also produce new document versions while maintaining the link to the version of the content that was in use when the contract was executed. This structure provides a reliable audit trail and prevents loss of historical information.