How should you manage attachments and document versions in CLM?

• A. Attach documents to contracts; use versioning to track changes; maintain version history and compare versions as needed.
• B. Attach only to the first version; never update.
• C. Attachments are stored outside CLM.
• D. Version history is not recorded.

Answer: (A)

Managing attachments and document versions in CLM centers on attaching documents to the contract, maintaining a clear version history, and enabling comparisons between versions when needed. Attaching documents directly to the contract creates a single, auditable repository where all related materials live and are accessible to authorized users, ensuring you don’t lose context or break links. Versioning records every update, preserving previous iterations and showing how a document evolved over time, which is essential for governance, negotiations, and post-execution audits. The ability to compare different versions side by side helps you quickly identify changes, understand their impact, and support informed decision-making.

Attachments only on the first version miss subsequent updates, losing visibility into how the document changed. Storing attachments outside CLM fragments the audit trail and can lead to access and integrity issues. Not recording version history eliminates traceability, making it hard to prove what was changed, when, and by whom.