diff --git a/apis/clusterinstance.json.adoc b/apis/clusterinstance.json.adoc
index 7ce840056b..aa636d5374 100644
--- a/apis/clusterinstance.json.adoc
+++ b/apis/clusterinstance.json.adoc
@@ -362,7 +362,14 @@ The default value is `None`.|string
 |*diskEncryption* +
 __optional__|Enable or disable disk encryption for the cluster.|object
 |*extraAnnotations* +
-__optional__|Specify additional cluster-level annotations to be applied to the rendered templates.|object
+__optional__|Specify additional cluster-level annotations to be applied to the rendered templates by using the following format: +
+[source,yaml]
+----
+extraAnnotations:
+  ClusterDeployment:
+    myClusterAnnotation: success
+----
+|object
 |*extraLabels* +
 __optional__|Specify additional cluster-level labels to be applied to the rendered templates by using the following format: +
 [source,yaml]
@@ -446,7 +453,14 @@ The following values are supported:
 * `UEFISecureBoot`
 * `legacy`|string
 |*extraAnnotations* +
-__optional__|Specify additional node-level annotations to be applied to the rendered templates.|object
+__optional__|Specify additional node-level annotations to be applied to the rendered templates by using the following format: +
+[source,yaml]
+----
+extraAnnotations:
+  BareMetalHost:
+    myNodeAnnotation: success
+----
+|object
 |*extraLabels* +
 __optional__|Specify additional node-level labels to be applied to the rendered templates. +
 [source,yaml]
diff --git a/mce_acm_integration/siteconfig/siteconfig_installation_templates.adoc b/mce_acm_integration/siteconfig/siteconfig_installation_templates.adoc
index 472a562aaa..fd99ac6319 100644
--- a/mce_acm_integration/siteconfig/siteconfig_installation_templates.adoc
+++ b/mce_acm_integration/siteconfig/siteconfig_installation_templates.adoc
@@ -14,6 +14,7 @@ For more information about installation templates, see the following documentati
 * <<default-templates,Default set of templates>>
 * <<special-template-variables,Special template variables>>
 * <<custom-manifest-order,Customization of the manifests order>>
+* <<extra-annotations-labels,Configuration of additional annotations and labels>>
 
 [#template-functions]
 == Template functions
@@ -140,16 +141,16 @@ metadata:
 
 If the {sco} deletes the resources, `KlusterletAddonConfig` and `ManagedCluster` custom resources are the first to be deleted, while the `AgentClusterInstall` and `ClusterDeployment` custom resources are the last.
 
-[#extra-labels]
-== Configuration of custom labels using the extraLabels field
+[#extra-annotations-labels]
+== Configuration of additional annotations and labels
 
-You can configure additional custom labels to both cluster-level and node-level installation manifests by using the `extraLabels` fields in the `ClusterInstance` API.
-The {sco} applies your custom labels to the manifests that you specify in the `ClusterInstance` custom resource.
+You can configure additional additional annotations and labels to both cluster-level and node-level installation manifests by using the `extraAnnotations` and `extraLabels` fields in the `ClusterInstance` API.
+The {sco} applies your additional annotations and labels to the manifests that you specify in the `ClusterInstance` additional resource.
 
-When creating the labels, you must specify a manifest type to allow the {sco} to apply your custom labels to the appropriate manifest.
-However, the labels are arbitrary and you can set any key and value pairs.
+When creating your additional annotations and labels, you must specify a manifest type to allow the {sco} to apply them to the appropriate manifest.
+However, the annotations and labels are arbitrary and you can set any key and value pairs that are meaningful to your applications.
 
-.Example application of extraLabels
+.Example application of extraAnnotations and extraLabels
 [source,yaml]
 ----
 apiVersion: siteconfig.open-cluster-management.io/v1alpha1
@@ -160,41 +161,59 @@ metadata:
 spec:
   [...]
   clusterName: "example-sno"
+  extraAnnotations: <1>
+    ClusterDeployment:
+      myClusterAnnotation: success
   extraLabels: <1>
     ManagedCluster:
       common: "true"
       group-du: ""
-      sites : "example-sno"
-      vendor: "auto-detect"
   nodes:
     - hostName: "example-sno.example.redhat.com"
       role: "master"
+      extraAnnotations: <2>
+        BareMetalHost:
+          myNodeAnnotation: success
       extraLabels: <2>
         BareMetalHost:
           "testExtraLabel": "success"
 ----
-<1> These are cluster-level labels that the {sco} applies to the the `ManagedCluster` manifest.
-<2> This is a node-level label that the {sco} applies to the `BareMetalHost` manifest.
+<1> These are cluster-level annotations and labels that the {sco} applies to the the `ManagedCluster` and `ClusterDeployment` manifests.
+<2> These are node-level annotations and labels that the {sco} applies to the `BareMetalHost` manifest.
+
+. You can verify that your additional labels are applied by running the following command:
++
+--
+[source,terminal]
+----
+$ oc get managedclusters example-sno -ojsonpath='{.metadata.labels}' | jq
+----
 
 .Example applied labels
 [source,json]
 ----
 {
-  "cluster.open-cluster-management.io/clusterset": "default",
   "common": "true",
   "group-du": "",
-  "name": "example-sno",
-  "siteconfig.open-cluster-management.io/owned-by": "example-sno_example-sno",
-  "sites": "example-sno",
-  "vendor": "auto-detect"
+  ...
 }
 ----
+--
 
+. You can verify that your additional annotations are applied by running the following command:
++
+--
+[source,terminal]
+----
+$ oc get bmh example-sno.example.redhat.com -n example-sno -ojsonpath='{.metadata.annotations}' | jq
+----
+
+.Example applied annotation
 [source,json]
 ----
 {
-  "infraenvs.agent-install.openshift.io": "example-sno",
-  "siteconfig.open-cluster-management.io/owned-by": "example-sno_example-sno",
-  "testExtraLabel": "success"
+  "myNodeAnnotation": "success",
+  ...
 }
-----
\ No newline at end of file
+----
+--
\ No newline at end of file