Contract Cotermination

Definition

Cotermination is renewing lines from multiple sales agreements that have different effective end dates at the same time. You can coterminate lines only from Executed or Active contracts. With cotermination, a single invoice is generated for renewing the lines that may originally have different active terms.

Conditions for cotermination

The following conditions are applicable for coterminating contracts:

• Coterminating lines must be of the same currency.
• Cotermination date of the new renewal quote contract must be on or after the last term end date of all lines in the coterminated set of lines.

Internal contact

The user who coterminates the lines becomes the primary internal contact of the new quote.

Originating contract

The internal user can select the original contract or the base contract as the originating contract for the renewal quote. The owning organization of the renewal quote is the organization of the originating contract. Additional settings for the renewal quote are also dependent on the originating contract.

Relationships

Relationships between the new renewal quote, originating contract, and the contracts from which lines are renewed are created when lines are coterminated.