Contract Termination
Executed, on-hold, and active contracts can be terminated. Executed amendments of an on-hold contract can also be terminated. However, amendments in the Draft and In Negotiation status when terminated are changed to the Withdrawn status.
A contract or amendment is closed when terminated. No further action can be taken on terminated contracts. Terminated contracts cannot be amended or renewed. Terminated contracts also cannot expire because they are discarded.
Termination result
When a contract is terminated, a notification is sent to the specified users if the system event is configured.
Contract termination can occur immediately or on a schedule. When a contract is terminated with immediate effect, the status changes to Terminated. No more notifications about the contract are sent.
If the contract is terminated on a schedule, the status of the contract changes to Termination Pending. During this state, notifications are sent as required. The contract may also be amended until the actual termination. However, a Termination Pending contract cannot be renewed.
A contract with the Termination Pending or Terminated status can be restored to its earlier status.
Conditions for termination
- The scheduled effective date of termination is or before the effective end date of the contract.
- If the scheduled effective date of termination is after the current date, the contract is put in the queue for termination. On the termination date, the status changes to Terminated when the contract termination batch process is run.
- If the scheduled effective date of termination is the current date, the contract is immediately terminated.