Question & Answer
Question
Effective and Expiration Dates for Contracts
Answer
Effective and Expiration Dates for Contracts
This topic provides rules for setting the effective date and expirationdate when you propose contract changes.
The contract level hierarchy affects the dates you assign to contractssections and lanes.
The above diagram displays the following staggered effective andexpiration dates:
| Level | Effective Date | Expiration Date |
|---|---|---|
| Contract | 30 March 2012 | 30 March 2017 |
| Section | 30 May 2012 | 30 July 2015 |
| Lane | 30 July 2012 | 30 July 2013 |
The dashed lines represent the earliest effective date and latestexpiration date for each level in the contract hierarchy:
- The effective date and expiration date for each section must fallwithin the dates for the contract.
- The effective and expiration date for each lane must fall withinthe dates for the contract section.
Sterling TMS providesinformational messages when you incorrectly enter any proposed effectiveor expiration dates.
Effective Dates
The following rules applyto defining effective dates in contracts:
- When you propose a new section for a contract the effective dateof the section cannot be earlier than the effective date of the contract.It can be the same effective date as the contract or it can be a laterdate.
- When you propose a new rating lane for a section the effectivedate of the lane must be the same date or later than the effectivedate of the section.
- Once a proposal is accepted and the changes take effect you cannotpropose a change to an effective date. You can only propose changesto the expiration date.
Expiration Dates
The following rules applyto defining expiration dates in contracts:
- You can propose a new contract section or propose a change toan existing section. The expiration date cannot be later than theexpiration date of the contract.
- You can propose a new rating lane or propose a change to an existinglane. The expiration date cannot be later than the expiration dateof the contract section.
- A contract might not have an expiration date. This is known asan evergreen contract. You can propose an end to the contractby entering an expiration date. If a contract has an expiration dateyou can propose an evergreen contract by selecting the dashes in theappropriate date lists.
- You can extend a contract by changing the expiration date to alater date. You must manually propose updates to the expiration dateof the sections you want to extend. The section expiration dates arenot automatically extended.
- If you extend a section expiration date you must manually proposeupdates to the expiration date of the rating lanes you want to extendin the section. The lane expiration dates are not automatically extended.
- You can propose a change to make a contract expire earlier. Youdo not have to change the expiration dates for the sections and lanesin the contract. As soon as the contract expires the sections andlanes are no longer available for use.
- You can propose a change to make a section expire earlier. Youdo not have to change the expiration dates for the lanes in the section.As soon as the section expires the lanes are no longer availablefor use.
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Document Information
Modified date:
08 December 2018
UID
ibm10753793