About Agreement Phases

The contract process goes through typical sequences of events, or phases. The following phases encompass the various options for managing the Agreement life cycle:

• Amendment
• Renewal
• Termination
• Expire

For details, refer to Status Categories and Statuses.

Amendment

During the term of the agreement you may need to modify the contract. For example, the language or terms of the contract. The Amend action is used for this functionality. The Amend action creates a new version of the agreement record. The new, amended record shares the same base agreement number as the original with the decimal point incremented by one. All the data from the original version is copied into the new version. The new version can then go through the same agreement process as described above. On execution of the amendment, the status category of the original version of the agreement is changed to Amended from In Effect.

Renewal

Towards the end of the term of the agreement, you may want to renew the agreement for a further period of time. In such a scenario, the Renew action would create a new version of the agreement. The agreement can then be executed after updating the term of the agreement. You can quickly identify contract renewal candidates, allowing plenty of time to act, and create new contract drafts based on the previous contract. You may refer Clearing Cloned Agreement Fields Values to understand how to control which fields to clone during renewal process.

Termination

If you decide to terminate or end a contract, you can click on the Terminate action. The agreement status is changed to Terminated.

Expiration

After the agreement term ends, use the Expire action to mark the agreement as expired.