If your contract term gets extended, you can generate agreement fee schedules for the extended term. To accommodate extensions in your contract terms, you can edit the agreement fee and enter the new end date of your contract. On revising the contract end date, new agreement fee schedules are generated for the extended terms and obligation date is extended to reflect the agreement fee extension. 

Conga recommends changing the end date of the Agreement Fee through the standard Salesforce UI.

Generating agreement fee schedules for extended contracts is applicable only for Agreements with RevRec Rule as Percent Complete.

Use Case: Generating agreement fee schedules for an extended term of the contract

Description: This use case describes how to generate agreement fee schedules for the extended term of the contract.

Suppose you are the financial admin of a hardware company and your company has a contract to deliver 100 laptops every month from 1/1/2018 to 6/30/2018. Due to a delay in the delivery, you need to extend the contract end date to 8/31/2018.

Pre-requisites: Generate an agreement and agreement fee schedules for the contract period of 1/1/2018 to 6/30/2018. 

To generate an agreement fee schedule for the extended term,

  1. Navigate to your agreement fee record. The following agreement fee schedules are generated. 

    Agreement Fee Schedule IDPeriod NumberPeriod Date
    AF000111/31/2018
    AF000222/28/2018
    AF000333/31/2018
    AF000444/30/2018
    AF000555/31/2018
    AF000666/30/2018
  2. Click Edit.
  3. Enter your new end date 8/31/2018, in Fixed End Date.
  4. Click Save. 
  5. Navigate back to your agreement fee record. The following 2 new agreement fee schedules are generated. 

    Agreement Fee Schedule IDPeriod NumberPeriod Date
    AF000111/31/2018
    AF000222/28/2018
    AF000333/31/2018
    AF000444/30/2018
    AF000555/31/2018
    AF000666/30/2018
    AF000777/31/2018
    AF000888/31/2018

    You can now enter the Forecast % Complete for the newly created agreement fee schedules to recognize the revenue. 

Terminating an Extended Contract

When you terminate an extended contract, negative revenue is recognized to compensate for the recognized revenue.  To terminate an extended contract, 

  1. Create a Quote/Proposal. 
  2. From the Installed Products, select your asset to terminate. 
  3. Enter the asset end date and click Terminate. 
  4. Activate the order by entering order activation date and ready for billing date. 
  5. Click Save.
  6. Edit the order and enter Ready for Revenue Recognition. Click Save.
  7. Agreement and Agreement Fees are created for the terminated contract.
  8. Activate your agreement by setting Status Category as In Effect and Status as Activated. 

Agreement Fee record is created with a negative Fee Amount. The Fixed Start Date of the agreement fee is set as the date of asset termination + 1. The Fixed End Date is set as the end date of your extended agreement.