Procurement Contract renewals and termination agreements

Business Applications Procurement
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How do I handle automatic renewals and termination rules for Procurement Contracts?

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In the Renewal and Termination tab of a Procurement Contract, you can configure rules for automatic contract renewal. These settings include the Renewal Type, Renewal Term, and Renewal Term Duration, which together define how the system handles the contract once it reaches its expiration date.

These fields can only be edited when the contract is in a non-active state - specifically, in either the New or Change Contract workflow status.

To enable automatic renewal, select ‘Automatic Renewal’ in the Renewal Type field. Then, use the Renewal Term and Renewal Term Duration fields to define the length of the renewed contract. For example, setting the Renewal Term to 6 and the Renewal Term Duration to ‘Months’ means that upon expiration, the contract will automatically generate a new version with a 6-month effective period. Optionally, you can specify whether or not the new contract will automatically activate by using the Automatically Open Renewed Contract field.

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You can check out the “Automatic Renewals and Termination Rules” section on the “Procurement Contracts” topic in the Nextworld Help platform if you need any more information on this!

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