Contract Workflow

The following diagram shows the different states of a contract.

Workflow diagram showing the different states through which a contract (sales order) may pass.

The contract’s status is shown in the Status field on the contract record. For information about contract fields, see Contract Fields.

Non-perpetual items have the same status as the contract where they belong, while perpetual items always have a status of Active. The contract item’s status is shown in the Contract Item Status field on the contract item record.

The following table describes the contract lifecycle. For information about what processes or actions are applicable for each contract status, see Managing Contracts.

Contract Status	Action ID	Description	Automated and Manual Processes That Affect Contract Status
Pending	1	When a contract record is created, its initial status is set to Pending. A contract remains in this state until its contract items are generated. For information about creating contracts, see Creating a New Contract.	Contracts are automatically generated by the R07 script (R07-MR: Create New Contracts) for new sales orders that match the Sales Order Status to Create Contract preference. To manually generate a contract for a new sales order, click the Create Contract button on the transaction record. For renewals, a renewal contract is automatically generated if the renewal transaction is a sales order, or when a renewal opportunity or estimate is converted to a sales order.
Active	2	When contract items are generated for the contract, its status changes from Pending to Active.	Contract items are generated by the R03 script (R03-SS: Create Contract Items hrly).
Renewal Generated	3	When a renewal transaction is generated for the contract, its status changes from Active to Renewal Generated. A contract remains in this state until contract items are generated for the renewal contract. A renewal contract is automatically generated with an initial status of Pending if the renewal transaction is a sales order, or when a renewal quote or opportunity is converted to a sales order. The renewal contract’s status remains in Pending until its contract items are generated. For information about renewing contracts, see Renewing a Contract.	Renewal transactions are generated by the R05 script (R05-SS: Create Renewals nightly) for active contracts with a target renewal date that is on or before the current date. To manually generate a renewal transaction, click the Renew Now button on the contract record. You can also perform batch renewals by going to Contract Renewals > Renewals Automation > Renew Now: Batch Process.
Renewal Rejected	4	When a contract’s renewal transaction is rejected, its status changes from Renewal Generated to Renewal Rejected. You can reject a renewal transaction (opportunity, estimate, or sales order in Pending Approval status) if contract items are not yet generated for the renewal contract (that is, renewal contract is still in Pending status). For more information, see Rejecting a Renewal Transaction. When a renewal transaction is rejected, the status of the renewal contract changes from Pending to Canceled.	To reject a renewal transaction, click the Reject Renewal button on the transaction record.
5	When you generate a new renewal transaction for a contract record with a status of Renewal Rejected, its status changes back to Renewal Generated.	To generate a new renewal transaction for a contract with a Renewal Rejected status, click the Renew Now button on the contract record.
Renewal Processed	6	When contract items are generated for the renewal contract, the preceding contract’s status changes from Renewal Generated to Renewal Processed. Meanwhile, the renewal contract’s status changes from Pending to Active after its contract items are generated.	Contract items are generated by the R03 script (R03-SS: Create Contract Items hrly) for renewal contracts.
Canceled	7	When a contract with a status of Pending, Active, or Renewal Rejected is canceled, its status changes to Canceled. Also, when a renewal transaction is rejected, the renewal contract’s status changes from Pending to Canceled. Canceled contracts will not be processed for contract item creation, renewal, upsell, or downsell. For information about canceling contracts, see Canceling a Contract.	To cancel a contract, click Cancel Contract button on the contract record.
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Closed	10	When you run the script that closes contracts, it searches for expired contracts and changes its status from Active to Closed. Expired contracts are contracts with a current status of Active and an end date that is before the current date. For information about closing expired contracts, see Closing Expired Contracts.	To set the status of expired contracts to Closed, manually run the R08 script (SWV CR MR R08 Close Contracts).

Contract Status

Action ID

Description

Automated and Manual Processes That Affect Contract Status

Pending

When a contract record is created, its initial status is set to Pending. A contract remains in this state until its contract items are generated.

For information about creating contracts, see Creating a New Contract.

Contracts are automatically generated by the R07 script (R07-MR: Create New Contracts) for new sales orders that match the Sales Order Status to Create Contract preference.

To manually generate a contract for a new sales order, click the Create Contract button on the transaction record.

For renewals, a renewal contract is automatically generated if the renewal transaction is a sales order, or when a renewal opportunity or estimate is converted to a sales order.

Active

When contract items are generated for the contract, its status changes from Pending to Active.

Contract items are generated by the R03 script (R03-SS: Create Contract Items hrly).

Renewal Generated

When a renewal transaction is generated for the contract, its status changes from Active to Renewal Generated. A contract remains in this state until contract items are generated for the renewal contract.

A renewal contract is automatically generated with an initial status of Pending if the renewal transaction is a sales order, or when a renewal quote or opportunity is converted to a sales order. The renewal contract’s status remains in Pending until its contract items are generated.

For information about renewing contracts, see Renewing a Contract.

Renewal transactions are generated by the R05 script (R05-SS: Create Renewals nightly) for active contracts with a target renewal date that is on or before the current date.

To manually generate a renewal transaction, click the Renew Now button on the contract record. You can also perform batch renewals by going to Contract Renewals > Renewals Automation > Renew Now: Batch Process.

Renewal Rejected

When a contract’s renewal transaction is rejected, its status changes from Renewal Generated to Renewal Rejected.

You can reject a renewal transaction (opportunity, estimate, or sales order in Pending Approval status) if contract items are not yet generated for the renewal contract (that is, renewal contract is still in Pending status). For more information, see Rejecting a Renewal Transaction.

When a renewal transaction is rejected, the status of the renewal contract changes from Pending to Canceled.

To reject a renewal transaction, click the Reject Renewal button on the transaction record.

When you generate a new renewal transaction for a contract record with a status of Renewal Rejected, its status changes back to Renewal Generated.

To generate a new renewal transaction for a contract with a Renewal Rejected status, click the Renew Now button on the contract record.

Renewal Processed

When contract items are generated for the renewal contract, the preceding contract’s status changes from Renewal Generated to Renewal Processed.

Meanwhile, the renewal contract’s status changes from Pending to Active after its contract items are generated.

Contract items are generated by the R03 script (R03-SS: Create Contract Items hrly) for renewal contracts.

Canceled

When a contract with a status of Pending, Active, or Renewal Rejected is canceled, its status changes to Canceled. Also, when a renewal transaction is rejected, the renewal contract’s status changes from Pending to Canceled.

Canceled contracts will not be processed for contract item creation, renewal, upsell, or downsell. For information about canceling contracts, see Canceling a Contract.

To cancel a contract, click Cancel Contract button on the contract record.

Closed

When you run the script that closes contracts, it searches for expired contracts and changes its status from Active to Closed.

Expired contracts are contracts with a current status of Active and an end date that is before the current date. For information about closing expired contracts, see Closing Expired Contracts.

To set the status of expired contracts to Closed, manually run the R08 script (SWV CR MR R08 Close Contracts).

General Notices