Considerations for Contract Amendments and Adjusted Invoices
A contract administrator sometimes retroactively amends contracts that are used for billing. When this happens, the project billing specialist must review previously generated invoices to see if any further action is required.
Contract Amendments with No Impact on Invoice Amount
Some retroactive contract amendments don't affect the invoice amount. When such amendments are activated, previously processed transactions are not adjusted automatically. If you want an unreleased invoice to reflect the amended contract values, you must generate the invoice again, with the delete draft, approved, and approval rejected options selected. Generating the invoice again automatically deletes the previous invoice and creates a new invoice, with amended contract values from the currently active contract version.
If you have already released the invoice, cancel the existing invoice and generate a new invoice to reflect the amended contract values.
You can choose to create a new version each time you amend a contract. Versioning provides a historical record of the changes made to a contract and lets you abandon the changes made and revert to the previous version. Versioning also lets you generate invoices and recognize revenue from the previously active version when the contract is under amendment.
Contract Amendments that Impact Invoice Amount
Some retroactive contract amendments impact the amount of an existing invoice. When such amendments are activated, previously processed transactions with a transaction date on or after the amendment effective date are automatically marked for adjustment. The next time you generate an invoice for the contract, the invoice contains the adjusted amounts and all contract attributes from the currently active contract version.