Contract Actions and Status Changes

A contract typically moves through a variety of states throughout its life cycle, from initial drafting to negotiation to active management and eventually to contract closeout. A contract status indicates where a contract is in its life cycle, and also determines what actions and operations are permitted for the contract.

Some of the actions available for a contract have no effect on the status of the contract. These actions are:

• Preview: Displays contract with terms and conditions in the PDF format.

  Note: The PDF generated from the Preview action only supports the portrait layout. The application truncates the tables sourced from Microsoft Word that created in the landscape layout when you generate the PDF preview.

• Validate: Displays errors and warnings, if any.

• Duplicate: Creates a new contract in Draft status with a new number for which you can select to retain dates, primary and other party information, contract terms, notes, and contract line information from the original contract.

• Save as Contract Template: Creates a new contract template in Draft status with the same attributes as that of the contract.

• Delete: Removes the contract.

• Edit Contract in Wizard: Enables you to use the Wizard to upload documents and enter contract details such as contract terms template, variable values, and answers to questions before approving and signing the contract. This action is therefore available only in Draft and Under Amendment contracts.

• Autocreate Fulfillment Lines: Creates fulfillment lines for buy intent contracts.

• Track Completion: For sell intent contracts with lines, tracks percent complete for the project at line level.

Note: Contract statuses are predefined and you cannot define new statuses. However, you can define user statuses and their transitions and use them, for example, to pass the contract from one team to another for review before submitting the contract for approval.

The following table describes the available contract statuses and lists those permitted actions for each status that cause a change in contract status:

Status	Description	Available Actions and Resulting Statuses
Draft	The initial status of a contract	Cancel Resulting status: Canceled Submit for Approval Resulting status: Pending approval Create New Version Resulting status: Draft When a contract is in Draft status and a new version of it is created, this new version will also be in Draft status. Note: When you try to activate a renewed Contract that is in 'Draft' status, the application checks if all the components of the contract are valid. If there's an inactive asset, you can't activate the contract. In such cases, delete the invalid asset from the renewed Draft Contract or set the Asset line Status as 'Cancel' and proceed. Another option is to remove the end date of the asset and activate the contract.
Canceled	The status of a contract changes to Canceled when the draft is canceled.	There is no action available that changes the status of the contract.
Pending approval	The status of a contract changes to Pending approval when it is submitted for internal approval.	Stop Approval Resulting Status: Draft The contract is withdrawn from approval. You can now make corrections to the contract and resubmit it for approval. Stop Approval Resulting Status: Under amendment The current contract is in Under amendment status if it has an earlier active version. Approve Resulting status: Active If, based on the contract type, signature is not required for acceptance, and all approvers have approved. Approve Resulting status: Pending signature If, based on the contract type, signature is required for acceptance. Approve Resulting status: Hold When a contract is approved, if there is an existing Hold on it with Hold date later than the system date, its status changes to Hold. Reject Resulting status: Draft When one or more approvers do not approve the contract. Reject Resulting status: Under amendment This status results when one or more approvers do not approve the contract and the contract has a previous active version. Note: The Approve and Reject actions are available from the approval workflow notification.
Pending signature	The status of a contract changes to Pending signature when it is internally approved by all approvers but is pending customer or supplier acceptance. Acceptance can be by manual or electronic signature.	Sign Contract Resulting status: Active If manual signature is required for acceptance, then clicking on this action displays the Accept Contract page where designated signers enter their name and date of acceptance. Sign Contract Resulting status: Sent for signature If electronic signature is required for acceptance, then this action displays the integrated Sign Contract page. On this page, the sender must click on Send to send the contract for electronic signature to the designated signers. Sign Contract Resulting status: Hold When a contract is accepted, if there is an existing Hold on it with Hold date later than system date, its status changes to Hold. Sign Contract Resulting status: Expired Sign Contract can go straight to Expired if the end date has been reached. Create New Version Resulting status: Draft When a contract is pending signature, if a new version of it is created, this new version is in Draft status. Resulting status: Under amendment If the original contract pending signature was under amendment, the new version will also be in Under amendment status. Cancel Resulting status: Canceled
Sent for signature	The status of a contract changes to Sent for signature when the contract is sent for signature using the integrated electronic signature solution. Run the Track Electronic Signature Status process to activate the contract after all signers have signed the contract.	Manage Signatures No resulting status If the sender corrects the envelope and resends it for signature. Resulting status: Pending signature If the signer declines to sign or the sender voids the envelope. Resulting status: Active If all the signers sign the contract.
Active	If the contract does not require signature for acceptance, then the status of the contract changes to Active when it is approved by all the approvers. If the contract requires signature for acceptance, then the status of the contract changes to Active only when it is approved by all the approvers and signed by all the signers.	Amend Resulting status: Under amendment Enables you to make changes to the contract and resubmit it for approval. Apply Hold Resulting status: Hold Close (Terminate) Resulting status: Closed This contract is no longer available except from contract history.
Hold	The status of a contract changes to Hold when a hold is applied. The Update Contract Status process will ignore contracts or contract lines on hold and will not change them to the Expired status.	Amend Resulting status: Under amendment Enables you to make changes to the contract and resubmit it for approval. Remove Hold Resulting status: Active if prior to end date. otherwise the status will be Expired. Close (Terminate) Resulting status: Closed This contract is no longer available except from contract history.
Under amendment	The status of a contract changes to Under amendment when it is amended.	Submit for Approval Resulting status: Pending approval Revert Resulting status: Active The status of a contract under amendment changes to Active if the latest changes are canceled by reverting. The contract returns to its state prior to its amendment. Create New Version Resulting status: Under amendment When a contract is in Under amendment status and a new version of it is created, this new version will also be in Under amendment status.
Closed	The status of a contract changes to Closed when you close (terminate) it. Closed status implies either a foreclosure or a closeout after expiration.	Reopen Resulting status: Draft Makes this contract available for corrections and resubmission for approval.
Expired	When the contract end date is reached for an active contract, the contract status changes to expired only when you run the Update Contract Status process.	Amend Resulting status: Under amendment Opens the contract for corrections and before resubmitting for approval. Apply Hold Resulting status: Hold Close Resulting status: Closed Resulting status: Closed This contract is no longer available except from contract history.

The following figure shows a contract flow from draft to approval to acceptance.

The following figure shows contract amendment, contract delete, and contract hold flows.