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Contract Status Example

Suppose a new contract is created. At first, this contact is given the status of Preliminary, enabling it to be modified as negotiations continue with the customer. After the contract is signed, it is committed, which causes its status to change. The new status is based on the relationship between the date when the contract was committed and the start date. For example, if the contract was committed on January 15, 2005, but the start date is February 1, 2005, the contract status changes to Pending until February 1. When the start date arrives, the status changes to Effective. On the other hand, if the start date was January 1, 2005 (that is, two weeks ago), the contract status changes to Effective immediately upon its being committed.

To change a contract that has already been committed, a new contract version must be created. At first, the new version has the status of New. After it is committed, the previous version remains Effective until the start date of the new version. For example, if the new version was committed on July 15, 2005, but the start date is August 1, 2005, the previous version remains Effective until August 1 (instead of its original end date, which may have been at the end of 2005). When the start date of the new version arrives, its status becomes Effective while the status of the previous version changes to Not Effective.

Reports can be generated using data from both Effective and Not Effective contract versions. This is based on the assumption that the new version, which only partially overlaps the effective dates of the previous version, is not meant to completely replace it. If, however, the effective dates of the new version overlap both the start and end dates of the previous version, CA Business Service Insight assumes that it is meant to completely replace the previous version. As a result, the new version becomes Effective as soon as it is committed, and the status of the previous version changes to Canceled. Reports cannot be generated for a Canceled version.