Notice terms and notice dates
Contracts often require parties to give formal notice before certain actions can take place, such as terminating or renewing a contract. To support this, Planon uses the concepts Notice term and Next notice date.
These concepts work together to determine when notice must be given and by which date action is required, based on the contract configuration and any active contract options.
Notice term
A notice term is the contractually agreed period that must be observed when a party gives formal notice to terminate a contract. Notice terms define how far in advance notice must be given before a contract can be terminated. A notice term is expressed as a period of time (for example days, weeks, months, or years) and does not represent a date itself.
Use in Planon:
• On contract level, the notice term is used for termination purposes only. Notice terms are defined per party: one notice term for the accepting party and one notice term for the offering party.
• The notice term on the contract determines how the Next notice date for termination is calculated.
• Notice terms defined on the contract are used as defaults when creating termination options.
• On contract option level, notice terms can be defined per option. Their role depends on the option type (for example termination or renewal).
• The party to which a termination option applies is determined by the value entered in the Exercisable by field on that option.
Next notice date
The next notice date is the next contractual deadline by which formal notice must be given. In Planon, the next notice date indicates by which date action is required to terminate or renew a contract, depending on the applicable contract options. A notice date represents a contractual cut-off date, not a system notification or reminder.
Use in Planon:
• Notice dates can relate to termination or renewal, depending on the active contract options.
• Notice dates are calculated automatically by Planon and updated when relevant data changes.
• On contract level, the Next notice date represents the earliest upcoming notice date derived from:
◦ the notice term defined on the contract (termination), and
◦ any active renewal, termination, or shortening options.
• When multiple notice dates apply, Planon always takes the earliest upcoming notice date.
• On contract option level, notice dates are shown as Tentative notice dates, which are used for option processing, reporting, and monitoring upcoming actions.