Shortening options - example 2
Case: contract start date is 1/1/2015; the contract has a duration of 5 years. A renewal option of 5 years is applied. The status of the contract is Renewed. You want to shorten the contract by 4 years.
The following settings are used:
Contract
Field | Field value |
|---|
Start date contract | 1/1/2015 |
Duration | 10 years (after applying the renewal option) |
Notice term | 3 months |
Proposed expiration date | 31/12/2024 |
Shortening option
Field | Field value |
|---|
Description | Shortening with 4 years |
Ultimate notification date | 31/12/2020 |
Brought backward contract end date | 31/12/2020 |
Applying the shortening option
Set the status of the option to Applied. The Proposed termination date field will be populated with the same date as the Brought backward contract end date (31/12/2020). The contract status is still Renewed.