Contract options fields
Field | Description | ||
|---|---|---|---|
General | |||
Contract | Enter the contract to which the contract option applies. | ||
Contract line | Enter the contract line to which the contract option applies. | ||
Valid from | Enter the date from which the contract option can be applied. | ||
Valid up to and including | Enter the date up to and including which the contract option can be applied. In the automated renewal process, renewal options are processed when this date has passed. | ||
Contracting party - fine | Enter the contracting party that is required to pay a fine. | ||
Contracting party - fee | Enter the contracting party that receives a fee. | ||
Renewal options | |||
Renewal term | Enter the period by which the contract can be extended. This field is only available for renewal options. Not completing this field results in the contract being extended for an indefinite period of time. | ||
Repeat renewal | To specify whether the contract option should be copied to be applied later. If set to Yes, when processing this renewal option, Planon will create a copy of the option and will increment the priority so that the process of renewal will run continuously until it is ended by setting the value for this field to No. To use this feature, renewal options must be based on priority and not on date. If this field is set to No, the renewal option will only be processed once, after which its status changes to Exercised.
You can use the Valid up to and including date for repeating contract renewal options, alongside priority-based options. When generating a new option, the Valid up to date is automatically calculated based on the specified date and the renewal term. In addition, for active renewal options based on priority, where the accepting party's notice term has no value, the tentative notice date is populated. | ||
Priority | The automated renewal process operates based on the value you set in this field. The contract option with the highest priority (1) is processed first. Contract options for the same contract cannot have the same priority. For more information on automatic renewal, see Renewal options. | ||
Notice term - accepting party | Specify the term of notice required by the accepting party. | ||
Tentative notice date | The date in this field is automatically calculated and updated by Planon. Notice dates can be used in notifications, so that a contract manager can take timely action on a contract or contract option before the notice date expires. For more information, see Notice dates on contract options. | ||
Tentative contract end date | The date that appears in this field is based on the following calculation: Contract end date + Renewal term = Tentative contract end date Example: 31-12-2018 + Year = 31-12-2019 This date is a tentative date, because it may shift as a result of changing the contract end date. This date will only be calculated if the renewal option status is Active or In preparation. | ||
Termination options / Purchase options | |||
Exercisable by | Specify the contracting party that can exercise the termination / purchase option (Both, Accepting party, Offering party). | ||
Based on | Specify whether you want to execute the termination / purchase option either based on: • the end date • the notice date This field is specifically relevant if the schedule is based on the value in either of the following fields: Recurrence - calendar, Recurrence - month(s), or Recurrence - interval If you select the Recurrence - calendar or Recurrence - month(s) field, you can specify what the selected month or calendar date represents: ◦ The next notice date. The next end date is calculated as follows: next notice date + notice term ◦ The next end date. The next notice date is calculated as follows: next end date - notice term Suppose you have a contract that automatically continues unless it is terminated. There is an option to terminate the contract based on a regular schedule. If the termination has not taken place, the notice date is in the past. You can automatically update the next notice date / end date based on the following Recurrence fields without having to define a new termination option: Recurrence - calendar Recurrence - interval Recurrence - month(s) If the option's next notice date is in the past and this schedule is configured based on one of the Recurrence fields, Planon will update the next possible notice / end date based on this configuration (when saving the contract / option or when activating the action to redetermine the latest dates). For lease accounting contracts, the commitments must be recalculated when the notice dates are updated for a reasonably certain termination option. The calculated end date will shift. For more information about working with lease accounting contracts, see Lease accounting. | ||
Notice term - offering party | Specify the term of notice required by the offering party. | ||
Recurrence - calendar | For automatically applying termination options based on dates, select the specific date(s) to be used. To save these settings, select the Save settings check box. The settings are saved upon closing the dialog box. The next time you open it, the saved settings will be displayed. | ||
Recurrence - month(s) | For automatically applying termination options based on month(s), select the specific month(s) to be used. | ||
Recurrence - interval | For automatically applying termination options based on a period, specify the period to be applied. For more information on automated processing of termination options, see Automated processing of termination options. | ||
