Term modification
This reference provides information on the term modification category of the predefined contract modification rules.
The following modification rules in this category are triggered when there is a change in term in the contract as the amendment.
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Rule name |
Description |
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Changes to existing lines - Increase in term on a Series Distinct POB |
The term of the existing distinct POB is increased. For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to change the end date to December 2020 for the same quantity and unit price. |
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Changes to existing lines - Decrease in term on a Series Distinct POB |
The term of the existing distinct POB is decreased. For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to change the end date to June 2019 for the same quantity and unit price. |
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Changes to existing lines - Increase in term on a Series Non Distinct POB |
The term of the existing non-distinct POB is increased. For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a non-distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to change the end date to December 2020 for the same quantity and unit price. |
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Changes to existing lines - Decrease in term on a Series Non Distinct POB |
The term of the existing non-distinct POB is decreased. For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a non-distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to change the end date to June 2019 for the same quantity and unit price. |
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Changes to existing lines - Decrease in term to less than current period on a Distinct/ Non Distinct POB |
The term of the existing distinct or non-distinct POB is decreased to a value that is less than the term in the current period. For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a non-distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to change the end date to March 2019 for the same quantity and unit price. |