Overview
Managing contract changes mid-term is crucial to ensuring accurate records and maintaining clear agreements with suppliers. This guide outlines how to handle upgrades, downgrades, adjustments to terms, and cancellations while keeping your Tropic records up to date.
Minor Contract Updates
For minor adjustments such as adding new seats or making additional purchases:
- Create a new contract record for the additions.
- Leave the original contract record unchanged.
- Both records will remain active to reflect the full agreement.
Example: Adding 10 additional seats for a SaaS license mid-term. The original contract reflects the base agreement, while the new record accounts for the additional purchase.
Significant Contract Modifications
For significant changes like downgrading or modifying the core terms of the contract:
- Create a new contract record for the updated terms.
- Mark the original contract as Terminated or Not Renewed, depending on the situation.
Example: Downgrading a software plan from an enterprise license to a standard plan mid-term.
Canceling a Contract
If the contract must be canceled mid-term:
- Mark the contract as Terminated in Tropic.
- Ensure the Termination Date is correctly recorded to reflect when the contract ends.
Important Notes
- Impact on Renewals: Terminated contracts will not trigger renewal reminders. Ensure all necessary follow-up actions are completed before marking the contract as terminated.
- Tracking History: Keeping both original and updated records allows for a clear audit trail of all changes made.
Additional Resources
For more details on contract statuses, renewals, and best practices, refer to the following articles: