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--- terminating_a_contract [2025/04/22 17:46] – tina.robles
+++ terminating_a_contract [2025/04/22 18:25] (current) – tina.robles
@@ Line 26: / Line 26: @@
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-A date is required for each of the terminate actions, but a user can choose to terminate Accruals only or Claims only. Sweep should only be used in combination with one of the other dates.  The recommendation is if a user is choosing a Sweep option that both the Accruals and Claims are terminated.  To terminate any of these, enter in a date (today's date or greater) and click Terminate.
+**Contract Termination Options and Procedures**
-  * **Accruals Date**:  Accruals as of this date now stay static and no longer change.  The system will automatically update the end date to match the date entered.  Any lumpsums on the contract will also have the end date updated to match the date entered. The contract state remains and does not update to Terminated.
+This outlines the various termination actions available within the contract management system, their implications, and best practices for implementation.
-  * **Claims Date**:  No more claims are processed after this date.  The contract state will update to Terminated on the date entered for Claims.
+General Termination Guidelines:
-  * **Sweep Date**:  After this date, the balance of the accrued dollars on the contract become $0 and the swept amount is now what the balance was. Using this example below, the $4K balance is zeroed out and the report will show the amount that was swept.  Clicking sweep does not update the contract status.
+  * A specific date is required for each termination action.
+  * Users may choose to terminate Accruals or Claims independently.
+  * The Sweep option should only be used in conjunction with other termination actions.
+  * To execute any termination action, input the desired date (current date or later) and select "Terminate."
+Termination Actions:
+______Accruals Termination__
+  * Effect: Accruals become static as of the specified date and cease to change thereafter.
+  * System Actions: a. Automatically updates the contract end date to match the entered date. b. Adjusts the end date of any lump sum payments to align with the entered date.
+  * Note: The contract state remains unchanged and does not update to "Terminated."
+______Claims Termination__
+  * Effect: Claim processing ceases after the specified date.
+  * System Action: Updates the contract state to "Terminated" on the date entered for Claims.
+______Sweep Action__
+  * Effect: Zeroes out the balance of accrued funds on the contract after the specified date.
+  * System Actions: a. Transfers the current balance to a "swept amount" category. b. Reflects the swept amount in relevant reports.
+  * Note: This action does not alter the contract status.
+**Best Practices**:
+  * When implementing the Sweep option, it is recommended to terminate both Accruals and Claims concurrently.
+  * Carefully consider the implications of each termination action on contract management and financial reporting.
+Example: In a scenario where a contract has a $4,000 balance, executing a Sweep action would result in:
+  * The $4,000 balance being reduced to $0.
+  * The $4,000 being recorded as the "swept amount" in subsequent reports.
+By adhering to these guidelines and understanding the implications of each action, users can effectively manage contract terminations while maintaining accurate financial records.
 {{:pasted:20220103-135203.png}}
-**Important Notes**:
+**Contract Termination: Critical Considerations and System Behavior**
-  * The Date field is required on each of the actions.
-  * The Date entered must be today's date or greater.
+This outlines key aspects of the contract termination process, including date requirements, system actions, and the impact on contract status and related components.
-  * Only the claim terminate date updates the contract status to Terminated.
-  * When you add a termination date for ACCRUALS in the UI and submit, the end date of the contract header must be set to the termination date. If that day is TODAY’S date, the contract will immediately be set to a state of EXPIRED. Otherwise, if the date is in the future, the end date changes to the termination date but the contract stays in the state it was originally in.
+__Date Requirements__
-  * If you ALSO add today’s date as the termination date for claims at the same time you terminate for Accruals, then instead, the contract should go to a TERMINATED state like it would if only terminating for claims, but the end date should still change to the termination date for accruals. (terminate from claims wins over expire from accruals)
-  * Lumpsums on a contract terminated for accruals that start before the termination date and finish after it should have their event end date set to the termination date.
+  * The "Date" field is mandatory for all termination actions.
-  * Sweep date will not impact either of the above.
+  * All entered dates must be either the current date or a future date.
+__Contract Status Updates__
+  * Only the Claims termination date triggers an update of the contract status to "TERMINATED".
+  * Accruals termination may result in an "EXPIRED" status under specific conditions (see section 4).
+__Accruals Termination__
+  * Upon submission of an Accruals termination date via the user interface: a. The contract header's end date is automatically set to the termination date. b. If the termination date is the current date, the contract status immediately changes to "EXPIRED". c. If the termination date is in the future, the end date is updated, but the contract remains in its original state.
+__Simultaneous Accruals and Claims Termination__
+  * When both Accruals and Claims are terminated with the current date: a. The contract status changes to "TERMINATED" (Claims termination takes precedence). b. The contract end date is set to the Accruals termination date.
+__Impact on Lump Sum Payments__
+  * For contracts terminated for Accruals: Lump sum payments that begin before the termination date and end after it will have their event end date adjusted to match the termination date.
+__Sweep Date Considerations__
+  * The Sweep date does not affect the contract status or end date modifications described above.
+By understanding these system behaviors and considerations, users can more effectively manage the contract termination process while maintaining accurate records and contract statuses.
+Copy
 -----
-If there is an active contract and another draft out there, the active contract can't be terminated until the draft is cancelled.
+**Contract Termination: Prerequisites and Implications**
+This outlines important considerations regarding contract termination, focusing on the relationship between active contracts and draft versions, as well as the impact of termination on claim processing.
+__Termination Prerequisites__
+  * Active Contract with Existing Draft: a. An active contract cannot be terminated if a draft version of the same contract exists. b. Resolution: The draft version must be cancelled prior to initiating termination of the active contract.
+  * Best Practice: Regularly review and manage draft contracts to ensure they do not impede necessary terminations of active contracts.
+__Post-Termination Implications__
+  * Claim Processing: a. Once a contract's status is updated to "Terminated," the system prohibits the creation of new claims against that contract. b. This restriction helps maintain the integrity of the claim process and ensures compliance with contract terms.
+  * Best Practice: Prior to terminating a contract, ensure all valid claims have been processed and consider notifying relevant stakeholders of the impending termination.
+__System Safeguards__
+  * The system's built-in logic prevents unauthorized terminations and claim submissions, thereby: a. Maintaining data consistency across contract versions. b. Enforcing proper contract lifecycle management. c. Mitigating the risk of processing invalid claims
-Once a contract status is Terminated, no new claims can be created against that contract.
 -----
 **__Un-Terminating a Contract__**
-A Contract in a Terminated state can be Un-terminated by a user with permissions.  Just click the Un-Terminate button and the contract will return to the correct state.  When clicking un-terminate, then Accrual and/or Claims would resume for this contract.  The Sweep can also be un-terminated which would bring back an accrual balance to that contrat.
+**Contract Un-Termination Process**
+This document outlines the procedure and implications of reversing a contract's terminated status, including the effects on accruals, claims, and swept balances.
+__Authorization Requirements__
+  * Only users with appropriate system permissions can execute the un-termination process.
+  * Access to this functionality is restricted to ensure proper contract management oversight.
+__Un-Termination Procedure__
+  * Initiation: Select the "Un-Terminate" button within the contract interface.
+  * System Response: The contract will automatically revert to its appropriate operational state.
+__Impact on Contract Components__
+  * For accruals, Upon un-termination, accrual calculations resume if previously terminated. System continues tracking and updating accruals according to contract terms.
+  * For claims, claims processing capability is restored if previously terminated. System allows new claim submissions according to contract parameters.
+  * For swept balances, un-terminating a swept contract restores the original accrual balance. All previous financial tracking mechanisms are reactivated.
+  * System Behavior- The contract management system automatically: a. Restores appropriate contract status b. Reactivates relevant financial tracking c. Enables associated business processes
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@@ Line 60: / Line 152: @@
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-The Terminated Date display on the Contract Header.  Hover over the date to see who terminated the contract and on which date the terminate action was performed.
+The Terminated Date displays on the Contract Header.  Hover over the date to see who terminated the contract and on which date the terminate action was performed.
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