Telus TPM Documentation

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Terminating a Contract

Contract Termination Procedure

Ability to terminate a contract within our system and specify the necessary user permissions

Procedure:

1. Access the contract: Open the specific contract in the system.
2. Locate the Actions menu: Navigate to the top right of the screen to find the Actions section.
3. Initiate termination: Select “Terminate” from the Actions menu.

User Permissions: To access the Terminate function, users must meet the following criteria:

• Hold Finalizer status
• Have Contract Approval rights assigned to their role

Note: Ensure that only authorized personnel with the appropriate permissions can perform contract terminations to maintain system integrity and comply with organizational policies.

After clicking Terminate, a Terminate popup will appear with 3 Terminate options and date associated with each:

Contract Termination Options and Procedures

This outlines the various termination actions available within the contract management system, their implications, and best practices for implementation.

General Termination Guidelines:

• 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.

Important Notes:

• The Date field is required on each of the actions.
• The Date entered must be today's date or greater.
• 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.
• 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.
• Sweep date will not impact either of the above.

If there is an active contract and another draft out there, the active contract can't be terminated until the draft is cancelled.

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.

If a contract is terminated, it can't be un-terminated if there is another contract out there with overlapping timeframe.

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.