Best Practice for Terminating Contracts

No matter what the scenario, if a contract is no longer in use it should be terminated. Whether you use expiration dates on your contract or not, once the contract is no longer in use, the best practice is to terminate the contract.

Term contracts

Terminating Contracts


If you change the status of the contract then it can be filtered out of reports very easily. The status of the contract is key to getting it to report in the right places. i.e. pending, terminated, active, etc. Furthermore, using the termination date and termination code give you more filtering, reporting and view capability. Not always is an expiration date the same as the termination date. So that can be helpful with tracking what happened in those scenarios.

See this link for best practice on list of termination codes


Also using the termination date gives you the ability to filter a list of contracts that were terminated "on or before this date" or however you want to filter it.


The termination code helps you track the trend of why you are loosing contracts or renewing (if you use evergreen), or went out of business, etc. This can also help identify problem areas.


So best practice would be to use all 3 fields. If you set your date and termination code when you click OK on the contract it will automatically change the status to terminated.

If you want to know how many contracts you lost to the competition it's important to use the correct termination codes, more here.

We have ID463 which will alert you of contracts set to expire in a given number of days.

Terminating equipment

Terminating Equipment on Contract

Often you have scenarios where the contract will remain in place, but specific equipment will be removed. In this case, you will want to terminate the equipment from the contract. 

Don't use the remove button to do this!


Instead, double click on the equipment and enter the end coverage and end base billing dates here:


Your end dates must be within the current billing period shown. Once you have entered the end coverage dates, the Termination code drop-down will allow you to choose an option and is a required field.

You can choose to prorate the base billing for the equipment on the final billing by selecting the Proration settings... button. eAutomate will automatically calculate a prorated based amount, based on the end coverage dates. You can adjust this as needed. You can also enter the final meters for the equipment on this screen:


If you do not open the Proration settings, you will be required to set the end meter dates on the equipment on the meter tab:


Once terminated, you'll see this icon noting that the equipment has been terminated:


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