The Recurring Term Type is used for Contracts that have auto-renewing terms to them, but unlike Rolling, usually have some form of an End Date or other parameters like different Initial Periods and/or Additional Notice on Renewal/End Dates.
To enter a Recurring Term Type, it helps to know that most of the Dates will be calculated for you after you Save your entered Terms. You begin by entering your Start Date (A) and your Renewal Period (B). The Renewal Period is where you set how often this Contract Renews. The Renewal Date will automatically update to the next date in the Cycle when the current has passed.
Renews Until (C) is where you set how often your Renewal Period will continue for. This selection will default to Cycles, which allows you to determine the number of times this Contract will renew, and this will also create an End Date for the Contract.
While we envision many Recurring Term Types using Cycles, you also have additional selections for Renews Until like Forever & Until.
- Forever will continue to renew the Contract until it is manually terminated.
- Until allows you to set a specific date that the Contract will renew till if required.
Milestones will be sent out for each Renewal Date based on your Organizations settings, and each time a new Renewal Date is created, a new set of Milestone Reminders will be created for the new date. If using Cycles or an Until Date, your final Milestone will be sent based off the End Date.
RECURRING | Initial Period is different?
On all Recurring Term Types, you have the option to set a different Initial Period (D) time, if the terms of the Contract require them. This is not required if the renewal periods for the Contract are all the same, but in the cases where the Initial Term of the Contract is for a different period, you can configure that here.
In the example above, by setting the Initial Period to 2 Years, our 1st Cycle Renewal Date is 1/1/2023, two years after our Start Date. Once the Initial Period has finished, the Contract will continue to auto-renew on a 1 Year basis, since that is our Renewal Period selection.
RECURRING | Notify By
On all Recurring Term Types, you also have the option to add in additional Notify By (E) time, if the terms of the Contract require them. Enabling this option will allow you to enter how much notice needs to be given per the terms of the Contract, and it will create a Notify By Date in the badges to the right. This date is able to be reported on using Views.
This option should only be used if there is specific writing in the terms of the Contract that state additional notice, usually in writing, is required a certain number of days prior to an End/Renewal Date.
Automatic Milestones will send you custom system notifications based on your Organizations preferences, so you do NOT need to use this to be notified, ONLY if you need additional notice per the terms of the Contract. Enabling this option will mean your systems Milestone Reminder will be sent based on the Notify By Date, to ensure you have all the necessary time to review your Contract (if the Logic Based Milestone Feature is being Used).
RECURRING | Cancelled On Date
Finally, on all Recurring Term Types, you can enter a Canceled On Date (F), if you cancel the Contract prior to the End Date of the Contract.
In our example above, if we jumped forward in time and decided to cancel this Contract on 3/15/2024, approximately 21 months prior to our End Date, we could enter that date here, and it will create a badge.
Currently, the Canceled On Date is simply for identifying and reporting on, but in the future, we have plans to tie the activation of this date to potentially allow for Automatic Archiving and Workflow Status Updating.