About contract states
In Lawson Contract Management, contract states indicate the status of a contract and the different requirements that are necessary to approve and activate a contract. The different contract states include:
-
Draft
-
Released
-
Negotiation
-
Final Approval
-
Ready to Activate
-
Active
-
Inactive
-
Addendum
-
Amendment
-
Closed
Based on the assigned contract classification and the actions that you perform, a contract can proceed through these different states during its life cycle. The actions can include approving a contract through internal or external resources; preparing a contract for negotiation; releasing and activating a negotiated contract; rejecting or inactivating a negotiated contract; creating an amendment or addendum; closing a contract; or returning a contract to the draft state.
Draft state
Contracts are first created in the Draft state. In this state, information can be added, changed, or deleted (except contract type) within the different contract fields. Depending on the contract classification requirements, the process flow for a contract can also be set.
The Contract Type field cannot be changed if the status for the vendor agreement interface is set to Yes.
The table shown below lists the actions and transitions that occur as the contract moves from the Draft state.
| Action in draft state | Contract transitions to the following state | Comments |
|---|---|---|
| Release action | If the contract classification requires approval, the contract moves to the Released state. | If the contract has an assigned classification, rules for the classification are used. |
| Release action | If the contract classification does not require approval but does require negotiation, the contract moves to the Negotiation state. | If the contract has an assigned classification, rules for the classification are used. |
| Release action | If the contract classification does not require approval or negotiation, but does require final approval, the contract moves to the Final Approval state. | If the contract has an assigned classification, rules for the classification are used. |
| Release action | If the contract classification does not require approval, negotiation, or final approval, the contract moves to the Ready to Activate state. | If the contract has an assigned classification, rules for the classification are used. |
Released state
When a contract is in the Released state, changes or updates cannot be made to the contract or contract fields. In this state, if the contract classification requires approval, the contract can be internally approved prior to negotiation and comments or additional information can be added.
The table shown below lists the actions and transitions that occur as the contract moves through the Released state.
| Action in released state | Contract transitions to the following state | Comments |
|---|---|---|
| Approve action | If the contract classification requires negotiation, the contract moves to the Negotiation state. | If the contract has an assigned classification, rules for the classification are used. |
| Approve action | If the contract does not require negotiation but does require final approval, the contract moves to the Final Approval state. | If the contract has an assigned classification, rules for the classification are used. |
| Approve action | If the contract does not require negotiation or final approval, the contract moves to the Ready to Activate state. | If the contract has an assigned classification, rules for the classification are used. |
| Disapprove action | A reason code is required and the contract is returned to the Draft state. | The contract needs to be changed or updated. |
| Reject action | A reason code is required and the contract is moved to the Inactive state. | The contract can be reactivated and sent to the Draft state. |
Negotiation state
When a contract is in the Negotiation state, changes or updates cannot be made to the contract or contract fields. In this state, the contract is sent for negotiation and external approval.
The table shown below lists the actions and transitions that occur as the contract moves through the Negotiation state.
| Action in negotiation state | Contract transitions to the following state | Comments |
|---|---|---|
| Complete negotiations action | If the contract classification requires final approval, and no changes or updates are needed, the contract moves to Final Approval state. | |
| Complete negotiations action | If the contract classification does not require final approval, and no changes or updates are needed, the contract moves to the Ready to Activate state. | |
| Disapprove action | A reason code is required and the contract is returned to the Draft state. | The contract needs to be changed or updated. |
| Reject action | A reason code is required and the contract is moved to the Inactive state. | The contract can be reactivated and sent to the Draft state. |
Final Approval state
When a contract is in the Final Approval state, changes or updates cannot be made to the contract or contract fields. In this state, if the contract requires approval, the contract can be internally approved prior to negotiation and comments and additional information can be added.
The table shown below lists the actions and transitions that occur as the contract moves through the Final Approval state.
| Action in Final Approval state | Contract transitions to the following state | Comments |
|---|---|---|
| Approve action | The contract moves to the Ready to Activate state. | |
| Disapprove action | A reason code is required and the contract is returned to the Draft state. | The contract needs to be changed or updated. |
| Reject action | A reason code is required and the contract is moved to the Inactive state. | The contract can be reactivated and sent to the Draft state. |
Ready to Activate state
The Ready to Activate state is used when a contract has been approved by both internal and external resources and is ready to be activated. When a contract is in this state, changes or updates cannot be made to the contract or contract lines.
The table shown below lists the actions and transitions that occur as the contract moves through the Ready to Activate state.
| Action in Ready to Activate state | Contract transitions to the following state | Comments |
|---|---|---|
| Activate action | The contract and associated articles and terms are moved to the Active state. | Activating a contract tied to an agreement creates a vendor agreement in Vendor Agreements (PO25.1)and can create new items and vendor items. |
| Disapprove action | A reason code is required and the contract is returned to the Draft state. | The contract needs to be changed or updated. |
| Reject activation action | A reason code is required and the contract is moved to the Inactive state. | The contract can be reactivated and sent to the Draft state. |
Active and Inactive states
When a contract is in the Active state, the associated articles and terms are available for use. In the active state, changes or updates can be made to a contract by creating an addendum or an amendment.
When a contract is in the Inactive state, the contract is either not in use or has expired.
Addendum and Amendment states
The Addendum and Amendment states indicate that either an addendum or amendment exists for a contract. Creating amendments and addendums
Closed state
By changing a contract to Closed, the contract is no longer listed under the In Progress Contracts tab. Rather, it is moved to the All Contracts tab. You cannot edit or process a contract once it has been closed.