The following diagram shows the different states of a contract.
The contract’s status is shown in the Status field on the contract record. Non-perpetual items have the same status as the contract where they belong, while perpetual items always have a status of Active. The contract item’s status is shown in the Contract Item Status field on the contract item record.
Pending: When a contract record is created, its initial status is set to Pending. A contract remains in this state until its contract items are generated.
Active: When contract items are generated for the contract, its status changes from Pending to Active.
Renewal Generated: When a renewal transaction is generated for the contract, its status changes from Active to Renewal Generated. A contract remains in this state until contract items are generated for the renewal contract.
A renewal contract is automatically generated with an initial status of Pending if the renewal transaction is a sales order, or when a renewal quote or opportunity is converted to a sales order. The renewal contract’s status remains in Pending until its contract items are generated. Renewal transactions are generated by the R05 script (R05-SS: Create Renewals nightly) for active contracts with a target renewal date that is on or before the current date.To manually generate a renewal transaction, click the Renew Now button on the contract record. You can also perform batch renewals by going to Contract Renewals > Renewals Automation > Renew Now: Batch Process.
Renewal Rejected : When a contract’s renewal transaction is rejected, its status changes from Renewal Generated to Renewal Rejected.You can reject a renewal transaction (opportunity, estimate, or sales order in Pending Approval status) if contract items are not yet generated for the renewal contract (that is, renewal contract is still in Pending status).When a renewal transaction is rejected, the status of the renewal contract changes from Pending to Canceled. To reject a renewal transaction, click the Reject Renewal button on the transaction record.
Renewal Processed: When contract items are generated for the renewal contract, the preceding contract’s status changes from Renewal Generated to Renewal Processed.Meanwhile, the renewal contract’s status changes from Pending to Active after its contract items are generated.
Canceled: When a contract with a status of Pending, Active, or Renewal Rejected is canceled, its status changes to Canceled. Also, when a renewal transaction is rejected, the renewal contract’s status changes from Pending to Canceled. Canceled contracts will not be processed for contract item creation, renewal, upsell, or downsell.
Closed : When you run the script that closes contracts, it searches for expired contracts and changes its status from Active to Closed. Expired contracts are contracts with a current status of Active and an end date that is before the current date. To set the status of expired contracts to Closed, manually run the R08 script (SWV CR MR R08 Close Contracts).