About Agreement Amendments
Amendments allow you to modify the information on an agreement after it has been activated.
You can amend any agreement as long as the agreement is active and there are no existing amendment quotes or open invoices. If pending invoices exist, you must cancel or process them. If a pending amendment (quote) exists, you must either activate it or delete it.
When you amend an agreement, the system automatically copies the original agreement/revision and sets the amendment status to Quote. The original agreement/revision is left intact, and will remain active until you activate the amendment. In addition, the following occurs:
- The quote description, alternate agreement, agreement type, and customer fields default from the original agreement/revision; with the exception of the agreement type, these fields cannot be edited.
- The system sets the effective date as follows:
- If the effective date on the original agreement has already occurred, the effective date for the amendment will be set to the current date.
- If the effective date on the original agreement is the current date, the effective date for the amendment will be set to the current date plus one day.
- If the effective date on the agreement has not occurred, the effective date for the amendment will be set equal to the original effective date.
- The expiration date is set equal to the original expiration date.
- The system copies all budget entries to the amendment.
- The system copies the agreement's billing schedule, minus any billings that have already been processed. Processed billings will remain with the originating agreement. The system does not copy the billing schedule notes.
- The system copies the agreement's amortization schedule, minus any revenue that has
already been billed. The portion of the amortization schedule containing the billed
amount(s) will remain with the originating agreement revision. The system does not
copy the amortization schedule notes.Note: Amounts that have been recognized in the Revenue Recognition process have no affect on the agreement schedule.
- Agreement services are copied to the agreement, along with their related work and/or task schedule patterns; equipment, labor, material, and miscellaneous requirements; and split revenue entries (Flat Price services only). For periodic services billed separately, the system also copies the billing and revenue deferral schedules, minus any processed billings and recognized revenue. Processed billings and recognized revenue will remain with the originating agreement.
- Service dates generated from work and task schedules on an agreement service are
handled as follows:
- Service dates that are associated with a work order will be left intact, regardless of whether they fall before, on, or after the termination date.
- Service dates not associated with a work order that fall after the termination date (of the originating agreement/revision) will be deleted.
- Service dates not associated with a work order that fall on or before the termination date (of the originating agreement/revision) will be left intact.
- New service dates will be generated as needed based on the work/task schedule patterns and the new term dates. For work schedules using the "every __ day/week/month" options, the system will generate new service dates based on the agreement term Effective Date rather than the Effective Date of the amended agreement
- Custom fields are copied to the amendment, along with the custom fields associated with agreement services, budgets, required tasks and resources (equipment, materials, labor, and miscellaneous), amortization schedules, and billing schedules.
- The system sets the pricing for the amendment and agreement services priced separately equal to the original agreement and service prices, respectively. If multiple revisions exist, the pricing will be set equal to the pricing of the last revision.
You can modify most of the information on an amendment, including term dates, budgets, services, scheduling, and the ricing and/or remaining to bill for the agreement or any periodic services being billed separately. For more information, see Amending an Agreement.
Deactivating / Terminating an Amendment
You can deactivate an amendment as long as there are no associated work orders or agreement billings. Once you generate work orders and billings for the amendment, the Deactivate button is no longer available, leaving the option to amend or terminate the amendment. If you need to deactivate an amendment with work orders or billings, you must first delete the associated work orders and invoices. This enables the Deactive button, allowing you to deactivate the amendment to make your changes.
You can terminate an activated amendment if needed by clicking the Terminate button in SM Agreements. Once you terminate the amendment, the system toggles the Terminate button to a Reactivate button. This allows you to reactivate the amendment if you terminated it in error.
For more information about deactivating/terminating amendments, see SM Agreement Activation / Deactivation Form.