Termed and Evergreen Contracts

When a Contract is created in Ordway, the Contract Type must be specified. There are two types of Contracts: 

• Termed
• Evergreen

Termed

A Termed Contract has a finite end date and expires when not renewed. The renewal can be manual or automatic when auto-renew is enabled. It has a pre-defined Initial Term and a Renewal Term which may or may not be the same as Initial Term.

A termed contract set to auto-renew monthly generates a new contract version based on the subscription changes. Therefore the Revenue Report displays expected revenue only one month in advance.

A termed contract with auto-renew enabled continues to renew indefinitely until it is manually cancelled. When auto-renew is disabled, the contract expires on the Contract End Date unless manually renewed. Renewal can be done anytime in advance with a Renewal Date after the Current Term End Date.]

To reuse an Expired Contract, it must first be renewed and then modified with the new contract terms. Read more on how to Renew a Subscription. 

These defaults can be set in Setup > Billing Setup, but can also be changed at the individual contract level.

Evergreen Contract

An Evergreen Contract never expires and does not require renewal. When Evergreen is selected, the following fields that apply to a Termed Contract are not displayed:

• Initial Term
• Renewal Term
• Auto-Renew

It is possible to have an Initial Term that is Termed but a Renewal Term as Evergreen. In this case, the contract changes to an Evergreen contract on renewal.

Evergreen contracts initially create 12 months of billing and revenue scheduling. Therefore the Revenue Report displays revenue 12 months in advance until the contract is cancelled.

While billing and revenue is scheduled for 12 months, additional Billing Schedule Lines (BSLs) are created 6 months in advance of the last schedule line end date.

Example:

An Evergreen Subscription that starts on 01/01/2023 will show BSLs and RSLs for the first 12 months. At 6 months prior to the end of the existing BSLs/RSLs, 12 additional months of BSLs/RSLs are generated. 

Read more about creating a Subscription.