Resolution

Prerequisites for Closing a Contract

Contract Status: The contract must have a status of Posted.
No Open Transactions: Ensure there are no existing change orders, open requisitions, purchase orders, or invoices in the proof file associated with the contract.
Permissions: You must have the appropriate permissions assigned to your user role in Contract Management Roles.

Steps to Close a Contract

Go to the Contract Change Orders program under Financials > Purchasing > Contract Management > Contract Change Orders

Click the Search button and enter the contract number in the Contract field. This option is only accessible if the contract meets the prerequisites above.
Click the Close Contract button in the menu ribbon to close the contract.

Impacts

Liquidation Process:
1. The system fully liquidates the contract, reversing any remaining general ledger encumbered amounts if the contract encumbered accounts.
2. A COL journal is created for encumbered contracts with open amounts for the current or next year.
3. A report is generated detailing the liquidation process.
Status Update: The contract status is updated to Closed, and the contract number becomes unavailable for use in requisitions, purchase orders, or invoice entry.
General Ledger Updates:
- For contracts that encumber accounts, journal entries are created, and accounts are updated for the current year and next year.
- If no accounts have money needing to be unencumbered/liquidated, the program updates the contract status to Closed without creating journal entries.
Item Status: If the contract includes an item from the Item File, closing the contract sets the status of the item to Inactive.

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