When adding a contract to the Novatus system, it is important to select the right contract term type so that renewals are handled properly and are not overlooked. Currently, the Novatus system has five classifications for contract term types:
- Auto-Renewal, Auto-Advance - An automatically-renewing contract where the Novatus system advances the current contract expiration date to the next renewal date and sets up new event alerts.
- Auto-Renewal, Manual Advance - An automatically-renewing contract where a user must change the current contract expiration date to the next renewal date and set up new event alerts.
- Fixed, Auto-Inactivate - A fixed term contract that the Novatus system automatically inactivates when the contract reaches its expiration date (i.e., the contract's status is changed from "Active" to "Inactive").
- Fixed, Manual Inactivate - A fixed term contract whose status must be manually changed from "Active" to "Inactive" by a user once the contract reaches its expiration date.
- Perpetual - A contract with an effective date, but no expiration date. Perpetual contracts are often Master agreements that contain legal terms, as well as schedules with term and renewal information.
- Coterminous – A term type used exclusively for the incorporated (child) contract of a root (parent) contract. When this term type is selected in an Incorporated Contract Profile, the Novatus system automatically populates all the fields in the Term & Renewal section with the data captured for the root contract, including contract status.