How do I close my contract?
Description
Cause
Resolution

Verify the contract is ready to close

Criteria for closing a contract

  • The receivable balance must equal the billed balance
  • The retainage receivable balance must be zero

Compare your balances

Review Accounts Receivable

  1. Go to Accounts Receivable, Reports, Aging, Detail by Customer.
  2. Add a condition for Contract EQ [contract ID].
  3. Confirm the report returns balances of zeros and doesn't show any invoices.
  4. If negative and positive invoices appear on the report, clear them in AR before closing the contract.
  5. Adjust any remaining balances.

Review Contracts

  1. Go to Contracts, Inquiry, Contract/Item Inquiries, Derived Totals.
  2. For CN Derived, select Active and click OK.
  3. For CN Contract, select Active and click OK.
  4. Click an existing column heading and select Add column after this column.
  5. Click Index, select the CN - Contract record and click OK.
  6. Select Status and click OK.
  7. Check the amount in the Retainage Balance column.
  8. Add Total Billed + Add-on Billed + Deduction Billed + Tax Billed for your billed balance.
  9. Add Cash Receipts + Receivable Adjustment for your receivable balance.
  10. Compare the totals from steps 7 and 8.
  11. If those columns equal AND the Retainage Balance is zero, you can close the contract.
  12. If the columns don't equal or the Retainage Balance isn't zero, make adjusting entries in AR. Contact Sage Support if you need assistance.

Close the contract

  1. From the File menu, select Open Contract.
  2. Select the type of contract as Active.
  3. Select the contract from the list or type the ID of the contract.
  4. Click OK.
  5. Select the appropriate status for the contract, Closed or Paid in Full.

 

Note:

If you need to close multiple contracts you can use ODBC to access the ODBC replaceable field CN - Contract Status. You must have security access and know how to use a third party application for this process. Change the Contract Status field to 4 for Closed or 5 for Paid in Full.

 

Steps to duplicate
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