Ordinary termination means the end of a contract in compliance with the terms of the contract (specified in the respective plan). In case of ordinary termination, the contract ends on the next possible date and the customer will be billed until then.
Extraordinary termination can also be triggered outside the regular contract period. This results in a revaluation of the items already invoiced and those yet to be invoiced, and the items are revalued or credited to reflect the change in the nature of the contract.
The specified termination date is considered the last day on which the contract is still active - and cannot be before the start of the contract. In the case of extraordinary termination, the contract term can be shortened by up to one day, but cannot be terminated in full. If you want to cancel a contract completely, please use the cancellation function.
Contract frame data: There is a 12-month contract with the contract period January 1st - December 31st with monthly billing at the end of the respective month (interval end billing) and a regular end date on December 31st. Today’s date is October 1st:
Extraordinary contract termination as of November 30th. The customer will be billed until the end of November. The last invoice will be issued December 1st for the period November 1st – 30th.
Extraordinary contract termination as of August 31st. A credit note will be issued for the September 1st -30th period, that was originally billed with the October 1st invoice.
Extraordinary contract termination as of September 15th. A credit note will be issued with a partial refund (50%) of the September 1st -30th period, that was originally billed today on October 1st.
Extraordinary contract termination as of October 15th. For the period from October 1st – 15th an invoice will be issued on October 15 with a partial amount (50%).
Since no contractual basis exists between your company and your customer for the period outside a contract's life (which ends with the termination date) we revert all items that are outside this period and do not touch those that are within.
Cancellation of a contract cancels the contract in its entirety. This means that at the end of the process, no service of the contract is considered to have been performed. As a result, all services previously invoiced will be credited.
Revocation is not yet available. This function would allow revocation only within a predefined revocation period (e.g. for Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011).
Updated 10 months ago