Folio Variations

A contract variation occurs when the parties to the contract agree to do something differently from the way they originally agreed, whilst the remainder of the contract otherwise operates unchanged.

For example in a contract for the supply of goods, the parties might agree that the delivery time for the goods should be reduced by one week in exchange for an increase in payment, with the other terms remaining the same. Such an agreement, if valid, would amount to a variation of the existing contract.

The variations feature in Folio does the following:

• Creates an approval process for variations to contracts
• Updates the value and/or the end date of the original Folio record when the variation is approved.
• Keeps a record of every variation to the Original Folio record on the Variations tab of the original Folio record.
• Generate a unique sequential variation number for every approved variation.

Setting Up Variations

Requesting and Approving Variations

The following is a list of Terminology that is used for the Variation feature in Folio:

Term	Description
Original Folio Template :	Template which allows requesting a variation.
Original Folio :	The original contract record that is being varied
Original Folio Key	The Key for the original contract record
Variation Template :	The Folio Template that is used to request and approve a variation. The variation template can be linked to one or more Original Folio Templates.
Variation :	The variation is a Folio record on which a request to make a change to the Original Folio is made.
Variation Approval :	Approval required to approve a variation & update the value & or end date on an Original Folio record.
Variations Tab	The Variations Tab is a tab on the Original Folio record where all approved, rejected, in progress and abandoned variations to that Original Folio are listed.
Variation Number :	Variation number is generated after a variation is approved. It will not be generated for rejected & abandoned variations.
Variation Status :	Variations can have 4 statuses (i.e. Approved, Rejected, In Progress & Abandoned)
Approved Status:	When a variation is approved the value and/or end date on the Original Folio is updated and the variation will be closed. The most recent approved variation can be re-opened and edited, it will need to progress through the entire approval workflow from stage 1. Variations that are older than the most recent variation cannot be re-opened.
Rejected Status :	When a variation is rejected, by any one of the approvers, the variation will remain open and can be resubmitted for variation approval.
In Progress Status :	A variation is in progress from the time it is requested to the time it is approved or abandoned.
Abandoned Status :	A variation that is closed without being approved is abandoned. Any abandoned variation can be re-opened but will need to progress through the approval workflow from stage 1.
Current Value :	Current Value is the sum of the value of the Original Folio and all its variations.
Old Value :	The Current Value on Original Folio before each variation.
Old End Date :	The End Date on Original Folio before each variation.
Revised Term:	The duration by which the term is extended or reduced with each variation.