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How does the 'Residual Balance Adjustment Status' of a fully satisfied contract get changed

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Summary:

How does the 'Residual Balance Adjustment Status' of a fully satisfied contract get changed from 'Not eligible for final adjustment' to 'Eligible for final adjustment'. Is termination on a contract essential for the contract to be eligible for write off?

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We have a contract which is fully satisfied in Aug-23. The last date of the contract is 31-Aug-2023. The contract is fully satisfied on the last day. When reviewed on 1-Sep-23, the Residual Balance Adjustment Status of the contract is still Not eligible for final adjustment.

Reviewing the docs.oracle.com, we find that following is applicable for the fully satisfied contracts:

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