diff --git a/contract/migrations/12.0.4.0.0/pre-migration.py b/contract/migrations/12.0.4.0.0/pre-migration.py
index 70ff3aaa..a99aa2ab 100644
--- a/contract/migrations/12.0.4.0.0/pre-migration.py
+++ b/contract/migrations/12.0.4.0.0/pre-migration.py
@@ -97,11 +97,18 @@ def create_contract_records(cr):
         INSERT INTO contract_contract
         SELECT * FROM account_analytic_account
         WHERE id IN (SELECT DISTINCT {} FROM contract_line)
-        AND recurring_invoices
         """).format(
             sql.Identifier(contract_field_name),
         ),
     )
+    # Deactivate disabled contracts
+    openupgrade.logged_query(
+        cr, """UPDATE contract_contract cc
+        SET active = False
+        FROM account_analytic_account aaa
+        WHERE aaa.id = cc.id
+            AND NOT aaa.recurring_invoices""",
+    )
     # Handle id sequence
     cr.execute("CREATE SEQUENCE IF NOT EXISTS contract_contract_id_seq")
     cr.execute("SELECT setval('contract_contract_id_seq', "
@@ -121,7 +128,6 @@ def create_contract_records(cr):
             UPDATE {table} SET {model_column}='contract.contract'
             WHERE {model_column}='account.analytic.account'
                 AND {id_column} IN (SELECT DISTINCT {col} FROM contract_line)
-                AND recurring_invoices
             """).format(
                 table=sql.Identifier(table),
                 model_column=sql.Identifier(model_column),