Streamline Contract Management
A common business challenge in most organisations is the effective monitoring and control over the maintenance and billing of supplier contracts and other monthly commitments. Commissioned by one of South Africa’s largest organisations more than a decade ago, AccTech’s Accounts Payable Contract Management solution has stood the proverbial test of time and now forms part of our eWorkflow suite of solutions.
A unique feature of this module is that the Contract Master Data is kept within eWorkflow as opposed to the contract data writing to an ERP system or other data directory. Once a contract has been created in eWorklfow.NET, monthly, quarterly or yearly payments can be conducted against the stored contract through a standard workflow process flow. The fixed or variable costs of a payment can be distributed to the Sage ERP (Accpac or X3) General Ledger, and to multiple cost centres, and territories (GL segments). The signed contract may also accompany the captured data as attachment for convenience and quick access. Contract data can also be updated through a workflow process should the terms of the agreement change at any time.
Details pertaining to registering a contract within Accounts Payable Contract Management can include:
- The purchase order number to which the utility contract was raised against
- The contract type – fixed pricing, variable pricing or both with options for fixed or variable escalation which can accommodate escalations based on either amount or percentage and the time interval to elapse before escalation is applied
- The contract commencement date & expiration date and notice period requirements
- The contract status – contract is active, inactive, cancelled or on hold
- Vendor information from Sage ERP (Accpac or X3) AP Vendors can be matched to the contract
- If the agreement relates to equipment such as photocopiers, the location of the equipment can be specified as well as rate information, model and serial number information.
- Method of payment and payment timing for example EFT payments in advance or arrears of the agreement. Payment frequency can accommodate annual, bi-annual, quarterly, monthly or ongoing payment intervals
- Payment splits applicable – AP Contract Management can accommodate amount or percentage splits upon payment to selected GL accounts or internal cost centres
- The signed contract can be added as an accompanying attachment
Once the Contract has been captured and approved, the contract master data will be stored within eWorkflow.NET and payments can easily be applied against the contract when the associated invoices are received and payments are due. Upon final approval, the selected payments will generate an Accounts Payable Entry into the ERP system.