Spend Analysis summarises areas where there is most off-contract spend, and hence the greatest opportunity for generating further savings, on the Dashboard.
If your Finance/P2P system is capable of recording the contract that orders are placed under, then you can ask for Spend Analysis to be configured to use this data to determine your contract compliance.
Alternatively, Spend Analysis will, by default, use an automated algorithm to identify which spend transactions were placed under which contract. This algorithm is based on Contract Compliance Rules.
Overview of Contract Compliance Rules
There are two levels of Contract Compliance Rule:
- Basic Contract Compliance Rules
- The supplier
- The date of the transaction, which must be between the start and end date of the contract
- Advanced Contract Compliance Rules
- The Departments/Cost Centres the contract has been restricted to (if any are specified)
- The Categories the contract relates to (if any are specified)
When a Contract Compliance Rule is satisfied, Atamis SA will assign the appropriate Expenditure Records to the contract. When changes are made to Contracts the system will re-evaluate the Rules automatically and, if necessary, re-allocate Expenditure Records to or from Contracts.
Setting Basic Contract Compliance Rules
You can Modify Basic Contract Compliance Rules with a Standard Licence Type, however you will need a Full Access Profile.
Basic Contract Compliance Rules are set on the Contract Detail page.
| 1 | To set the Supplier Name used on the Contract, double-click the Pencil icon then click the Picker icon to locate and select the Supplier and click Save. |
| 2 | To change the Start and End Dates, double click the Pencil icon, set the date and click Save. |
| 3 | A Contract Spend Report button opens a report which shows spend associated with the Contract. Additional buttons may be displayed here based on other modules or features which you have access to. |
By default the system includes transactions dated up to 30 days after the Contract End Date.
This figure is configurable – please contact Atamis Support if you would like it changed.
Setting Advanced Contract Compliance Rules
You will require access to the Contract Management (CM) Module via a Licence Type of Enhanced User or above in order to modify Advanced Contract Compliance Rules.
The Assign Departments, Assign Cost Centres, and Assign Categories buttons can be used to ensure that only spend with selected Departments, Cost Centres, and Categories is assigned to the Contract.
Contract Compliance Algorithm
When you change any of the above Rules, the system will automatically generate a batch process that will work through all of the expenditure transactions for the contracted supplier and estimate which ones were purchased under that contract. This will take a few minutes to process. If more than one
Contract could apply, the system defaults to using the Contract with the largest Estimated Value. When it has finished processing, you will be able to see the Expenditure transactions at the bottom of the Contract Detail page.
The Advanced Contract Compliance Rules can be used in conjunction with the Supplier Custom Mapping Rules for accurate compliance reporting of Suppliers with multiple Contracts, where each Contract relates to a different Category of goods/services.
Improving Contract Compliance Accuracy
You can easily identify off-contract spend which should be displayed as on-contract by using the Suppliers table on the Compliance dashboard. To correct the Compliance Rules, begin by searching for and opening the contract. If the supplier field is not set, select the supplier using the Supplier Lookup. If there are duplicate suppliers with that name, pick the one with the most spend and then see instructions for de-duplicating suppliers.
If the Supplier field is set, check the Start Date and End Date, as it may be that the contract needs to be renewed or extended.
Duplicate Suppliers
If the dates are correct, the only other possibility is that there are duplicates of the supplier, and the Report Under feature has not been used to set the Contracted Supplier as the ‘parent’.
If Report Under has been set incorrectly such that the Contracted Supplier is a ‘child’ supplier, then a Health Check routine run periodically by Atamis will detect this situation and automatically reassign the contract to the parent supplier.
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