Contract Management Overview
- 22 Oct 2024
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Contract Management Overview
- Updated on 22 Oct 2024
- 4 Minutes to read
- Print
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In Asset Management, contract management entails managing contracts for assets during their whole lifecycle, from acquisition to renewal or termination. Managing contracts with suppliers for hardware purchases, software licenses, upkeep, and support services falls under this category. It minimizes the risk of contract violations, guarantees terms and conditions followed, and saves money by closely monitoring contract performance and renewal deadlines. Organizations can enhance vendor relationships, streamline operations, and ensure that IT assets are used effectively and aligned with corporate objectives by keeping a central repository of all IT-related contracts and automating reminders for important tasks.
Let's explore the following use case!
Use Case User Persona: ITAM Analyst | Solution |
NovaTech organization wants to procure multiple software. Procuring multiple software will need multiple contracts. Hence NovaTech wants to have a robust contract management process in place. They should be able to create new contracts and manage the existing contracts. | Ira the ITAM Analyst can use the Contract Management option in Asset Management to manage all the contracts. A new contract can be created with all the terms and conditions. The created contracts can be effectively managed. |
Creating a New Contract
To create a new contract, perform the following steps:
Navigate to Asset Management > Contracts > Manage Contracts. The list of contracts is displayed below.
Figure: Manage contracts
Click New to create a new contract. See the Field Description to know more about the fields. The new contract page is displayed.
Figure: New contract
Field Description
This table contains the list of fields and their descriptions that are available on the new contract page.
Field | Description |
|---|---|
Contract ID | The contract ID is displayed. The status of the new contract is in Draft. |
General Details | |
Department | Select the required department from the dropdown. This is a mandatory field. |
Name | Mention the name of the contract. |
Category | Select the required category from the dropdown. |
Contract Number | Mention the contract number. |
Vendor | Select the name of the vendor from the dropdown. |
Customer | Select the name of the customer from the dropdown. |
More Information | |
Author | Displays the name of the Analyst who has created the contract. |
Owner | Select the name of the owner for the contract. |
Customer SPOC Details | |
Contact Person | Mention the name of the SPOC for the contract. |
Contact Number | Mention the contact details of the SPOC. |
Contract Term | |
Contract Start Date | Select the contract start date from the calendar. |
Contract End Date | Select the contract end date from the calendar. |
Renewal Date | Select the renewal date from the calendar. |
Termination Date | Select the termination date of the contract from the calendar. |
Contract Details
The other tabs in the Contract Details are explained below.
Financial Details
Links
Termination Clause
Terms and Conditions
Timeline
Financial Details
The Financial Details tab contains all the financial information related to the contract. See the Field Description to know more about the fields.
Figure: Financial Details tab
This table contains the list of fields and their descriptions that are available under the Financial Details tab
Field | Description |
|---|---|
Business Unit | Select the business unit from the dropdown. |
Location | Select the location from the dropdown. |
Cost Center | Mention the cost center for the contract. |
Contract Value | Mention the monetary value of the contract. |
PO Number | Mention the purchase order (PO) number. |
PO Value | Mention the monetary value of the PO. |
Invoice Number | Mention the invoice number of the contract. |
PO Date | Select the date of the PO from the calendar. |
Invoice Payment Terms | Select the payment term from the dropdown.
Figure: Invoice payment terms |
Notes | Mention any additional notes or remarks for the financial details. |
Contract Attachment | Click to upload the contract copy. |
Links
In the Links tab you can link assets, services, and other contracts related to the present contract. All the linked records are visible under the Relationship section.
Figure: Links
Link - Click the Link to link any associated assets, services, infrastructure, software licenses, and contracts. For example: Click Assets under Link. From the Link Assets pop-up window, select the asset and click Link.
Figure: Link
De-link - The linked assets, services, infrastructure, software licenses, and contracts can be delinked. For example: Select the linked records for the De-link option to be enabled. Click De-link to remove the linked assets.
Figure: De-link
Termination Clause
You can specify if there are any termination clauses for the specific contract.
Select the termination clause from the dropdown and mention any notes related to the clause.
Figure: Termination Clause
Term And Conditions
In the Terms and Conditions tab you can mention all the terms and conditions related to the contract.
Figure: Terms and conditions
Add Terms & Conditions - Select the required terms & conditions from the dropdown.
Upload Terms & Conditions - Click upload to attach any attachments related to terms & conditions.
Terms & Conditions - Mention any notes related to the terms & conditions.
Timeline
After the contract is created, the timeline tab displays the chronological sequence of events and actions taken on the contract.
After entering all the details related to the contract, click Save to save the new contract. The status of the newly created contract is in Draft.
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