Contract management in Financial

Liquidity and a clear view of the spending room an organisation has are subjects that have become more important for the business world in recent years. Knowing what costs are coming and when they must be paid. For this, a proper registration of the obligations and contracts with suppliers is essential so that unexpected and unintended contract renewals can be prevented!

In Profit you can record and manage contracts. You can record the different types of contracts, for example a maintenance contract, rental contract or insurance. By recording an expiry date, Profit alerts automatically that the contract is going to expire or will be extended tacitly. The alert for a contract extension starts a workflow which allows you to extend the contract immediately, or cancel it.

Advantages:

Record and manage contracts centrally.
A view of all contracts, termination periods and durations.
Obligations and reservations have been made part of contract management, so you can more easily add and view them, even if you are not using budgets.
Insight into the contract history.
Correct alert at the right time. Be aware of contracts expiring or tacitly being extended in a timely fashion.
Extend and cancel using a workflow in InSite.

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Description

A contract automatically generates an obligation, if you have configured this for the contract. A contract automatically generates an obligation in the selected ledger. This means the obligation is a financial consequence of the business process; recording at the source.

The financial processing is then the task of the financial administration. In the Obligations view you have a complete overview of all outstanding obligations. You can view and maintain these. Processing a purchase invoice then becomes a simple task. The purchase invoice can easily be matched with an outstanding obligation (or obligations) for the creditor, after which the contra entry can be created.

With a digital purchase invoice ('UBL') the processing is even more efficient because Profit can match against outstanding obligations by reference, amount and/or creditor of the purchase invoice.