How to Track Spending Under a Master Agreement?

Tracking Spend on Master Agreements

For master agreements that have pre-defined spending limits, you can easily set up controls to monitor their usage. These agreements are often fulfilled through multiple partial deliveries, individual orders, or services over time. Tracking this spending helps ensure that, for instance, the total amount spent on individual purchases within these agreements does not exceed the agreed limits. 

• Maximum Contract Value: This is the total maximum amount agreed upon in the contract.
• Spending Tracking: Monitor exactly how much has already been spent against the contract's total.
• Order Linkage: Connect each purchase order or invoice to the main contract to automatically update the remaining budget.
• Alerts: Get notifications on your dashboard when you are approaching or exceeding the contract budget.
• Planning for Renewals or Extensions: Understand when the financial limit or contract end date is approaching, helping you plan for renewals or extensions.

Example:

Your company has a $100,000 contract with a supplier for IT services. Each service order deducts from that contract’s total. After $85,000 is used, a warning triggers so you can renegotiate or renew.

How to Track Spending on a Master Agreement?

1. Open the Contracts Organizer.
2. Select the specific master agreement whose spending you want to track.
3. Select the "Costs and Consumption" tab.
4. On the right, you will see a graph of budget spending.

How to Budget for a Master Agreement

• Check out our guide: How to Set a Spending Limit and Budget for a Contract