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Creating a Contract

Creating a Contract

The Vendor & Contract Management system provides multiple entry points to create a new contract, offering flexibility based on your current workflow. A contract tracks obligations and financial details centrally, linking them to vendors for comprehensive vendor management.

Contract Creation Options

You can create a new contract through three different methods:

  1. From the section Reports ( Vendors / Contracts) by clicking on “ Create Contract” in the card at top right Quick Actions.

  2. From any table of contracts by clicking on “New” button.

  3. From the vendor view page, section Contracts by clicking on “New” button. The contract will be linked automatically to the vendor

Option 1: Create from Reports Dashboards

You can initiate contract creation directly from either the Contracts Dashboard or the Vendors Dashboard.

 

From Contracts Dashboard

create contract via CLP.png

  1. Navigate to Reports > Contracts in the left sidebar (marker 1)

  2. In the Quick Actions card, click on Create Contract (marker 2)

This method provides quick access when you're reviewing contract metrics and want to add a new contract immediately.

 

From Vendors Dashboard

create contract via VLP.png

  1. Navigate to Reports > Vendors in the left sidebar (marker 1)

  2. In the Quick Actions card, click on Create Contract (marker 2)

This approach is convenient when you're analyzing vendor data and identify the need for a new contract.

Option 2: Create from Contracts Section

You can create contracts from any view within the Contracts section of the navigation menu.

create contract via contracts table.png

  1. Navigate to Contracts in the left sidebar and select any sub-item (All Contracts, Active Contracts, Inactive Contracts, Draft Contracts, or Expired Contracts) (marker 1)

  2. Click the + New button in the top-right corner of the contracts table (marker 2)

This method is ideal when you're actively managing contracts and want to add a new one while reviewing existing contracts in a specific category.

Option 3: Create from Vendor View

When you create a contract from a vendor's detail page, the contract is automatically linked to that vendor, streamlining the creation process.

create contract via vendor view.png

  1. Navigate to a specific vendor's detail page

  2. Click on the Contracts tab (marker 1)

  3. Click the + New button in the Contracts section (marker 2)

Key Benefit: This method automatically associates the new contract with the current vendor, eliminating the need to manually select the vendor in the contract form. This is the most efficient approach when you know which vendor the contract should be linked to.

Completing the Contract Form

Regardless of which creation method you use, you'll be presented with the New Contract form to enter the contract details.

 

Required Fields

Contract name *

  • Enter a unique name for this agreement/contract

  • This name will be used to identify the contract throughout the system

Vendor *

  • Select the vendor/supplier who provides the service/goods related to this agreement/contract

  • Note: If you created the contract from a Vendor View (Option 3), this field will be pre-populated with the selected vendor

Contract model *

  • Select the type of agreement/contract from the dropdown

  • Options may include service agreements, purchase orders, maintenance contracts, etc.

Contract Details

Contract / PO number

  • External reference of the PO contract (optional)

  • Use this for linking to procurement systems or external tracking numbers

Start date

  • The actual start date of the agreement/contract

  • This date determines when the contract becomes Active (if not marked as draft)

  • Can be left empty if the exact start date is still in draft/planning stage

  • Format: DD/MM/YYYY

End date

  • The actual end date of the agreement/contract

  • Can be left empty if the agreement is open-ended

  • This date determines when the contract becomes Expired

  • Format: DD/MM/YYYY

More information

  • Free text area for additional details, notes, or special terms

  • Use this field to capture any relevant information about the contract

Mark as draft

  • Toggle this switch to Yes if the contract is still in draft stage

  • When marked as draft:

    • The contract state will be Draft

    • The contract is considered as non-existing for vendor status calculations

    • The contract won't affect the vendor's active/inactive status

  • Toggle to No when the contract is finalized and should be considered operational

Contract Management

Contract manager

  • Search and select the person responsible for this agreement/contract

  • The contract manager will have access to this contract in edit mode

  • This person oversees contract execution and vendor relationship

Business owner

  • Search and select the owner of the contract from a business perspective

  • This is typically the department head or budget owner who benefits from the contract

Attachments

Upload supporting documents

  • Drag and drop files or click browse to upload contract documents

  • Supported documents include: signed contracts, amendments, terms and conditions, SOWs, etc.

  • Multiple files can be attached to a single contract

Financial Information

Click Financial Information to expand this section and enter payment details.

Invoice payment terms

  • Select the payment terms from the dropdown (e.g., Net 30, Net 60, Due on Receipt)

  • This defines when invoices should be paid

Currency

  • Select the currency for all financial amounts in this contract

  • Options include: USD, EUR, GBP, and other currencies

Total amount

  • Enter the initial total amount for the contract

  • This represents the overall contract value

Total paid amount

  • Enter the amount already paid against this contract

  • Used to track payment progress and outstanding balances

  • The system will calculate remaining balance automatically

After Creating a Contract

Once you complete the form and save:

  1. The contract will be created with a State determined by the logic:

    • Draft

    • Inactive

    • Active

    • Expired

Learn more about the Contrat State

  1. The linked vendor's status will be automatically updated based on all associated contracts

  2. The contract will appear in the appropriate contract lists (All Contracts, Active Contracts, etc.) and dashboards

  3. Daily automated updates will maintain the contract state based on current dates relative to user local time

Best Practices

  • Use Option 3 (Vendor View) when you know the specific vendor - this saves time by auto-populating the vendor field

  • Use Option 1 or 2 when creating multiple contracts or when the vendor is not yet determined

  • Mark contracts as draft during negotiation phases to prevent them from affecting vendor status calculations

  • Fill in start and end dates as soon as they're confirmed to enable automatic state management

  • Attach contract documents immediately upon creation for complete audit trail and easy reference

  • Assign contract managers and business owners to ensure clear accountability and access rights