Mid-market companies, like yours, are a core part of a B2B purchasing space that Forrester estimates will reach $1.2 trillion in total spending by the year 2021.
To manage the increase of purchasing and payment of services, your accounts payable teams will spend large amounts of time manually receiving invoices, tracking spends, and checking payment terms. But what if you could automate that entire process, saving your team, and ultimately your entire organization, valuable time and resources?
Here are four ways AvidXchange’s Service Contract Tracking and Payment solution can do just that – simplifying your team’s collaboration while increasing accountability.
Service Contract Tracking Integrated with Purchase to Pay:
AvidXchange offers a seamless solution to manage vendor contracts and service agreements, helping you track and report on key contract metrics. Our solution captures and routes contract-related invoices for approval and issues payments linked to a contract. Once the contract has been approved in the portal, requisitions, purchase orders and invoices can be released against the contract, and AvidXchange updates the remaining contract budget. While the details of the services provided might vary, the total contract value, payment terms and expiration date are established upfront – with the ability to always adjust the contract dates and amount by submitting a change order through approval.
Proactive Contract Budget Management:
Contract budget tracking helps your organization adhere to your budget and project goals. From AvidXchange’s Contract Search screen, your CFO can quickly view total contract spending as well as remaining budget to date. Additionally, you’re able to deep dive into contract details and expenses with a simple contract budget report. These features allow your procurement team to re-evaluate contracts or address issues through a change order if you are approaching the budget limit.
Customers like CHPA and oil and gas transporter and producer Oryx Midstream Services (Oryx) have both used the AvidXchange Purchase to Pay to successfully track contracts and budgets for research services (CHPA) and contractors (Oryx). They have benefited from having a holistic view of their spending in relation to the contract. For example, approvers can drill into a contract from an invoice to check that the invoice reflects the negotiated price, payment terms and scope of work.
Business Alerts for Expiration Dates:
To help you stay proactive with managing your service agreements and contracts, AvidXchange also offers business alerts. One way to use these alerts is to set a reminder email notification to go out 90 days before a contract expires. With this reminder, the procurement team has enough time to re-evaluate a contract and go out to search for other providers’ bids.
Gain a Holistic View of Spending Across Entities:
From the perspective of CFOs and upper-level management, the biggest gain with an integrated purchase-to-pay and contract platform is the additional control and global visibility. CFOs can view service contract spending and budgets at a high level across departments and entities. At the same time, they can easily drill into individual requisitions, purchase orders and invoices tagged to a contract to see how the transaction was coded.