Proposed Contract Amount - Contract Workspace (CW)

• The amount being proposed for approval during the draft stage of contract.
• Two things automatically happen following completion of the Contract Workspace's approval task: Proposed Contract Amount is removed from the contract, and the approved value updates Total Approved Amount and Available Amount
  
  • In a Combined Spend Workspace, why did Total Approved Amount and Available Amount not update the new amount correctly after approval?

Total Approved Amount - Contract Workspace (CW)

• Captures cumulative approved amounts.
• Once Proposed Contract Amount is fully approved, the value is captured here. Also captures future amounts routed through Proposed Incremental Amount for Approval.
• Corresponds to the CW's Spend tab field: Approved

Approved Maximum Limit - Contract Request (CR)

• Read-only field reflective of the Contract Workspace's Total Approved Amount.
• Recorded as 0.00 until the Contract Workspace is approved.

Maximum Limit - Contract Request (CR)

• Editable field used to capture the amount being committed to for the Contract.
• For example, 1M may have been routed for approval but a commitment of only 800K is required. So Maximum Limit would be entered as 800K.
• In the case of Master and Sub-Agreements, the Maximum Limit of any one Sub-Agreement cannot exceed the Maximum Limit specified in the Parent.
  
  • Maximum Limit Error on Subagreement: What caused the error Maximum Commitment is more than that of parent agreement?
• Corresponds to the CW's Spend tab field: Contract Max

Available Amount - Contract Workspace (CW)

• The value is relative to the CW, and captures the difference between the CWs Total Approved Amount (i.e. Approved Maximum Limit) and the CRs specified Maximum Limit.
• Using the example, if 1M is approved and 800K is defined as the Maximum Limit, then a balance of 200K is withheld, and remains "Available" in the CW for future spend. Likewise, if 1M is approved and the Maximum Limit is set to 1M, the full amount is committed to in Buyer, and so Available Amount reflects as 0.00 from the CW.
• The calculation takes place after the Contract Workspace is Published, since that’s when the CRs Maximum Limit is finalized.
• Available Amount does not recalculate based on Orders and Invoices.
• Corresponds to the CW's Spend tab field: Available

Amount Available - Contract (C)

• The value is relative to the buyer-side contract and is defined by it's associated Contract Request's Maximum Limit.
• It stores the funds available to order against. Once Amount Available reaches 0.00, by default the contract will close. This behavior can be controlled and is discussed in more detail here: Why is a contract closing as over limit?
• Using the original example, if 800K is committed (Maximum Limit) then the Amount Available to order against is 800K.

Proposed Incremental Amount for Approval - Contract Workspace (CW)

• This field is used to reload the Contract in later rounds/versions. It behaves the same as Proposed Contract Amount. Once Proposed Incremental Amount for Approval is fully approved, the amount rolls into the cumulative Total Approved Amount, and also reflects in Available Amount until publish, which is when the committed funds will then transfer to the Open Contract (C).

Spend tab calculation: Approved = Available + Contract Max
Which is the same as: Available = Approved – Contract Max
*refer to their corresponding contract fields discussed above

Contract Draft (pre-approval, pre-publish)

• CW Proposed Contract Amount: 1M
• CW Total Approved Amount: 0.00
• CW Available Amount: 0.00
• CR Approved Maximum Limit: 0.00
• CR Maximum Limit: 0.00

Contract Draft (approved, pre-publish)

• CW Total Approved Amount: 1M
• CW Available Amount: 1M
• CR Approved Maximum Limit: 1M
• CR Maximum Limit: 800K

Contract Published

• CW Total Approved Amount: 1M
• CW Available Amount: 200K
• C Amount Available: 800K