Document & Contract Management V2: Finance-Adjacent Contracts

1. Concept: Lateral Expansion

• Goal: Once AP-native contracts (V1) work, expand laterally to finance-adjacent contract types.
• Strategy: Focus on contracts with high financial leverage and direct impact on accruals/close. Do not expand generically into Legal/HR.

2. Supported Contract Types (V2)

A) Service & Subscription Contracts

• Examples: IT Services, SaaS, Maintenance Agreements, Consulting Retainers.
• Why: Direct impact on accruals and month-end close; same AP buyer persona.
• Required Additions:
  • Recurrence Logic: Handling monthly/annual billing cycles.
  • Service Period Definitions: Matching invoice service dates to contract periods.
  • Indexation Clauses: Auto-updating prices based on CPI or agreed indices.
  • Termination Notice: Logic to track renewal/cancellation windows.

B) Lease-Like Contracts

• Examples: Operating leases, Equipment rental, Vehicle leases, Machinery.
• Why: Support operational side of leasing (payments/allocations).
• Required Additions:
  • Payment Schedule Extraction: Structured view of future payments.
  • Period Allocation: Spreading costs over long horizons.
  • Linkage: Link contract to specific Asset or Cost Center.
• Note: We are not doing full IFRS 16 compliance initially, but supporting the operational payment/invoice matching side.

C) Framework Agreements (Procurement)

• Examples: Volume discounts, Preferred supplier pricing, Master Service Agreements (MSA).
• Why: Feeds procurement insights and renegotiation triggers.
• Required Additions:
  • Price Tier Logic: Dynamic pricing based on volume/spend.
  • Volume Tracking: Accumulating spend against the framework.
  • Deviation Detection: Flagging purchases made outside the framework (maverick spend).

3. Out of Scope (V2)

• HR Contracts: Employment law, personal data.
• Legal-Only Docs: NDAs, IP agreements, Dispute management.
• Reason: Different buyers, different risk profiles, zero accounting leverage.