Contract Compliance (CC) engine

The Contract Compliance (CC) engine generates a summary of the degree to which contracted volume commitments have been satisfied by shipped volume.

Configuration

To configure this engine, adjust the following components.

Contract Data

The CC engine relies on the presence of contract data in Contract entities with the following fields populated:

• Customer Id—Unique ID for the associated Customer entity.
• Start Date—Indicates the first day that the contract is in effect.
• End Date—Indicates the last day that the contract is in effect.

The CC engine also relies on the presence of contract data in Contract Line Item entities with the following fields populated:

• Product Id—Unique ID for the associated CC Product Group.
• Sold Volume—Committed volume for that contract line. This represents the volume that the customer agreed to purchase during the contract’s effective time period.

Volume Metric

To view the volume metric for this engine, go to the Sales IQ > Engine Config > Sales IQ Transactions Aggregated worksheet. Depending on your user permissions, the worksheet will resemble the following image.

The CC Volume Metric calculated column defines the volume metric used in the CC engine and should align with the Sold Volume values for the corresponding Contract Line Item. The following default calculation uses revenue normalized with any applicable currency conversions. Update this calculation as needed.

(CASE WHEN ([Currency Conversion Rate] > 0)
THEN [Currency Conversion Rate]
ELSE 1
END)
* [Revenue]

Product Group

To view how this engine defines products for Contract Line Items, go to the Sales IQ Products worksheet and navigate to the CC Product Group calculated column. Depending on your user permissions, the worksheet will resemble the following image.

Edit the calculated column to use any available product attributes that best define the product grouping level for the CC engine. For example, if the lowest level of grouping in your product master data is a product’s SKU, then the CC Product Group column must represent this. The CC engine excludes products configured with a null value from engine outputs.

Outputs

To view the results of running the CC engine, go to the CC Engine Output worksheet. Depending on your user permissions, the worksheet will resemble the following image.

This engine generates results for every Contract Line Item. This worksheet contains the following metric fields:

• Contract Start Date—Indicates the first day that the contract is in effect.
• Contract End Date—Indicates the last day that the contract is in effect.
• Contract Volume—The Sold Volume from the Contract Line Item.
• Contract Period Shipped Volume—Total-to-date sum volume shipped for the Customer Id and CC Product Group combination. This sum is within the Contract Start Date and Contract End Date. The volume is measured in the CC Volume Metric.
• Contract Period Percent Complete—Ratio of the total contract period that has elapsed. Once the current date is past the Contract End Date, the engine sets the complete percent to 1.0.
  For example,

  If the following conditions are met:

  • The Contract Start Date is 12/1/2020.
  • The Contract End Date is 12/31/2020.
  • The current date is 12/16/2020.

  Then the engine calculates the Contract Period Percent Complete as (12/16/2020 - 12/1/2020) / (12/31/2020 - 12/1/2020) = 15 days / 30 days = 0.50.

• Contract Volume Percent Complete—Ratio of the Contract Period Shipped Volume to the Contract Volume. Contract Lines with Shipped Volumes that exceed the Contract Volume have a ratio greater than 1.0.
• Complete Ratio—Ratio of the Contract Volume Percent Complete to the Contract Period Percent Complete. Values less than 1.0 represent contract lines shipped at a pace less than what is needed to satisfy the Contract Volume before the Contract End Date.
• Action Impact—Impact within a contract time period of making the total-to-date sold volume reach the contracted volume. This is a calculated column defined as the difference between the Contract Volume and the Contract Period Shipped Volume. Modify this column as needed to create the desired Action Impact metric.
• Current—The Contract Period Shipped Volume. Modify this calculated column as needed to capture the best measure of the “Current” state for any actions created.
• Target—The Contract Volume. Modify this calculated column as needed to capture the best measure of the “Target” state for any actions created.