Overview
This guide outlines best practices for ensuring complete and accurate contract management in Tropic. Following these steps will help you maintain reliable records, streamline renewals, and manage contract details effectively.
Guidelines
Include the “Big Six” in All Contract Records
To ensure completeness, each contract record should include the following:
- Contract Owners: Assign one or more contract owners to each record.
- Department: Specify a department for the contract.
- Contract Documents: Attach one or more contract documents.
- Total Contract Value: Record the total value of the contract.
- Term Length: Define the term length, such as Annual, Multi-Year, or Month-to-Month.
- End Date: Include the end date unless the contract is month-to-month or rolling.
Why It Matters: Complete contract records are critical for sending renewal reminders, managing access, and maintaining accurate reporting.
Create a New Contract Record for Renewals
- Submit a Renewal Request: Start the renewal process by submitting a request.
- Create a New Contract Record: Once the renewal request is complete, create a new contract record from it.
- Update Previous Contract: Mark the previous contract as renewed and adjust its stage to Renewed. Set the Renewed By field to the new contract record.
Tip: If you renewed without using a request, add a new contract record for the renewal instead. Then change the previous contract’s status to Replaced.
Handling Upgrades and License/User Add-Ons
When upgrading a contract to include additional SKUs or adding licenses/users mid-term, follow these best practices:
-
If the renewal date remains the same:
- Submit a new request so all approvals can take place.
- After approvals, update the existing contract record and attach the amendment documentation.
- This ensures a single renewal reminder and prevents confusion.
-
If the new SKU or add-on has a different renewal date:
- Consider creating a separate contract record to reflect the differing terms.
-
Optional: Indicate amendments in the contract record description
- To provide clarity, add "w/ amendment" in the contract description.
Maintaining accurate contract records for upgrades helps prevent missed renewal notifications and ensures a clear audit trail.
Adjust Your Renewal Reminder Date if Needed
- Default Reminder Date: Tropic sends renewal reminders 90 days before the contract’s end date by default.
- Adjusting the Date: Modify the renewal reminder date if more or less notice is required.
Why It Matters: Customizing reminders ensures adequate time for decision-making and prevents missed deadlines.
Set the Contract Term Based on Renewals
- Annual Contracts: If a contract renews annually but is paid monthly, set the Contract Term to Annual. This ensures proper renewal reminders.
- Month-to-Month Contracts: For ongoing subscriptions or monthly renewals, set the Contract Term to Month-to-Month. Note that Tropic doesn’t send renewal reminders for month-to-month contracts.
Why It Matters: Correct term settings ensure accurate reminders and align with contract renewal practices.
Upload an Invoice for Ongoing Subscriptions
If you don’t have a contract document for an ongoing subscription:
- Upload an invoice or a similar document.
- Set the Contract Term field to Month-to-Month.
Why It Matters: Including at least one document ensures the record is complete and meets compliance standards.
Set Document Types
- Edit attached documents to select a specific type. By default, the type is set to Not Set.
Why It Matters: Assigning document types clarifies their purpose and improves searchability.
Common Mistakes to Avoid
- Incomplete Records: Missing details like contract owners or total value can lead to gaps in management.
- Incorrect Term Settings: Misaligned terms can result in missed renewal reminders.
- Not Uploading Documents: Failing to attach any document (e.g., invoice) leaves the record incomplete.