Overview
In the Tropic platform, each supplier's page includes an Est. Annual Contract Value field, which calculates the estimated annual spending based on your active contracts. To ensure accurate data, verify that the following fields in each active contract are correct:
- Total Contract Value
- Start Date
- End Date
If any of these fields are missing or incorrect, the Est. Annual Contract Value will not reflect accurate spending.
How Est. Annual Contract Value is Calculated
The annual contract value for each contract is calculated as follows:
((Total Contract Value) / (End Date - Start Date)) * 365
The Est. Annual Contract Value for a supplier is the sum of the annual values for all active contracts. Contracts with a status other than "Active" are not included.
Common Scenarios Affecting Est. Annual Contract Value
Scenario 1: Estimated Value is $0
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- If this value shows as $0, it’s likely that one or more active contracts are missing a Start Date or End Date.
Scenario 2: Estimated Value is Too High or Too Low
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- If this value is unexpectedly high or low, verify that Start Date and End Date correctly reflect the contract term for the Total Contract Value.
- For example, if the Total Contract Value represents a 30-day period, the Start and End Dates should be 30 days apart.
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Scenario 3: Estimated Value Should Match Total Contract Value
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- If you expect the Est. Annual Contract Value to match the Total Contract Value but it doesn’t, check that the Start Date and End Date accurately reflect the contract term.
Additional Resources
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