InEight Contract - Contract Commitment Check

TRANSCRIPT

In this video, you'll learn how to compare your contracts value against the control cost item budget, using the contract workflow approval process. Reviewing the budget status helps you determine if the contract workflow should continue. Beginning in a contract's header, if your contract has a workflow, you'll see the Save and Start approval button. Select it to start the approval process.

The start approval window opens to the first step. Here, you'll find the approval steps that are applicable to your contract. Click next. The second step in the approval is the budget check step.

This step compares the original base value against your project's current budget. The current budget shown is from the WBSs assigned in control, and it calculates a gain / loss. As an approver reviewing the contract, notice the contract has a higher value than the budget does, thus causing a red flag. Within the organization settings, organizations can control whether the workflow be initiated based on budget.

And allow workflow when over budget toggle is available for each contract type when the base value is more than the current budget. If the toggle is set to no, it will not allow approval if the contract exceeds the budget, and an error message will appear stating that you need to correct your budget. When the toggle is set to yes, and the current value exceeds the WBS current budget, a yellow warning banner appears at the top of the budget check tab indicating there is a loss. You can still start the workflow if the bid package exceeds the current budget.

The budget information is included in the workflow email notification. This helps the approvers see the contract commitment before they approve the contract. Well, now you know how to review your contract's budget and determine its effects on your contract approval workflow. Thanks for watching.