The Spend section within the quotation builder pertains to spend commitment. In some instances a spend commitment will be required from your customer to ensure that that quote is profitable for your company
For example, customer wants equipment to be supplied as part of the deal, but based on the tariff, it would not be profitable to supply the equipment.
To solve this issue and to ensure that the deal becomes profitable customers can agree to a spend commitment each month or over the course of the contract to ensure that the costs of the equipment supplied are covered by the spend commitment.
Spend Commitment Rules
Within the spend commitment feature there are 4 rules that can applied, and should be understood before creating a spend commitment entry. The fields highlighted in green are the fields that you must populate based on the selections highlighted in blue:
OGR: On-going revenue
%Term: % required over the term of the contract
Rule 1
If monetary value type is selected with Additional Spend (%/Term), supply value, % and term overrides
Rule 2
If monetary value type is selected with Additional Spend (OGR), supply value override only as % and term derived from OGR
Rule 3
If percentage value type is selected with Additional Spend (%/Term), supply value, % and term overrides
Rule 4
If percentage value type is selected with Additional Spend (OGR), supply a percentage as value override
Creating a spend commitment
Clicking Spend opens the Spend Commitments window, which allows you to select an item from the quotation, and specify details for this line. Do this by clicking the + New Spend Commitment button.
Item: Select the line item from your quotation that the spend commitment applies to
Reference: The spend commitment reference if applicable e.g. a network confirmation reference here
Spend Type: Select the spend type e.g. Minimum Spend, Additional Spend (OGR) or Additional Spend (%Term)
Value Type: Monetary = Monetary value that must be met, Percentage = Additional Spend calculated in terms of percentages
Value O/R: Monetary value that must be met for either minimum spend
% O/R: Percentage value that must be met for either minimum spend
Inc Profit: Ticking this means any spend commitment will be included within the Service & Deal Profit totals
Hidden: This will prevent the spend commitment from being displayed on the quotation
Click on the tick button to accept and save.
Supporting documents
Supporting documentation can be attached alongside any commitments that are created. For example:
Recent Bills
Network Reference
Signed Agreement
Use the Supporting Documents button to open the file uploader.
