With contracts relating to commodity products, the complexity tends to arise in distribution agreements including pricing, discounts, deposits, rebates, charge-backs, claims and reserves. These contracts need financial planning support for revenue recognition requirements and complex calculations of reseller performance incentives.
For complex products and services, the complexity lies in the specifications of the products and services including project plans and bills of materials. On the buy side ECM systems support spend management, and on the sell side they provide fast and accurate invoicing.
The systems ensure that the services and products invoiced have been ordered and delivered according to specifications, that they are invoiced at the right time for the right price, and that cash is collected or paid correctly.