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IACCM Contract Management Forum

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Anonymous
2018-08-22 13:39:01

One contract, different billing entites

Hello. We have taken one order which requires billing certain services to more than one non-UK entity (due to EU VAT exemptions). Normally, our contracts only allow us to bill the entity that we are contracted with and no one else therefore an alternative is to novate selected services to the new entity where possible. This is the only fix we have without getting Sales involved post delivery of a contract. This is extremely time consuming, so I was wondering if other organisations have the same issue?

I know that when on-boarding a customer the sales folk should maybe ask the question about who they want the invoice to go to, but due the nature of sales it's easier for them to put everything on one order (I totally understand that no one likes admin!). If there a more efficient way of dealing with this contract bill requirement?
 
 •   2018-11-09 17:34:15
Local service agreement (LSA) is often used by multinatinations for mutli country billing.
 
 
 •  Jagged Peak, Inc.  •   2018-11-13 04:01:06
We have multi-country and cross-border contracts but it is crucial to know ahead of time (and if they don't tell you, know to ask all the right questions if you are even offered a seat at the pre-sales proposal stage that is) and even so far as knowing how to price the deal out - the currencies should be key to the CFO's numbers to approve the deals going out the door. It appears you will have to amend the contract to account for the various countries, correct contracting entities, currencies as well as any other country or regional specific items that come up (is the US Privacy law listed but you are now including the EU? You may likely have to add GDPR in the contract). As an end to end multi-channel ecommerce company we have multitude of factors to consider - what fulfillment center is handling the fulfillment? Is there call center or tech support to include? Are the ecommerce services based in the US or abroad? Etc. and that all varies by country so would have almost be a complete rewrite of a contract (and sometimes simpler to restate the master.)
I can never stress enough to the sales and proposal teams to bring me in as early as possible to help review the RFPs and draft the list of issues to have a team call.
 
 
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