What is age of contract in SAP EPM-SA - SAP Spend Performance Management?

SAP Term: age of contract

• Component: EPM-SA

• Component Name: SAP Spend Performance Management

• Description: Analyze spend by length of time since the contract went into effect, such as 0-3 months, 4-6 months, 7-12 months, 1-2 years, over 2 years.

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• Key Concepts: 
  Age of Contract is a metric used in SAP Spend Performance Management (EPM-SA) to measure the length of time a contract has been in effect. It is calculated by subtracting the contract start date from the current date. The age of contract is used to assess the performance of contracts and identify any potential issues or opportunities for improvement.
  
  How to use it: 
  The age of contract can be used to identify contracts that are nearing their expiration date and need to be renewed or renegotiated. It can also be used to compare the performance of different contracts and identify any areas where improvements can be made. Additionally, it can be used to track the performance of contracts over time and identify any trends or patterns that may indicate potential issues or opportunities for improvement.
  
  Tips & Tricks: 
  When using the age of contract metric, it is important to consider other factors such as the type of contract, the terms of the contract, and any changes that have been made since its inception. Additionally, it is important to keep track of any changes that have been made to the contract over time, as this can affect its performance and age.
  
  Related Information: 
  The age of contract metric is closely related to other metrics such as total spend, average spend per period, and total savings. These metrics can be used in conjunction with the age of contract metric to gain a more comprehensive understanding of a contract’s performance. Additionally, these metrics can be used to identify areas where improvements can be made or opportunities for cost savings can be found.