Skip to main content
Version: Current

FAQ: What is the difference between contract lines, contract pricing and contract thresholds?

All three are rows on a contract, which is why they get mixed up. The difference is what each one is for.

Contract lines

Contract lines are the line detail printed on the agreement itself, in the same shape as the lines on an invoice, with a stock code, a description, quantities, prices and totals.

They are a record of what the document says. They do not check anything and they do not enforce anything.

Contract pricing

Contract pricing rows record the price you agreed for an item, as a Purchase Price, a Sell Price, or both, optionally narrowed by dimensions such as location or project.

These rows do enforce. When a document line carries that item, Zudello compares the line's price against the contracted price and marks it Within contract, On contract or Over contract.

Use pricing when the agreement says what a unit costs. See Contract pricing.

Contract thresholds

Contract thresholds are caps. Each row has a Threshold Type of Amount or Quantity, a Total, and dimensions that define what the cap covers.

Zudello accumulates spend or quantity from your documents against each threshold, so you can see what has been used and what is left, and get told when a document takes you over.

Use thresholds when the agreement says how much in total, rather than how much each. See Contract thresholds.

In short

You want toUse
Keep a record of what the agreement listedContract lines
Make sure you are charged the rate you negotiatedContract pricing
Make sure you do not spend past what you committed toContract thresholds

One contract can carry all three.

Need help?

Contact your organisation administrator or Zudello support for assistance with contracts.