New releases dropped in additional funding round announcement 

Get Started
Home » Contract Compliance and Milestone Management
Try It Now
Talk to an Expert

Process Details

  • Inputs: Bank statements, General ledger transaction data
  • Outputs: Bank reconciliation report, List of outstanding items and discrepancies, Suggested journal entries for bank fees/interest
  • Systems: Contract Lifecycle Management (CLM) Systems (SAP Ariba, Coupa),ERP Systems (SAP S/4HANA, Oracle NetSuite) – for PO and supplier data

Contract Compliance and Milestone Management

Agnostic

Use Case Overview

An AI agent that proactively monitors active supplier contracts to ensure compliance with key terms (e.g., pricing, volume commitments, service levels) and tracks important milestones (e.g., renewal dates, price adjustment windows, reporting deadlines). It alerts procurement professionals to deviations, upcoming obligations, and potential risks.

Challenges

  • High potential for costly errors from manual data handling.
  • Significant time and resources are spent on repetitive, low-value work.
  • The manual process is difficult to scale without increasing headcount.
  • Process bottlenecks lead to delays and missed deadlines.

Solution

This use case solution follows these general steps at a high level:

  1. Data AcquisitionIt retrieves bank statements (Excel) and transaction data from the ERP System's General Ledger.
  2. Transaction MatchingApplies pre-defined rules to match bank transactions with GL entries based on amount, date, reference numbers, and descriptions.
  3. Exception Identification & CategorizationIdentifies and categorizes unmatched items, outstanding checks, deposits in transit, bank fees, and interest.
  4. Automated Journal Entry SuggestionFor identified bank fees or interest, the AI agent can suggest journal entries to be posted in the ERP System.
  5. Reporting & ReviewGenerates a reconciliation report highlighting matched items, outstanding items, and exceptions, then routes it for review and approval.

Primary Benefits

  • Increase EfficiencyDramatically reduce the time and manual effort required to complete the process.
  • Enhance AccuracyEliminate human error to ensure data integrity and reduce financial risk.
  • Empower EmployeesFree your team from monotonous tasks, allowing them to focus on strategic work that requires their expertise.
  • Improve ScalabilityHandle growing volumes of work without a proportional increase in operational costs.
  • Ensure TransparencyMaintain a complete, auditable trail of every action the AI agent takes, described in plain English.

Related Use Cases

FAQ

How does the Agent extract structured data like pricing tables, renewal dates, and specific SLA metrics from unstructured contract documents? +

The AI-powered agent can:
Recognize and Parse Tables: Identify pricing or volume rebate tables within a contract and extract the specific tiers, rates, and effective dates.
Understand Key Phrases: Identify and interpret key clauses related to renewal dates, termination notice periods (e.g., “90 days prior to the end of the term”), and specific SLA commitments (e.g., “99.9% uptime,” “4-hour response time”).
Categorize Obligations: Classify each extracted item as a price, a date-based milestone, a performance obligation, etc., so it can be monitored correctly.

What kind of audit trail is created for the compliance checks? +

The agent maintains a complete audit log for every check it performs. For any flagged discrepancy, you can see:
A link to the specific contract and clause that was violated.
A link to the specific transaction (PO or invoice) that was non-compliant.
The date and time the discrepancy was identified.
Who was notified.

How exactly does this agent prevent "value leakage"? +

Value leakage is the difference between a negotiated deal and the actual results. The agent prevents it in several ways:
Price Compliance: It catches when a PO is issued or an invoice is received at a price higher than what was contracted.
Rebate Management: It flags when your total spend with a supplier has passed a volume tier, prompting you to claim your negotiated rebate.
SLA Enforcement: It notifies you when a supplier’s performance (e.g., delivery times, uptime) drops below the agreed-upon service level, which can trigger service credits or other remedies.

What does a typical implementation process involve, including the ingestion of our legacy contracts? +

Implementation is a structured process to digitize and activate your contract portfolio, typically taking 4-6 weeks.
Integration: We set up secure connections to your contract repository (e.g., CLM, SharePoint) and your transactional systems (e.g., ERP).
Ingestion: The agent ingests your entire portfolio of existing contracts, both new and legacy.
AI Analysis & Validation: The agent extracts key terms from all contracts. Your team reviews the output for a pilot batch to validate accuracy and build confidence.
Configuration & Go-Live: We configure the alerting rules and workflows, and then activate the agent for continuous, ongoing monitoring.

Business Impact in Production

With Kognitos, enterprise are revolutionizing operations and saving millions. Join them on this game-changing journey.

TTX on Kognitos

The company’s centralized approach to railcar management enables it to meet the dynamic needs of the rail industry, providing reliable and cost-effective solutions to its customers.

Dish Network and Boost Mobile on Kognitos

If you grew up watching satellite TV, chances are that Dish Network made it possible. Headquartered in Englewood, Colorado, Dish Network is known for its satellite television, pay-per-view services, and

Top consumer retailers like Amazon, Abecrombie and Fitch, and other major players rely on the work and technology of Century Supply Chain Solutions, a global logistics and supply chain service

Ready to Redefine Your Back Office?

See it in Action
Try Community Edition
Kognitos Full Logo Mark White
Platform
Industries
Solutions
Case Studies
Resources
Company
Contact
X-twitter Youtube Linkedin