BIZOPS-44 Order Agreements Handling

What is this control about?

“Order Agreements Handling” control ensures proper management and processing of order agreements, which are legally binding contracts between the organization and its customers or vendors. The control aims to mitigate risks and promote efficiency in the order management process.

Available tools in the marketplace

EtQ Reliance IQS

Available templates

TrustCloud has a curated list of templates, internally or externally sourced, to help you get started. Click on the link for a downloadable version:

• Quality Management System (QMS) Policy Template

Control implementation

Here are some steps to consider when implementing the control of a Order Agreements Handling program:

• Define Policies and Procedures:

– Identify and document the organization’s policies and procedures related to order agreement handling.

– Clearly define roles and responsibilities for different stakeholders involved in the process, such as sales teams, legal departments, and contract administrators.

– Establish guidelines for contract review, approval, execution, and storage.

• Select and Customize a System:

– Evaluate and select a suitable contract management software or system based on the organization’s requirements and budget.

– Customize the system to align with the organization’s specific workflows, terminology, and data fields.

– Configure access controls and permissions to ensure appropriate user access levels.

• Establish Document Standards:

– Define standard templates and formats for order agreements to maintain consistency and ease of processing.

– Establish guidelines for naming conventions, version control, and document metadata.

– Determine the required information to be captured in order agreements, such as customer details, pricing, deliverables, and contract duration.

• Implement Document Lifecycle Management:

– Establish a process for the creation, review, approval, and execution of order agreements.

– Ensure proper documentation and retention of all related communications, revisions, and approvals.

– Implement version control mechanisms to track changes and maintain an audit trail of document revisions.

• Enable Collaboration and Workflow Automation:

– Configure the contract management system to automate workflows, such as routing agreements for review and approval.

– Enable notifications and alerts for approaching contract expiration dates, renewal deadlines, or other critical milestones.

– Foster collaboration by providing a platform for stakeholders to communicate, comment, and collaborate on order agreements within the system.

 

What evidence is the auditor looking for?

Most auditors, at a minimum, are looking for:

• Order Agreements:– Copies of order agreements, including purchase orders, sales contracts, service agreements, and any related amendments or addendums.- These agreements should clearly outline the terms, conditions, and obligations between the organization and its customers or vendors.

  – Auditors may review these documents to ensure completeness, accuracy, and compliance with internal policies and legal requirements.

Evidence example

For the suggested action, an example is provided below:

• Order Agreements

Screenshot source