For which use case is the Invoice Against Contract Buying process considered best practice?

The Invoice Against Contract Buying process is particularly well-suited for simple services related to recurring activities. This use case typically involves transactions where consistent and predictable services are provided over a time period, allowing for easier recognition of obligations and payment processes linked to pre-established agreements.

In such scenarios, the purchasing requirements are often straightforward, and invoices can be systematically aligned with contracts that stipulate the terms of service delivery and payment. This minimizes discrepancies, enhances the efficiency of the procurement cycle, and supports ongoing supplier relationships.

The recurring nature of these services allows for established pricing and terms within the contract, making it efficient to process invoices as they arise without the need for additional complex negotiations or adjustments. This approach streamlines the procurement workflow and reduces administrative burden while ensuring compliance with contractual obligations, making it a best practice in this context.