Contract Management

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CONTRACT MANAGEMENT — Q&A

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Q: How does Fincelo extract data from an uploaded contract? Upload triggers a 4-step pipeline:

1. Text extraction (PDF/DOCX parsing)
2. Claude AI reads the text and extracts 12 key fields: customer name, ARR, TCV, start date, end date, seats, billing schedule, credit period, governing law, renewal clause, auto-renewal flag, escalation clause
3. Each field gets a confidence score (0–100%) — calibrated against historical extraction accuracy for that field type
4. Fields below 80% confidence are flagged for human review

The extraction uses prompt augmentation, not ML retraining. Every time a user corrects an extraction, Fincelo stores the miss and injects it as a few-shot example on the next similar contract. Accuracy compounds over time.

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Q: What happens when a contract has conflicting terms — email says one ARR, PDF says another? Fincelo surfaces both values side by side in the reconciliation screen. The CFO or finance manager chooses which value is accepted. The chosen value is locked with their name and timestamp. A reconciliation_audit record is created for every field resolution. Fincelo never auto-resolves conflicts silently.

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Q: What is the CRM reconciliation flow? When a deal is marked Closed Won in the CRM (Salesforce / HubSpot):

1. Fincelo fetches the deal via webhook
2. A crm_deals record is created
3. Finance is prompted to upload the signed contract
4. AI extracts the contract
5. Fincelo compares 5 fields: ARR, TCV, implementation fees, tenure, licences
6. Any discrepancy > configured threshold is flagged
7. Finance resolves each discrepancy — contract or CRM value wins
8. On full resolution, RECONCILIATION_APPROVED event fires downstream

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Q: What are contract obligations and amendments? Contract obligations are non-billing commitments in the contract: SLA reviews, security audits, compliance certifications, executive reviews (QBRs), price review dates, renewal notice deadlines. Fincelo tracks due dates and sends alerts at 90/60/30/7 days. Amendments are formal changes to existing contracts — seat expansions, price renegotiations, term extensions. Each amendment creates a new version record with a full snapshot of what changed (previous_values vs new_values). Fincelo maintains a complete version history with AI-extracted diffs.

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Q: How does the contract risk score work? Each contract gets a risk score from 0–100 calculated from 6 factors: 0–30 = Low · 31–60 = Medium · 61–80 = High · 81–100 = Critical. AI generates a risk summary and up to 5 recommendations per contract.

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