Understanding Purchase Contracts — Quantity- and Value-Based Models in Epicor ERP

28 October 2025
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Modern procurement demands flexibility, transparency, and control. Across the EMEA region, organizations increasingly rely on long-term supplier partnerships, making effective contract management essential. 

The SCASYS Purchase Contract Solution, integrated with Epicor ERP, empowers procurement teams to manage two key models - Quantity-Based and Value-Based contracts - providing agility to align with both operational and financial strategies. 

By embedding these models within Epicor, SCASYS transforms contracts from static documents into active control mechanisms that guide every purchase, enhance compliance, and deliver real-time visibility into commitments and spending.

The Importance of Contract Structuring 

Every organization has unique procurement needs. Some manage predictable material requirements with fixed supply quantities, while others operate under defined budgets across varied categories. Without structured contracts, companies face: 

  • Uncontrolled spending and weak budget control 
  • Supply shortages or excess inventory 
  • Manual tracking errors and delays 
  • Compliance gaps during audits 

By structuring contracts on quantity or total value, businesses gain precise control over how purchases are executed, monitored, and reported within Epicor ERP. 

1. Quantity-Based Contracts: Predictable Supply, Stronger Control 

A Quantity-Based Purchase Contract defines the total number of units to be procured within a timeframe. For instance, a manufacturer might commit to buying 50,000 units of steel rods or 10,000 liters of lubricant annually. 

Each purchase order (PO) references the agreed quantity, ensuring procurement stays aligned with supplier commitments. 

How It Works in Epicor 

Within the SCASYS Purchase Contract Solution, total contracted quantities are defined during setup. As POs are released, Epicor automatically tracks the consumed vs. remaining quantity and issues of alerts when limits are reached. 

Key Benefits 

  • Predictable Planning: Streamlines demand forecasting and inventory control. 
  • Supplier Accountability: Ensures adherence to agreed volumes. 
  • Real-Time Tracking: Dashboards display remaining quantities and delivery schedules. 
  • Reduced Manual Oversight: Automatic PO validation against contract terms. 

Ideal for manufacturing, construction, logistics, and automotive industries where predictable supply and material availability are critical. 

2. Value-Based Contracts: Spend Flexibility with Budget Control 

A Value-Based Purchase Contract sets a total monetary limit instead of fixed quantities. For example, an organization might create an AED 500,000 contract for IT services or office supplies over a fiscal year. Multiple POs can be raised under the same contract as long as the total value remains within the agreed limit. 

How It Works in Epicor 

The SCASYS solution allows users to define value-based contracts that automatically track spend utilization. Each PO deducts from the available balance, providing real-time visibility into remaining budget and contract validity. 

Key Benefits 

  • Budget Flexibility: Manage multiple spend categories under a single limit. 
  • Improved Spend Control: Prevents overspending through automated validation. 
  • Simplified Budgeting: Helps finance teams monitor and allocate funds efficiently. 
  • Enhanced Visibility: Enables data-driven decision-making for renewals or renegotiations. 

Best suited for IT services, facilities management, maintenance, and marketing procurement where purchase volumes fluctuate, but budgets are fixed.

SCASYS Features That Support Both Models  

Regardless of contract type, the SCASYS Purchase Contract Solution delivers automation, compliance, and actionable insight inside Epicor ERP: 

  • Automated Validation: Every PO is checked against contract limits before approval. 
  • Dynamic Dashboards: Real-time tracking of remaining quantities, spend, and validity dates. 
  • Approval Workflows: Configurable multi-level approvals for contract creation and PO release. 
  • Alerts & Notifications: Automatic alerts for thresholds, expiries, and budget limits. 
  • Audit-Ready Repository: Centralized digital storage ensures traceability and governance. 
  • Supplier Integration: Through portals like Procqur, suppliers can view contracts, releases, and performance data in real time. 

These capabilities bring end-to-end transparency to procurement and simplify compliance management across the supply chain. 

Choosing the Right Model for Your Business 

Selecting between a quantity-based and a value-based contract depends on procurement priorities and operational structure: 

Business Focus  Recommended Contract Type  Key Benefit 
Stable demand for fixed materials  Quantity-Based  Predictable supply and pricing consistency 
Dynamic purchases under budget constraints  Value-Based  Flexibility and spend control 
Manufacturing or production planning  Quantity-Based  Accurate inventory forecasting 
Service or category-based procurement  Value-Based  Simplified budgeting and renewals 

Many enterprises use a hybrid model, combining quantity-based contracts for materials with value-based agreements for indirect or service procurement. SCASYS supports both approaches seamlessly within one Epicor environment. 

Strategic Benefits of Structured Contracts 

Adopting structured purchase contracts brings measurable organizational impact: 

  • Financial Control: Real-time visibility into commitments and spend utilization. 
  • Operational Efficiency: Automated approvals and validations reduce manual effort and cycle time. 
  • Compliance Assurance: Standardized workflows enforce adherence to policies and audit standards. 
  • Supplier Optimization: Transparent terms improve vendor relationships and accountability. 
  • Decision Support: Data analytics empower better negotiation and renewal strategies. 

With these advantages, procurement evolves from a transactional function to a strategic value driver supporting business growth and governance. 

Conclusion: Flexibility That Drives Procurement Excellence 

Whether managing steady material requirements or dynamic service-based purchases, the SCASYS Purchase Contract Solution for Epicor ERP provides the flexibility and intelligence to handle both effectively. 

By supporting quantity-based and value-based contracts in a unified system, SCASYS enables organizations to maintain control, compliance, and clarity while maximizing Epicor’s capabilities. 

For enterprises across the UAE and wider EMEA region, SCASYS transforms purchase contracts from static agreements into dynamic tools for transparency, accountability, and strategic procurement excellence.