How are associated contracts created within the system?

Associated contracts in the system are created through a master contract. A master contract serves as a foundational agreement that can govern multiple associated contracts, providing a structured way to manage various agreements and their terms under a single umbrella. This approach ensures consistency in the contractual obligations and simplifies the management process, allowing for clearer oversight of associated contracts that share the same terms or conditions.

While it is possible to create an individual contract, this typically does not create the same link between contracts that a master contract provides. Additionally, the creation of contracts is not solely based on automating existing contracts, nor is it contingent upon a vendor approval process. The use of a master contract directly facilitates the establishment of associated contracts, enabling organizations to manage their contractual relationships effectively and in an organized manner.