Procurement savings a CFO can believe
Every savings figure shows what it's measured against, with deliberately no inflated grand total.
LiveWhat does Savings register with declared basis do? Savings figures survive the audit committee and stop being procurement's most gamed number.
How it works
Each saving must say what it is measured against (its baseline), such as the contract rate or the first quote, with an as-of date, shown beside the figure. Totals are kept apart for each baseline and never added together. Negotiated and actual savings are tracked separately; actual savings use the billed price. Negative savings stay in. Unmeasurable savings say so, never zero.
If a supplier bills above the agreed price, the negotiated saving automatically shrinks to the real one, because actual savings read the bill.
Step by step: how a saving gets recorded
- Buying goes through Kinnow. Quotes come in from suppliers, an order is placed and the supplier's bill is booked, all in the Buy application.
- You choose what to measure against. On the Savings screen, press Recompute and pick the baseline: the contract rate or the first quote. The first quote is the earliest one submitted for that line. A supplier who left a line unpriced never becomes the baseline.
- Each saving is written with its baseline. For every line, Kinnow records the supplier, item, baseline, what was paid, the saving and an as-at date. The baseline sits beside the figure, not in a footnote.
- Negotiated and realised are kept apart. Negotiated is what was agreed at the order. Realised reads the supplier's actual bill. If the supplier bills above the agreed price, the saving shrinks to the real one.
- Totals are per baseline. Each baseline has its own total. Kinnow does not add them, because a contract-rate saving and a first-quote saving answer different questions.
- The CFO reviews. The finance head reads each figure with its baseline, including the negative ones, and can answer an audit committee line by line.
See your own savings against contract rates. Send us a purchase register and a few supplier contracts.
What you see on screen
The Savings screen is headed "What you saved, and what each figure is measured against". It shows:
| Column or section | Meaning |
|---|---|
| Measured against | The baseline for the row |
| Stage | Negotiated or Realised, each with a one-line hint |
| Supplier, Item | Which line the saving is on |
| Baseline, Paid, Saving | What you compared with, what you paid, and the difference |
| As at | The date the saving was worked out |
| Cannot be measured | The baselines Kinnow will not compute, each with the reason |
The screen states: "There is no single savings total, on purpose - each basis answers a different question and adding them gives a number nobody can defend."
Who uses it
- CFO or finance head: reads the register before a board or audit-committee meeting.
- Purchase head: sees which negotiations held up on the bill and which did not.
- Auditor or CA: can trace a saving to its baseline and as-at date.
Related
Part of Sourcing and RFQs. See also supplier tenders with every choice explained, five named kinds of off-contract spend and from supplier quote to purchase order.
Questions
What is Savings register with declared basis in Kinnow?
Every savings figure shows what it's measured against, with deliberately no inflated grand total.
What changes for the business?
Savings figures survive the audit committee and stop being procurement's most gamed number.
Is it available today?
Yes, it is live.
Why is there no single savings total?
Adding a contract-rate saving to a first-quote saving gives a number that ties to its rows and answers no real question. Kinnow totals each baseline separately.
Are negative savings shown?
Yes. A purchase above its baseline appears as a negative row. Dropping them would make every total look better than it was.
More in the Answers in seconds
Ask your business anything
One search box on every screen finds records instantly and answers questions from data you're allowed to see.
Answers in seconds · Code on Wages restructuring agentSee who fails the new Labour Codes
See which salary structures break India's new Labour Codes and what fixing each one will cost.
Answers in seconds · Asset operating log + Operating Efficiency WatchCatch fuel theft and failing generators
Daily generator logs reconcile fuel to the tank reading and flag a machine whose output per litre is falling.
Answers in seconds · Clause extraction → Obligation ledgerContract promises tracked before they're broken
Kinnow reads your contracts, suggests key clauses, and tracks every promise, from service levels to reports, before breach.
Answers in seconds · Reconcile against your documentsCheck a spreadsheet against your signed paperwork
Upload a spreadsheet; Kinnow checks every row against your documents and lists what disagrees.
Answers in seconds · Vault (Signals → Vault → Compose)One secure home for company documents Live in part
Every company gets a controlled document store: no duplicates, every access logged, shares you can revoke.
Tell Kinnow what slows you down.
Answer three questions. Get the applications, the agents and a two-week plan for your business.