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Vendor Contracts and Invoice Payment

Procure to Pay Process

Requirement Identification

Team members can purchase goods and services on behalf of the company in accordance with the Signature Authorization Matrix and guide to Spending Company Money. However, any purchases requiring contracts must first be reviewed by procurement then signed off by a member of the executive team. Be sure to also check out our guide on Signing Legal Documents.

Vendor and Contract Approval Workflow

Step 1: Request Contract from Vendor

Ask your vendor contact to send you a Word document of their contract with the business terms you’ve agreed upon.

But wait, is this a SaaS subscription? If the answer is yes, BEFORE agreeing to business terms, work with procurement (@a.hansen) and our software buying partner Vendr to ensure that the quoted pricing is competitive. They can help negotiate directly with vendors on both new subscriptions and renewals. It is preferred that we negotiate the best pricing up front to keep our ongoing costs to a minimum across our long-term relationships with vendors. Please reach out to your Finance Business Partner for an introduction to the team at Vendr and CC Procurement.

Addendums to Original Contracts

Step 2: Create a Confidential Issue

Create a new confidential issue in the Finance Issue Tracker and select the appropriate Vendor Contract Template. Specific templates associated with each function and department can be found below. Please ensure that you select the appropriate template i.e. G&A, Sales, Marketing, Field Marketing or R&D. This will ensure the appropriate routing of your request.

If you are requesting approval of a new Master Agreement, please fill out the form completely, with all requested information. Procurement will not approve the request if the request is incomplete and missing information.

For approval of other types of agreements - such as purchase orders on existing agreements, confidentiality agreements, sponsorship agreements, and so forth - contact Legal for a list of necessary information to include with your approval request.

Step 3: Authorizations

Prior to requesting contract review from procurement, GitLab team-members must get approval from other interested departments such as the department head of your department, finance (budgetary authorization) and in some cases security.

  1. Please consult the Authorization Matrix to determine who must sign off on Functional Approval and Financial Approval.
  2. Approval from Finance Ops and Planning for budgeting.

For events, campaigns, or other program expenses where it makes sense to quantify actuals at the time they are invoiced to accounts payable, please include the Campaign Finance Tag as indicated in the issue template.

  1. Consult the Data Classification Policy to understand whether your contract will need security review. Any contracts that will share RED or ORANGE data will need security approval prior to signing. Additionally, an annual reassessment of vendor's security posture is performed as part of the contract renewal.
  2. Complete a Data Protection Impact Assessment; please note that this will be done in partnership with GitLab's Data Protection Officer and reviewed by Security Compliance during the Security Review.
  3. If you are purchasing new software/tools, you also need to get approval from Business Ops.

Assign the issue to the individuals responsible for the necessary authorizations. Authorizations can be completed concurrently. (Do not assign the issue to procurement or the Signer yet.)

After you have obtained Functional and Financial approval, as well as any Security* or Business Ops approval necessary, you are ready to send the contract to Procurement for review. *Please note that if any non-public GitLab data will be processed, transmitted, or stored by the vendor, a review of the vendor's information security program is required in order to obtain Security approval. The security compliance team needs 10 business days to complete this review from the time they receive all necessary documentation from the vendor.

Step 4: Procurement Approval and Signing

After authorizations have occurred, tag @a.hansen – confirming the final version of the Vendor contract is attached – for procurement review and approval. Procurement will engage with legal as/if needed.

If the contract cannot be approved, Procurement will partner with legal to provide redlines and begin the negotiations with the Vendor.

Once the contract is approved, Procurement will re-assign to you so you can prepare the contract for signing.

  1. Create a pdf of the fully approved contract.
  2. Assign your issue to the signer.
  3. Send contract to the signer through your team's shared HelloSign login.

Step 5: Obtain Vendor Signatures

Send the GitLab-signed pdf to the vendor through HelloSign.

Step 6: Upload Fully Executed Contract to ContractWorks.

You will need to upload the fully signed pdf into your department's folder and then use the Vendor Contract template to add tags, following the provided instructions and best practices

If you need access to ContractWorks, please process an access request here.

Invoice Recording and Filing

Once the invoice is received the person responsible for initiating the request must submit the invoice to ap@gitlab.com along with one of the following:

  1. link to the issue that was created to approve the expenditure.
  2. If no issue was created, link to uploaded contract in Contractworks ap@gitlab.com. Accompanying the contract should be email approvals in accordance with the signature authorization matrix.

After the invoice has been approved and filed in Google Drive, the Senior Accounts Payable Administrator will record the invoice in NetSuite and move the document to another folder in Google Drive named "Invoice to Pay."

Payment

The final step in the process is payment. Payment runs are made every Friday. The Senior Accounts Payable Administrator will queue up the payments and send to the Controller for review and approval. Once approved, the Controller submits the payments to the CFO for final approval. Payments are then disbursed and the Senior Accounts Payable Administrator transfers the file to a folder in Google Drive named "Vendor Paid." This marks the end of the Procure to Pay process.

Accounts Payable Performance Indicator

Time to Process Invoices in Tipalti <= 2 business days

The time to submit invoices to the business for approval in Tipalti. The target is <= 2 business days.

Modern Slavery and Human Trafficking Compliance Program

GitLab condemns exploitation of humans through the illegal and degrading practices of human trafficking, slavery, servitude, forced labor, forced marriage, the sale/exploitation of chilren and adults and debt bondage (“Modern Slavery”). To combat such illegal activities, GitLab has implemented this Modern Slavery and Human Trafficking Compliance Program.

Risk Areas and Markets While Modern Slavery can occur in any country and in any market, some regions and sectors present higher likelihood of vioaltions. Geographies with higher incidents of slavery are India, China, Pakistan, Bangladesh, Uzbekistan, Russia, Nigeria, Indonesia and Egypt. Consumer sectors such as food, tobacco and clothing are high risk sectors; but Modern Slavery can occur in many markets.*
(*According to Source: Statista, Walk Free Foundation, https://www.statista.com/chart/4937/modern-slavery-is-a-brutal-reality-worldwide/)

Actions to Address Modern Slavery Risks All vendors, providers and entities providing services or products to GitLab (“Vendors”) are expected to comply with GitLab’s Partner Code of Ethics which specifically addresses Modern Slavery laws. Compliance with the Partner Code of Ethics will be included in Vendor contracts and/or purchase orders going forward. Existing Vendor contracts will be updated with the appropriate language upon renewal.

Those entities who are of higher risk or whom GitLab suspects may be in violation of Modern Slavery laws, may be required to complete an audit. Audits may be presented in the form of a questionnaire or may be an onsite visit. Any known or suspected violations will be raised to Legal and/or Compliance. Failure to comply with Modern Slavery laws will result in a termination of the relationship and GitLab retains all rights in law and equity.

Vendors understand and agree that violations of Modern Slavery laws may require mandatory reporting to governing authorities. GitLab has discretion if and how to best consult with Vendors for purposes of Modern Slavery reporting. GitLab is senstive to and will take into consideration, the relationship and the risk profile of Vendor to ensure that Modern Slavery risks have been appropriately identified, assessed and addressed and that the Vendor is aware of what actions it needs to take.

Assessment of Effectiveness GitLab will review its Modern Slavery and Human Trafficking Compliance Program on an annual basis or sooner if it is determined there is increased exposure or concerns with overall compliance. The Program may be amended from time to time by GitLab, to ensure compliance with the most current Modern Slavery laws and regulations.

Compliance Program Approval GitLab’s Executive Team reviewed and approves this Modern Slavery and Human Trafficking Compliance Program.