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Open finance skill

Supplier spending concentration

How much do we depend on our largest suppliers?

Add invented spending by supplier and category. Calculate each share of total spend so the owner can review purchasing dependencies.

Records you need

  • ✓Transaction list
  • ✓Consistent supplier names
  • ✓Expense categories

What you get

  • ✓Largest suppliers
  • ✓Largest categories
  • ✓Shares of total spend

Checks performed

  • ✓Spending by supplier
  • ✓Spending by category
  • ✓Share paid to the five largest suppliers

From finding to decision

Which dependency sits behind the biggest supplier total?

A large supplier share may reflect an important supply relationship or how purchases were categorized. Check replacement options, replacement time and whether related suppliers were combined before calling the spending waste.

  1. Check that the transaction sum matches the spend report for the same period.
  2. Use consistent supplier identities. State whether related companies are grouped together.
  3. For the largest groups, review alternative suppliers, contract terms and the work that depends on them.

Evidence ready for review

Show total spend, supplier grouping and omitted purchases alongside each supplier’s percentage of the total.

Who makes the next decision?

Purchasing decides whether concentration needs a backup source, revised terms or no change.

Collect the supporting records from your software

Level diagnostic method reviewed . Apply it to the selected records and accounting policy; the teaching example does not resolve a live account.

Guided synthetic example

See the check from input to decision

A growing contractor relies heavily on one fleet and equipment vendor.

How review effort might be shared

An illustrative allocation is 15% collecting records, 20% applying checks, 10% flagging results, 25% investigating reasons, 20% finance review and 10% choosing an action. These percentages were not measured across engagements. Actual effort varies with data quality, complexity and the issue found.

1

Start with the source records

VendorCategoryTrailing 90-day spendShare
Example FleetVehicles$72,00060%
Example SupplyMaterials$31,20026%
Other vendorsMixed$16,80014%
2

Apply the documented check

Aggregate spend by normalized vendor and category, then calculate each share of total spend.

3

Surface the flagged result

Needs review

Example Fleet represents 60% of trailing 90-day spend.

4

Use recorded finance judgment to analyze possible reasons

At Level, we record the review logic, known explanations, and questions our finance professionals use in this situation. AI applies that documented human judgment to organize the most plausible reasons, without pretending it knows which reason is true.

Possible reasons to investigate

Concentration is not automatically bad. A vehicle purchase cycle may be temporary, while recurring dependence could create pricing or continuity risk.

5

Make the final human judgment

In a Level engagement, a Level finance professional validates the source evidence, challenges the AI-assisted analysis, and decides which explanation is supported.

How much of the spend is recurring?
What happens if this vendor changes terms?
Is concentration buying us better pricing?
6

Make the operating decision

Separate recurring from one-time spend and decide whether alternative vendors or negotiated terms are needed.

Each skill uses an independent synthetic scenario. Shared month labels do not mean the examples describe one company or a single financial period.

Use this system

Start with the example, then inspect the structure

The JSON download is a sample record file to inspect with an AI assistant or developer. It is not a file to upload into your accounting software.

  1. Download the invented input and expected output.
  2. Replace one field at a time with a safe test value.
  3. Compare the result with the expected structure.
  4. Have a finance professional review every exception before acting.

Website example JSON and registry: CC BY 4.0 (attribution required). Downloadable toolkit ZIP: MIT. Each version identifies its own frozen examples.

Developer preview: AI-assistant helper (MCP)

This tool call returns fixed, invented sample records only. It does not connect to your books. Read the setup instructions.

run_synthetic_example {"slug":"spend-concentration-review"}

Human review is part of the system

This check organizes evidence and surfaces exceptions. A person with finance domain expertise still needs to interpret the result, validate the source records, and discuss the operating decision.

Open source does not mean open client data. We publish reusable finance tools, checks, templates, and playbooks. Client records, workpapers, credentials, communications, and private configurations remain confidential.

Use it yourself, or bring us the messy part

Get a one-page plan for checking your records

Tell us where the records stop making sense. We will reply with the first check to run, the records it needs, and the decision that still needs human finance judgment.

Install the free skills yourself

No commitment. We will reply with the first check, the records needed, and the decision a finance lead must make.