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To use the Advanced Subcontractor feature, you must add the subcontractors or vendors to the job and assign the subcontractor to a cost code.
When  When the vendor's invoice arrives for payment, you create a payables transaction entry and distribute the invoice to the job and cost code. If you selected the Pay When Paid setup option, the voucher is put on payment hold. You can release the hold on the payables transaction after you have been paid. Once the subcontractor's job is complete, you generate retention invoices. Note:

Note

Editing Accounts Payable subcontractor retention is not supported. The Advanced Subcontractor Module is not updated when an Accounts Payable subcontractor transaction is edited.

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When the vendor's invoice arrives for payment, you must create a payables transaction and distribute the invoice to the correct job and cost code. This allows retention to be withheld.

  1. Choose Transactions > Purchasing > Transaction Entry.
  2. Complete the Payables Transaction Entry window. See the Microsoft Dynamics GP Purchase Order Processing Manual for more information.
  3. Choose Distributions.
  4. From the Product Indicator drop-down list, choose Job Cost.
  5. Enter a Job Number and Cost Code for the subcontractor. The expense amount for the cost code in the Debit field appears as the default. If you enter a return or a credit memo, the amount appears in the Credit field. The cost code displays automatically if you set up default payables cost codes in Job Cost and assigned the cost code to the job by distribution type.
  6. Enter amounts, complete the distribution, and choose OK. See Entering payables transactions for details. Retention will be automatically calculated and distributed.
  7. In the Payables Transaction Entry window, choose Post.

Note: While intercompany transactions can be used with Job Cost subcontractors, information such as retention and master subcontractors will not be updated in the destination company.Separate accounts payable debit distribution amounts are not created for retention amounts. Instead, the accounts payable credit account is decreased by the amount of the retention.

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If the Pay When Paid setup option was marked and a vendor's invoice has been distributed to a job and a cost code, the transaction record is marked on payment hold. You can release the hold on the payables transaction after you have been paid by the customer and are ready to pay the subcontractor. If the subcontractor to which the job is assigned is marked on hold in the Subcontractors Maintenance window, you cannot release the payables hold.

  1. Choose Transactions > Job Cost > Subcontractor Payments.
  2. Choose a Job.
  3. In the scrolling window, choose Mark All or mark individual transactions to release. To view transaction information, choose the document number of a marked transaction and zoom on the Apply to Document field. In the Payables Transaction Entry Zoom window, you can choose the Distributions button to view distribution information.
  4. Choose Process in the Subcontractors Payments window. A message appears asking you if you are sure you want to process the payments. Choose Process. The hold on the payable is released so the subcontractor can be paid with the next check run.

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Once the subcontractor's job is complete to everyone's satisfaction, the retention amount can be paid. If the subcontractor to which the job is assigned is marked on hold in the Subcontractors Maintenance window, then retention invoices will be marked on hold and cannot be processed. See Choose subcontractor options.

  1. Choose Transactions > Job Cost > Subcontractor Retention.
  2. Choose a Job.
  3. In the scrolling window, mark individual retention invoices or choose Mark All to create retention vouchers in Payables Management. To view information on a transaction, choose the document number of a marked transaction and zoom on the Apply to Document field. In the Payables Transaction Entry Zoom window, choose Distributions to view distribution information.
  4. Choose Process in the Subcontractors Retention window. A message appears asking if you are sure you want to process the retention transactions. Choose Process. This creates a payables batch with the user ID as its name. A payable voucher is created for each marked item.
  5. Post the batch in Payables Management. See the Microsoft Dynamics GP Payables Management Manual for more information.

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After the subcontractor's job is complete and retention invoices have been generated, the Subcontractors Maintenance window is updated to record the vendor and retention invoices.
The Vendor Invoices field shows the total of all vendor invoices posted. The Retention Withheld field shows the total retention amount of all posted invoices. The Retention Invoices field represents the retention invoices that have been processed. The Total field shows the total vendor invoices.

  1. Choose Cards > Job Cost > Job.
  2. Choose a job, then choose Subs/Vendors.

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You can run the reconcile procedure for jobs with subcontractors or vendors to verify the information in transaction open files. Reconciling adjusts the totals in the master files if a discrepancy exists, and identifies posted transactions that contain invalid data.
You can reconcile for a specific job, a range of jobs, or all jobs that have subcontractors.
Note: Back up your Job Cost data files before running reconcile. Make sure no one is logged into Microsoft Dynamics GP when you reconcile Job Cost data files. If other users are logged in, an alert message appears, and the Job Cost reconcile process will not run to completion.

  1. Choose Microsoft Dynamics GP > Tools > Utilities > Job Cost > Reconcile Subcontractors.
  2. Use the lookup buttons in the From and To fields to choose a range of jobs.
  3. Choose Insert >>.
  4. Choose Reconcile.
  5. Choose Yes to the message asking if you want to reconcile.

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The Purchase Order Processing module (POP) integrates with the Advanced Subcontractor feature. The integration allows retention to be withheld from purchase order invoices.
You must complete the following procedures before using POP with the Advanced Subcontractor feature.

Step 1:         Enter a purchase order

  1. Choose Transactions > Purchasing > Purchase Order Entry.
  2. Complete the Purchase Order Entry window as usual. See the Microsoft Dynamics GP Purchase Order Processing Manual for more information. In addition, complete the following fields:
    • Vendor IDEnter the vendor you have set up for retention.
    • Product IndicatorChoose Job Cost from the drop-down list.
    • Job No.Choose a job that has the subcontractor/vendor assigned to one of the job's cost codes.
    • Cost CodeEnter the cost code for the job.

Step 2:         View the retention percentage
Choose the expansion button in the Item field in the Purchase Order Entry window to open the Purchase Order Item Detail Entry window.
The retention percent displays in the Retention field.
Step 3:         Enter a receipt

  1. Choose Transactions > Purchasing > Receivings Transaction Entry.
  2. Complete the Receivings Transaction Entry window. See the Microsoft Dynamics GP Purchase Order Processing Manual for more information. If this is a shipment/invoice receipt, you can edit the retention percentage. If this is a shipment receipt, you cannot edit the retention percentage. The extended cost of the item multiplied by the retention percent determines the amount to retain from the transaction.

Step 4:         Enter an invoice.
You must enter an invoice for shipment receipts.

  1. Choose Transactions > Purchasing > Enter/Match Invoices.
  2. Complete the Purchasing Invoice Entry window. See the Microsoft Dynamics GP Purchase Order Processing Manual for more information. You can change the retention percentage for each line item if the item is matched to only one shipment document. For items matched to more than one shipment document, choose the expansion button in the Matched to Shipment field to open the Match Shipments to Invoice window.

Step 5:         View the result in Job Cost

  1. Choose Cards > Job Cost > Job.
  2. Choose a job, then choose Subs/Vendors. The Total field reflects the retention withheld.

Step 6:         View the result in Microsoft Dynamics GP

  1. Choose Inquiry > Purchasing > Transaction by Vendor. The payables transaction reflects the retention amount.
  2. Choose an invoice and zoom on the Document Number field. The total amount of the payable displays in the Payables Transaction Entry Zoom window.

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The Subcontractor Status window summarizes all contract, retention, and invoice amounts for a subcontractor.

  1. Choose Inquiry > Job Cost > Subcontractor Status.
  2. Use the lookup to choose a Vendor ID. The following information displays for the selected subcontractor:
    • Total Original Contract AmountDisplays the total of the original contract amounts of open job contracts.
    • Total Change OrdersDisplays the total of all change orders.
    • Total Contract AmountDisplays the total of open job contracts.
    • Total Vendor InvoicesDisplays the total of all purchasing invoices (from Accounts Payable or Purchase Order Receivings) that have been processed against open jobs.
    • Remaining Contract AmountDisplays the total amount remaining on the contract.
    • Total Retention WithheldDisplays the total of all retention withheld against purchasing invoices.
    • Total Released Retention InvoicesDisplays the total of all retention invoices generated. Invoices are generated to pay the subcontractor for retention withheld against purchasing invoices.
  3. Choose the Stop-and-Go Light indicator in the Subcontractor Status window to open the Subs Job Summary window where you can double-click a job to open the Subcontractors Maintenance window. A red light indicates the subcontractor is on hold for a job. A green light indicates the subcontractor is not on hold.

You can add jobs, cost codes, and required dates for the subcontractor using the Add Jobs button. See Adding subcontractors/vendors to a job.
You can create a purchase order for the subcontractor using the Create PO button. See Withholding retention on purchase order invoices.
Note: When you create a purchase order for a subcontractor or master subcontractor, the original contract amount is not updated for the subcontractor. You must update the original contract amount manually in the Subcontractors Maintenance window.
You can choose the printer button in the Vendor field to choose a subcontractor report to print. See Subcontractor reports in the Dexterity reports section of the Signature Reports documentation for more information.

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The Job Transaction Inquiry - Vendor window allows you to view whether your vendors and subcontractors have been paid for a job. This window displays all amounts billed from and paid to a vendor per job, including the following:

  • Invoices from vendors that are not subcontractors
  • Invoices from transactions without a purchase order, including transactions originating from contract agreements and payables transactions entries
  • Payments applied to subcontractor retention ("retention released") invoices

In addition, the new Subcontractor Transaction Detail report shows the details of payments billed, retained, and paid to subcontractors. This report is not currently designed to work if you use tax on Contract Agreements.
Note: To display purchase order payment information correctly, we recommend having just one line per PO, but if you have multiple lines, each line must have its own receipt and each receipt must have its own invoice.

  1. Choose Inquiry > Job Cost > Job Status, and choose a job. The Job Status window displays job costs by cost code.
  2. Use the Vendors button to open the Job Transaction Inquiry - Vendor window. This button is disabled if you do not have the Advanced Subcontractor feature registered.
  3. Use the following fields to filter and sort the vendor transactions that appear in the scrolling window:
    • Vendor IDThe lookup shows vendors only for the selected job. All vendors that have a payables voucher associated with the job will display in the lookup. A vendor with no transactions may appear if that vendor is set up as a subcontractor for the job.If a job has no vendors or subcontractors, the lookup displays all vendors in the system, without any filtering.
    • JobThe job defaults from the Job Status window.
    • Sort ByYou can sort transactions by Document Number, or by Date then Voucher Number.
    • Include HistoryThis check box defaults as marked; unmark the check box if you do not want any historical transactions to appear in the scrolling window.

If no transactions appear in the scrolling window, it may be because

  • The selected vendor is set up as a subcontractor on the job, but there are no transactions for the vendor.
  • The selected vendor has a transaction in the work table and no posted invoices.
  • The selected vendor has only historical transactions, and the History check box is not marked.

The following information displays in the scrolling window for each vendor transaction:

  • TypeIndicates whether the transaction is an invoice or a credit memo.

Note: Returns display as credit transactions. You can zoom on the Document Number to view the details of the return on the Returns Transaction Inquiry Zoom window.

  • Document NumberShows the document number and allows you to zoom to the Payables Transaction Entry window, or If the transaction is a POP Shipment/Invoice, the Receiving Transaction Inquiry window opens. If the transaction is a POP Receivings Entry, the Purchasing Inventory Inquiry window opens.
  • DateThe invoice date is used when you choose to sort transactions by Date (then Voucher Number).
  • Amount InvoicedThis is the total amount of the transaction, including retention (Invoice Gross of Retention).
  • Document AmountThis is the amount of the transaction, not including retention (Invoice Net of Retention). Tax is included for subcontractor invoices, and/or for vendors if tax was applied to the job.
  • Amount RemainingThis shows the invoice amount, minus any payments applied. You can zoom to the Payable Apply Zoom window for payment detail. You can choose a transaction and zoom on the Document Number to view the details of the agreement. You can also zoom on the Amount Remaining to view details of the payable applied. You can expand the results in the scrolling window to view the following information as well.
  • Voucher NumberWhen transactions are sorted by Date, the voucher number is also the secondary sort field.
  • Transaction DescriptionThis description defaults from the invoice.
  • Retention WithheldIf the vendor is a subcontractor, this field displays the original amount of retention that was withheld. This amount does NOT decrease as retention is paid.
  • Retention RemainingIf the vendor is a subcontractor, this field displays the amount of retention that remains to be paid. If a subcontractor has been paid, the amount remaining is zero.

Note: If a POP or PM invoice has multiple line items, when any line on the invoice is assigned to the job, the entire transaction amount appears on this window. However, all line items may not be related to the job. You can zoom on the invoice for line detail. Likewise, a credit memo displays when it was assigned to the selected job in the Distribution window, even if it was not applied to this job. You can zoom on the credit memo to see which job it was applied to.
Choose Print to print the Job Transaction Vendor - Inquiry report, which includes all the detail from the window for payments billed, retained, and paid to subcontractors.

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You can set up master subcontractors as templates for vendors used on multiple jobs. If you use the same subcontractor on several jobs, you don't have to set up the subcontractor each time you create a job. Instead, you can create a master subcontractor and assign the jobs to that master subcontractor.
With subcontractors, you assign a subcontractor to a job. Therefore, the relationship of the subcontractor and cost codes to a job is as follows:
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Subcontractor
With the master subcontractor feature, the relationship of a master subcontractor to a job and cost codes is as follows:
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Master subcontractor
When you create a master subcontractor using the Master Subcontractors Maintenance window for a vendor that already exists as a subcontractor, that master subcontractor still exists as a subcontractor. The main differences are:

  • The master subcontractor record is the parent record of the cost code and jobs.
  • When you first create a master subcontractor, some information is copied to the Subcontractors Maintenance window and sub windows. See Create the master subcontractors..

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  1. Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Subcontractor Setup > Subcontractor Options.
  2. Mark the Use Master Subcontractors check box.
  3. Mark the Track Insurance Dates in Detail (Many per Job) check box to enable the Insurance Dates button in the Subcontractor Status and Master Subcontractor Maintenance windows and the ellipsis button in the Insurance Certificate field in the Subcontractors Dates window. You can enter insurance company information for each master subcontractor, including policy numbers and effective dates. Insurance fields are user-definable. See Set up master documents. See Entering insurance dates for a master subcontractor for information on tracking insurance information.
  4. Choose Save.

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  1. Choose Cards > Job Cost > Master Subcontractor.
  2. Complete the following fields, as necessary.
    • Master Sub IDUse the lookup to choose a vendor.
    • Vendor Contract TypeChoose a vendor contract type from the drop-down list. Choices are NTE, Lump Sum, and Unit Price.
    • Contract Date, Purchase Order #Enter the contract date and purchase order number.
    • Retention %If the master subcontractor already has a retention percentage entered for any cost codes, a message appears telling you that the subcontractor cost codes will be updated with the new retention amount. Choose Continue to update the cost codes or Cancel to not update the cost codes.
    • Mod Rate, User-definedThese fields are informational only.
    • Submit Date, Resubmit Date, Approved Date, Disapproved DateEnter the submit date, resubmit date, approved date, and/or disapproved date.
  3. Choose Save.

The Stop-and-Go Light indicator indicates whether the subcontractor is marked on hold in the Subcontractors Maintenance window. A red light indicates the subcontractor is on hold for a job. A green light indicates the subcontractor is not on hold. The Hold check box in the Master Subcontractors Maintenance window isn't used.
You can also do the following from the Master Subcontractors window:

  • Assign a job to a master subcontractor.
  • Assign a cost code to a master subcontractor.
  • Enter insurance dates for a master subcontractor.
  • Create a purchase order for a master subcontractor.
  • Specify required documents for a master subcontractor.
  • Manage lien waivers for a master subcontractor.

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You can assign jobs to a master subcontractor using the Add Jobs button in the Master Subcontractors Maintenance window.
When you assign a job to a master subcontractor for the first time, information from all the fields in the Master Subcontractors Maintenance window is copied to the corresponding fields in the Subcontractors Maintenance window for that vendor. This information is copied only if a job was not previously assigned to the subcontractor in the Subcontractors Maintenance window.
Note: If you save the Master Subcontractors Maintenance window, then reopen the window to make changes, none of the changes will copy to the Subcontractors Maintenance window.

  1. Choose Cards > Job Cost > Master Subcontractor.
  2. Choose a subcontractor, then choose Add Jobs.
  3. Choose a job and complete the Subcontractors Maintenance window. See Adding subcontractors/vendors to a job.
  4. Choose Save.

To view a list of jobs assigned to a master subcontractor, choose the Stop-and-Go Light indicator in the Master Subcontractors Maintenance window.

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You can assign cost codes directly to a master subcontractor. Once a job is assigned to a master subcontractor, the cost codes are automatically copied to the subcontractor record assigned to that job.

  1. Choose Cards > Job Cost > Master Subcontractor.
  2. Choose a subcontractor, then choose the Cost Codes button.
  3. Enter a Cost Element. The default is 2 (Materials).
  4. Use the lookup to choose a Cost Code, or choose the Add Cost Codes button to choose from the master cost code list.
  5. If you do not want to print lien waivers for this cost code, mark the Don't Print Lien Waivers check box.
  6. Choose Save.

When you assign a cost code to a master subcontractor, you can view that job/subcontractor/cost code association in the Subcontractor Cost Codes window.

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You can enter insurance company information for each master subcontractor, including policy numbers and effective dates. If a policy expires, the vendor and all jobs the vendor is assigned to are put on hold.

  1. Choose Cards > Job Cost > Master Subcontractor.
  2. Choose a subcontractor, then choose Insurance Dates.
  3. Complete the following fields:
    • RequiredMark the insurance policies that are required for this master subcontractor.
    • Starting, Ending, ReceivedEnter the Starting, Ending, and Received dates. The ending date will be copied to the Required Date column in the Subcontractor Dates window for this subcontractor. The required date in the Subcontractor Dates window is automatically set to be the earliest ending date of the required insurance types in the Insurance Dates window. This date is copied to all jobs to which the subcontractor is assigned. If you do not enter an ending date for an insurance type that is marked as required, the subcontractor will be on hold.
    • Required, AvailableEnter coverage amounts. These fields are informational only.
    • Company, Policy NumberFor each insurance company, enter the company name and policy number.
  4. Choose Save.

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  1. You can create a purchase order for a master subcontractor from the Master Subcontractors Maintenance window.
  2. Choose Cards > Job Cost > Master Subcontractor.
  3. Choose a Subcontractor, then choose Create PO.
  4. Complete the Purchase Order Entry window. See the Microsoft Dynamics GP Purchase Order Processing Manual for more information. The Vendor ID fills automatically from the Master Subcontractors Maintenance window.
  5. When entering a purchase order for a master subcontractor, if you choose a job to which the master subcontractor is not assigned, a message displays telling you that the selected vendor is not a subcontractor for the selected job. This allows you to assign that subcontractor to that job. Choose Yes to add the master subcontractor to the job, or No to not add. If you choose Yes, the Subcontractors Maintenance window opens. Complete the window.

Note: If retention needs to be withheld, make sure you enter a contract amount in the Original Contract Amt field in the Subcontractors Maintenance window. Otherwise, retention will not be withheld from Purchase Order Processing or Payables Management.

Automatically adding cost codes to a subcontractor on a purchase order

To automatically add cost codes to a subcontractor when entering a purchase order, mark the Automatically Add Purchase Order Cost Code to Subcontractor check box in the Subcontractor Options window. This applies to cost codes assigned to a job that are not linked to a subcontractor in the Subcontractors Maintenance window.
You can automatically add cost codes from the Purchase Order Entry window and Item Detail Entry window.

Specifying required documents for a master subcontractor

You can specify if a document pertaining to this master subcontractor is required.

  1. Choose Cards > Job Cost > Master Subcontractor.
  2. Choose a subcontractor, then choose Master Subcontractor Documents.
  3. Mark the documents that are Required and choose Save.
  4. A message appears asking if you want to save the changes in this window only or save the changes in this window and roll down the changes to the subcontractor record associated with the job or jobs. Choose Save or Rolldown.

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You print lien waivers for subcontractors as part of the payables check process. You can also track multiple lien waivers for the same job.
Note: If the Pay When Paid option is marked in the Subcontractor Options window, you must release the invoices for payment before you can print lien waivers. See Releasing a payables hold.
Printing lien waivers involves the following:
Step 1: Set up lien waivers.
Step 2: Print lien waivers with checks.
Step 1:         Set up lien waivers.

  1. Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Subcontractor Setup > Subcontractor Options.
  2. Mark the Track Multiple Lien Waivers per Job/Subcontractor check box.
  3. To specify a minimum amount that a check must contain before a lien waiver can be printed, enter that amount in the Print Lien Waiver for Job When Check Payment to That Job Exceeds field. This amount should be less than the check amount in Payables Management. If this amount is zero, which is the default, a lien waiver will print for all invoices.
  4. Choose Save.

Step 2:         Print lien waivers with the checks.
You can print lien waivers as part of the check posting process in Microsoft Dynamics GP. You can also restrict the printing of lien waiver for specific cost codes. See Assigning a cost code to a master subcontractor for more information.
Note: Completed lien waivers are generated only for payables documents that are fully applied. If a payable has been processed that is not fully applied, a blank lien waiver will appear.
Note: Also, if you post checks using series posting or master posting, the Print Lien Waivers window will not appear.

  1. Process and print checks as you normally would. See the Microsoft Dynamics GP Payables Management Manual for more information. When the check processing is finished, the Print Lien Waivers window opens.

Note: There might be a slight delay before the Print Lien Waivers window opens.

  1. Enter a starting and ending check number for checks that have just been printed.
  2. Choose Process.

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You can view lien waivers, mark lien waivers as received, and reprint lien waivers using the Manage Lien Waivers window.

Receiving lien waivers

  1. Choose Cards > Job Cost > Master Subcontractor.
  2. Choose a subcontractor and choose Manage Lien Waivers.
  3. Complete the following fields:
    • Job NumberChoose a job.
    • Vendor IDThis field defaults to the vendor selected in the Master Subcontractors Maintenance window or Subcontractors Maintenance window.
    • DisplayChoose the Unreceived radio button.
    • Date ReceivedMark this check box for the lien waiver(s) you want to receive, or choose Mark All.
  4. Choose Process. To unreceive lien waivers, unmark the Date Received check box and choose Process. To unreceive all lien waivers, choose Unmark All before Process.

Viewing received lien waivers

  1. Choose Cards > Job Cost > Master Subcontractor.
  2. Choose a Subcontractor and choose Manage Lien Waivers.
  3. Choose a job in the Job Number field. The Vendor ID defaults to the vendor selected in the Master Subcontractors Maintenance window or Subcontractors Maintenance window.
  4. Choose the Received radio button.
  5. To view the details of a check, mark the Date Received check box, then zoom on the Check Number field.

Reprinting lien waivers

  1. Choose Cards > Job Cost > Master Subcontractor.
  2. Choose a Subcontractor and choose Manage Lien Waivers.
  3. Choose a job in the Job Number field. The Vendor ID defaults to the vendor selected in the Master Subcontractors Maintenance window or Subcontractors Maintenance window.
  4. In the scrolling window, mark the check box next to the check(s) you want to reprint.
  5. Choose Reprint. The Print Lien Waivers window opens. The starting and ending check numbers default.
  6. Choose Process. The Printed field in the Manage Lien Waivers window updates with the current date for the lien waivers just printed.

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Subcontractor feature users can transfer their information to the Advanced Subcontractor feature using a utility. Run this utility if you had been using the regular subcontractor feature but now use the Advanced Subcontractor feature.
The utility will create subcontractor cost code records in all the required places to use the Advanced Subcontractor feature.

  1. Choose Microsoft Dynamics GP > Tools > Utilities > Job Cost > Subcontractor Transfer.
  2. Use the lookup buttons in the From and To fields to choose a range.
  3. Choose Insert >>.
  4. Choose Transfer.
  5. Choose Yes to the message asking you to back up your Job Cost files before running the utility.

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Subcontractor contract agreements allows you to create and manage contracts for subcontractors - for multiple jobs - and to track change orders and payments to those subcontractors. When you create a contract, you distribute the contract amount across the relevant cost codes. These cost codes must be assigned to the job.
Note: You must have purchased the Advanced Subcontractor feature to use this function.

  • A contract can have one of four statuses: Pending, Confirmed, Closed and Canceled. Confirmed is the active status, and the only one in which you can create change orders and post payments. Pending allows you to start entering information prior to a contract being finalized and approved.
  • Retention can be applied per cost code.
  • A subcontractor can have multiple contracts on one job.
  • Unposted costs are reflected in committed costs in Job Cost
  • A contract can be closed, even if there is retention left to be paid.

Suppressing taxes for contract agreement AP transactions

In some non-US locales, taxes are suppressed when posting to jobs. You can suppress taxes on AP transactions created for contract agreements as well.

  1. Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Job Cost Setup > Setup Options. The Job Cost Setup Options window opens.
  2. Mark Suppress Contract Payment tax update to Job Cost and Service Management.
  3. Choose Save.

Customizing labels for contract agreement user-defined fields

  1. Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > User-Defined Label Setup > Contract Agreement. The User Defined Contact Agreement window opens.
  2. Enter the names for the desired fields in the left column. Choose Save when finished.

Creating subcontractor contracts

When you create a contract agreement, it defaults to a Pending state. This allows you to enter information before a contract is finalized, at which time, you would change the contract to Confirmed.

  1. Choose Cards > Job Cost > Contract Agreement. The Contract Agreement window opens.
  2. Choose a Contract Vendor, and enter a Contract Number and Contract Name.
  3. Complete the following fields; some are filled automatically by the system and cannot be edited.
    • Contract StatusDefaults to Pending. As soon as the Contract Agreement window is filled in and saved, you can change the status to Confirmed - the status used when the contract is active; payments and change orders can be created only if the contract is Confirmed.Canceled means the contract will no longer be active, meaning no further activity is allowed and contract cannot be reversed. Closed means the contract has been complete fulfilled (all payments made).
    • Original Contract AmountEnter the total original contract amount. Once the contract status is Confirmed, the contract amount can be changed only with change orders.
    • Change OrdersFills automatically with the sum of all change orders applied to this contract.
    • Contract To DateFills automatically with the amount of the original contract amount plus change orders minus any payments made.
    • Tax ScheduleEnter the tax schedule to be used with this contract.
    • Retention %Enter the retention percent that will be withheld from payment until services are favorably satisfied. When you assign cost codes to this contract, you can enter unique retention percentages for each cost code, if necessary.
    • Estimated % CompleteIf you want to track estimated completion percentage, enter it here. This field is not updated by the system.
    • Scheduled Start/Completion DatesEnter the start and completion dates of the contract agreement.
    • User-Defined fieldsUser-defined fields are used to store additional information. If your organization has defined these, consult with your Manager or Supervisor to determine if these are required.
  4. Save the window. When a Confirmed contract agreement is saved, the costs become committed costs in Job Cost.
  5. To distribute the contract amount to cost codes, choose the Add Cost Codes button. The Available Contract Cost Codes window opens.
  6. Choose a Job Number. The available cost codes appear.
  7. Choose the cost codes to distribute. You can multi-select several by using CTRL-click and SHFT-Click. After selection, choose the Select button. The window closes and the cost codes appear in the Contract Agreement window.

Choosing costs codes

  1. In the Contract Cost Codes scrolling window, you can specify a Retention% and Cost Code Cost; this cost is the amount of the total contract amount you want to apply to this cost code.
  2. The total of the distributed cost code amounts MUST equal the total contract amount; otherwise, you will receive a message and will not be able to save the contract agreement.
  3. When finished distributed the contract amount, choose Save. When you are satisfied with the information entered and ready to move forward with the contract agreement, change the Contract Status to Confirmed, then Save again. The Change Orders and Payments buttons will be enabled.

Note: While a contract is Pending, you can make changes and save as many times as you like, without affecting costs or balances. Only after confirming a contract will costs and amounts be updated.

Creating change orders for a contract agreement

Just as you can for jobs, you can create change orders for contract agreements and assign them per cost code.

  1. Choose Cards > Job Cost > Contract Agreement. The Contract Agreement window opens.
  2. Choose a contract agreement, then choose the Change Orders button at the top of the window. The Contract Change Order Inquiry window opens. Any existing change orders are displayed in the window.
  3. To create a change order, choose Add Change Orders at the bottom right of the window. The Contract Agreement Change Order window opens.
  4. Enter a Change Order Number. This number must be unique for every change order.
  5. Enter a Change Order Amount. Retention % defaults from the Contract Agreement window.
  6. To distribute the contract amount to cost codes, choose the Add Cost Codes button. The Available Contract Cost Codes window opens.
  7. Choose a Job Number. The available cost codes appear. Using the lookup, you can choose to display all cost codes or only the cost codes already assigned to the contract.
  8. Choose the cost codes to distribute. You can multi-select several by using CTRL-click and SHFT-Click. After selection, choose the Select button. The window closes and the cost codes appear in the Contract Agreement Change Order window.
  9. In the Change Order Contract Cost Codes scrolling window, you can specify a Retention% and Cost Code Cost; this cost is the amount of the total change order amount you want to apply to this cost code.
  10. The total of the distributed cost code amounts MUST equal the total change order amount; otherwise, you will receive a message and will not be able to save the change order.
  11. When finished distributed the change order amount, choose Save. When you are satisfied with the information entered and ready to move forward with the change order, change the Contract Status to Confirmed, then Save again. When a Confirmed contract agreement change order is saved, the costs become committed costs in Job Cost and amounts are reflected in the Contract Agreement window.

Requesting payments for a contract agreement

You can create payment requests for subcontractor agreements from the Contract Agreement window. When a payment is posted, a PM transaction is created and the Contract To Date field on the Contract Agreement window is updated with the new amount.
For users who have Enable GST for Australia marked in Company Setup Options, additional fields and a supplementary window are available to meet the requirements of various Building and Construction Industry Security of Payments Act in Australia. These Australia-specific fields and supplementary window are discussed at the end of this section.

  1. Open the Contract Agreement window (Cards > Job Cost > Contract Agreement) and choose an agreement.
  2. Choose the Payments button at the top of the window. The Contract Agreement Payables Entry window opens. Most fields are filled automatically with contract agreement information.
  3. The Voucher Type defaults to Invoice. You can also create credit memos. Enter a Description of your payment, such as payment for subcontractor X.
  4. Enter a Batch ID (if not posting right away) and Document Number.
  5. To start applying payments to cost codes, choose the Add Cost Codes button. The Available Contract Cost Codes window appears.
  6. The Release Amount defaults to the entire amount for that cost code for the current contract agreement. If this is a partial payment, change this amount.
  7. When finished, you can save it to a batch to Post, or clear the Batch ID field and post immediately.As with any PM transaction, the following reports are available for viewing and/or printing:
    • Trx Entry Posting Journal
    • Trx Distribution Detail
    • Trx Distribution Summary
    • Trx entry Check Register
    • Checkbook Posting Journal

After a PM transaction has been posted, the Retention Withheld (if applicable), Cost Code Released, and Contract Released amounts in the Contract Agreement window are updated with the payment amount(s).

Claimed Amounts Recording

The Australian Building and Construction Industry Security of Payment Act 1999 is the primary legislative instrument regulating payment practices in the industry. The Act's objective is to promote the flow of progress payments by providing a statutory right under a construction contract to receive and recover payments relating to the carrying out of work and the supplying of related goods and services. For more information regarding this Act, visit http://www.procurepoint.nsw.gov.au/supplying/security-payment.

Additional information for Australian users

This section only applies to users who have Enable GST for Australia marked in the Company Setup Options window. The information below will only be available displayed if the Enable GST for Australia is marked. (Microsoft Dynamics GP > Tools > Setup > Company > Company > Options)
Claimed Amounts Recording
The Australian Building and Construction Industry Security of Payment Act 1999 is the primary legislative instrument regulating payment practices in the industry. The Act's objective is to promote the flow of progress payments by providing a statutory right under a construction contract to receive and recover payments relating to the carrying out of work and the supplying of related goods and services. For more information regarding this Act, visit http://www.procurepoint.nsw.gov.au/supplying/security-payment.
The Contract Agreement Payables Entry window has been updated to meet the requirements of various Building and Construction Industry Security of Payments Acts in Australia. In the Contract Agreement Payables Entry window, the following has been added:

  • A Claimed Amount field has been added. This displays the total dollar amount of claims the subcontractor has submitted for the contract.
  • An expansion button has been added to Release Amount. When you choose this button, the new Contract Claimed Amounts window will open where you can view the sub-contractor's claimed amount and the released amount defaults from the previous window.

Contract Claimed Amounts window
The Contract Claimed Amounts window has been added to assist with entering the approved payment and you can enter a reason in the comment field. In the Contract Claimed Amounts window, you can:

  1. Edit the approved payment amount in the Release Amount field. If the amount is changed, the Release Amount in the Contract Agreement Payables Entry will update accordingly.

Note: The release amount cannot exceed the claimed amount.
Enter a comment in Reason Note. Choose Save to close the Contract Claimed Amounts window. In the Contract Agreement Payables Entry window, you can either save the transaction to a batch or you can post the transaction.
Note: When the Claimed Amount is greater than the Release Amount, the sub-contractor must resubmit a claim for the remaining amount.
For example, a sub-contractor claims $10,000 and only $7,000 is approved. The $7,000 is released for the payment. The remaining unapproved $3,000 is recorded on the transaction and the sub-contractor must resubmit a claim for that amount.
Viewing the inquiry windows
In addition to the existing Contract Agreement Payables Entry Zoom window, an additional zoom window has been created for the Contract Claimed Amounts Inquiry window.

  1. Go to Cards > Job Cost > Contract Agreement.
  2. Enter or choose the contract vendor, then choose Contract Released to zoom to the Contract Agreement Transaction Inquiry window.
  3. In the Contract Agreement Transaction Inquiry window, choose Document Number to zoom to Contract Agreement Payables Transaction Entry Zoom window.
  4. Choose the Release Amount expansion button to view the Contract Claimed Amounts inquiry window.

Viewing the Payment Schedule report
The Payment Schedule report has been created that displays the cost code description, total amount of the payment claim and the scheduled amount. This report reflects all cost codes for each job as well as the comments entered in the Reason Note field of the Contract Claimed Amounts window. The report creates a separate page for each job.

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