A sub contract valuation is used to record progress of work performed against a contract, receive payment requests, invoices and manage payments of such invoices.
A valuation can be created at any time, often in regular intervals based on company policy. Valuations are always based on the underlying awarded sub contract, and can be done on a detailed level by contract line and item, or on an overall level. This is defined by the settings for the Item Level Certificate check box on the contract. If a valuation is done on the line item level, the valuation values are summarized to a total valuation for the sub contract.
Doing a valuation is a cumulative process, and the valuation values entered will include any previous values. If a previous valuation exists, the valuation values for this previous valuation will be copied automatically to the valuation value of the newly created valuation.
When an application for payment is received from the sub contractor, the application and its amounts are entered onto one of the existing valuations. Normally the application amounts are compared with the amounts from the valuation, and from this process the certified amounts are entered. This will then form the basis for issuing a payment certificate to the sub contractor (i.e., supplier), indicating what the contractor is accepting to pay. The sub contractor will then submit an invoice to the contractor, and this invoice will be matched against the payment certificate.
Any retention, discount and deductions defined on the sub contract will be handled through the valuation.
Valuation uses two different statuses, Valuation status and Payment status, in order to monitor the progress of the both the valuation and the payment.
A valuation can go through the following stages:
Planned
A planned valuation is as a blueprint, where initial proposals and plans are metered out before the approval process starts. All new valuations begin in a Planned status.
Valuation Completed
Indicates that the internal valuation of work performed is completed. Many valuations will not be processed further through application received to certified and so forth, and will instead end up as Archived.
Application Received
This status indicates that an application for payment has been received with a
specific application number and application amounts have been entered. Under this status, application postings may be created for the net
amount, retention, deduction and discount amounts*.
It is possible to enter certification amounts in this status.
Certification In Progress
A valuation in this status means that the valuation is currently going through
the process of being certified. A valuation can enter this status if it is
currently in the Application Received status. It is possible to go directly from the
Planned status only if the sub contract is configured to not receive
applications for payment.
It indicates that all costs, payments and other details pertaining to the sub contract have been discussed by the contractor and its supplier, and that all those amounts have been entered as certified amounts on the valuation.
Certified
When a valuation is certified, it indicates that the contractor has issued a
certificate to the sub contractor confirming the certified amounts to be paid by
the contractor. Under this status, certified postings will be created for the net
certified amount, retention, deduction and discount amounts, and the
corresponding application amounts will be reversed*.
A valuation can only be certified after the certification process has been completed.
Partially Invoiced
One or more invoices have been received and matched with a part of the total
payment certificate amount.
Fully Invoiced
One or more invoices have been received and matched with the total payment certificate amount.
Archived
Valuations can be created as required, although not necessarily only for applications received, so there may exist valuations that are not connected to any applications. Valuations in status Planned and with the Valuation Completed check box selected, can be archived for future reference, if needed.
When a valuation supersedes another valuation(s) and this valuation(s) is completed though not certified, then certifying the latest valuation will automatically set the status of the older valuation(s) to Archived.
Cancelled
This valuation has been cancelled and is not used in any way.
When a valuation/certificate is in the process of being paid, the payment goes through the following stages:
Partially Paid
The Payment status of the valuation is set to Partially Paid if the valuation is Partially Invoiced and a payment has been made against one or more of the invoices for the payment certificate, or if the valuation is Fully Invoiced but only a part of the total invoice amount has been paid.
Fully Paid
The Payment status of the valuation is set to Fully Paid if the valuation is Fully Invoiced and the total invoice amount has been paid.
* Any postings created are based on the posting control configuration.