To demonstrate how contractual changes impact payment requests, here’s a case where the contractual change is created before the payment request is associated with the purchase order, and a second case where the payment request was created before the contractual change.
Case 1: Contractual change created prior to payment request
Creation of the Payment Request
Case 2: Contractual change created after the payment request is created
Creation of the Payment Request
Case 1 : Contractual Change Created Prior to Payment Request
Let's consider any project with an approved purchase order. We create a contractual change before creating the payment request.
The supplier issues a billable contractual change, which can be either a Step 1 or a Step 2, as described in Typical use cases of contractual changes. Refer to the Aidi Quick Start Guide to create a contractual change.
After discussion between the supplier and the professional, an increase of $2,725 was approved for the cost of the structure.
This amount is added to the total of the purchase order.
Creation of the Payment Request
Approved modifications will always be displayed in future payment requests and invoices in the Contractual Changes section:
The progress of contractual changes is defined in the section From Contractual Changes. All approved billable contractual changes are displayed here. You can enter the received or differential percentage of completion, or the received or differential amount.
Issuing the Invoice
Subsequently, once the payment request has been approved, the progress of the contractual changes and the associated amounts are displayed in the Contractual Changes section of the invoice.
As with purchase order amounts, click on the Auto Quantity button to import amounts from the payment request.
Case 2: Contractual Change Created After the Payment Request is Created
Let's consider a project with an approved purchase order and an open payment request.
A contractual change is created after the payment request is created, but before it is approved.
You can see the contractual change amount added to the purchase order total once the change has been approved.
Creation of the Payment Request
In the existing, but not approved, payment request, the new contractual change is not available instantly, and you may notice that the Contractual Change heading is grayed out and cannot be selected. You must click on the Refresh button for the contractual change to be considered on this payment request.
The Refresh button allows the addition of contractual changes that have been approved during the period between the payment request's creation date and its release for approval. The aim is to enable users to add newly approved contractual changes to their payment request in preparation, without having to delete the request and create it again.
A pop-up box indicates that a new contractual change has been added to the payment request.
Click on OK. You can now select Contractual Changes and see the modifications added to this current payment request.
You can then enter the percentage of completion or the amount of the contractual change in the payment request and continue with invoice creation as described in Case 1 above.
Comments
0 comments
Please sign in to leave a comment.