This document demonstrates the process of entering a subcontract purchase order.
Go to Procurement > Subcontract Orders (Figure 1).
Alternately, go to Subcontract Ledger > Subcontracts > Subcontract Orders. Both routes will lead to the same place.
Figure 1: Procurement > Subcontract Orders
Click Add at the bottom of the screen (Figure 2).
Figure 2: Add Subcontract Orders
The PO Number will automatically generate if left blank (Figure 3).
Click on the Service Order Related? checkbox for Service related PO. If it is a Job-related PO, this checkbox should be unchecked (Figure 3).
If the checkbox is selected, enter in the Service Order and Type of Work.
Figure 3: Subcontract Orders – Service Order Related
Select the appropriate order Type (Figure 4):
N-Normal Order (Lump Sum) allows entry of a lump sum dollar amount per PO line.
This is the most commonly selected option.
U-Unit Price Order allows entry as a quantity of items X a per unit price
R-Reserved Order simply exists to reserve a PO number for a later time.
Select the appropriate option for Head/Site Office (Figure 4):
Head Office – for orders generated at the Head Office
Site – for orders generated at the job site
Based on configuration, this can change the auto-generated PO number to begin with a character to denote whether the order was raised in the Head Office or on the job site.
Figure 4: Subcontract Orders - Type
Optionally, select the checkbox for Confirmation Order? to denote that the PO was given to the subcontractor verbally (Figure 5). This checkbox would be selected for informational purposes and would have no effect on processing.
If the Service Order Related? checkbox is not selected, enter the Job Number (Figure 5).
Sales/Use Tax, Lien Waiver Required, Direct Pay, Pay When Paid, will auto-populate based on the setup of the job.
Figure 5: Subcontract Orders – Job Number
Enter the Subcontractor (Figure 6).
Office will auto-populate if the Subcontractor has a Main Office. Otherwise, if the company has more than one office, enter the office name or use the Lookup (…).
Status and TAX Registration No will auto-populate based on the Subcontractor.
Figure 6: Subcontract Orders – Subcontractor
Enter in the Trade code for the subcontract, based on what type of work the subcontractor is performing (Figure 7).
Description will default in based on the Trade selected.
Figure 7: Subcontract Orders – Trade
Trades can be set up in Procurement > Commodity, Trade, Equipment Workbench > Trades (Figure 8).
Figure 8: Commodity, Trade, Equipment Workbench – Trade
Select the Subcontract Type from the dropdown list (Figure 9).
This is for informational purposes only. Subcontract Types are set up in Subcontract Ledger > Setup Maintenance > Subcontract Types.
Sales/Use Tax auto-populates based on the job selected, but can be overridden if an alternate tax jurisdiction is required (Figure 9).
Optionally, use the Attention field to record a contact name at the subcontractor (Figure 9). Contact names can be added, if desired, in the Lookup (…).
The Order Date will auto-populate to today’s date, but can be changed if desired (Figure 9).
The Buyer auto-populates with the name of the person creating the Subcontract Order (if the user is set up as a Buyer). However, any Buyer can be selected from the drop-down list (Figure 9).
Select the checkbox for Direct Pay? If sales tax is to be accrued and paid by the company directly to the tax authorities, instead of the subcontractor (Figure 9).
This will default based on the setup of the Job selected.
Figure 9: Subcontract Orders – Buyer
Optionally, select a Compliance Class from the drop-down list (Figure 10). Compliance Classes are basically groups of compliance items, and are set up in Subcontract Ledger > Configuration > Compliance Classes. If compliance is not required for the subcontract, select Not Required.
Optionally, enter any Special Instructions (Figure 10).
Pay When Paid will default in based on the setup of the Job selected (Figure 10). If selected, subcontractors are to be paid when a linked Job Receivables invoice is paid. It can be unchecked if this subcontract is not part of that arrangement. However, the subcontract can’t be marked as Pay When Paid, if the job is not set up as such.
Select the checkbox for Agreement Required is agreement tracking is used in COINS (Figure 10). This will cause an Agreement tab to appear, in which the type of Agreement and dates sent and received can be recorded.
If configured and selected, Special Terms can be specified for the PO, which differ from the normal terms specified on the Subcontractor record (Figure 10).
Select the checkbox for Review Required to be able to carry out performance reviews on the subcontractor, according to company-defined criteria (Figure 10).
Select the checkbox for Labor Only if the subcontract order is a labor-only subcontract (Figure 10). This checkbox allows COINS to determine whether certain insurances should be validated or not.
If Warranties from the Subcontractor are required, select the checkbox (Figure 10). If set to Not Required, payment processing proceeds normally. If set to Required, no payments can be made for this Subcontract until this is changed to Received.
If a Performance Bond from the Subcontractor is required before payment processing, select the checkbox (Figure 10). If set to Not Required, payment processing proceeds normally. If set to Required, no payments can be made for this Subcontract until this is changed to Received.
If lien waivers are required for the subcontract, select the checkbox for Lien Waiver Required (Figure 10). During Subcontract payment processing, a lien waiver can be printed. Receipt of lien waivers are tracked via Subcontract Ledger > Payments > Lien Waiver Receipts.
To generate alerts for outstanding lien waivers when a subcontract certificate is entered, select the checkbox for Warn for Outstanding Lien Waivers on Invoice Entry (Figure 10).
Figure 10: Subcontract Orders – Compliance Class
In the Address tab, the Order To address will auto-fill based on the Subcontractor and the Site Address will auto-fill based on the Job (Figure 11).
Both addresses can be changed, if desired (Figure 11).
Figure 11: Subcontract Orders – Addresses Tab
In the Details tab, the Certificate Type will auto-populate based on the Default Certificate of the Subcontractor selected, but can be changed, if desired (Figure 12). The Certificate Type defines how the subcontract certificates are entered into the system. Certificate Types are maintained in Subcontract Ledger > Configuration > Standard Certificate Definition.
SUM-Summary Certificate is the most commonly used option. Less detailed than Breakdown. Doesn’t allow multiple invoice lines.
DET-Breakdown Certificate can be selected if more than one cost code is needed. Allows the breakdown into multiple invoice lines.
Optionally, enter in the Start Date and/or End Date of the subcontract (Figure 12). This is for informational purposes only and does not affect processing.
The following fields will default in, based on the Standard Certificate Definition of the Certificate Type selected, but can be changed, if desired (Figure 12):
Discount % - The percentage of any discounts to be calculated on certificates entered against this subcontract.
Works Retention - Retention percentage taken on Labor.
Material on Site Retention % - If on site materials have a different retention percentage than the Works Retention, a value can be entered here to reflect that.
Material off Site Retention % - If off site materials have a different retention percentage than the Works Retention or Material on Site Retention, a value can be entered here to reflect that.
Figure 12: Subcontract Orders – Details Tab
Select the appropriate Payment Type, to determine whether payments on the subcontract order are separated by (Figure 13):
Subcontractor – payments separated by subcontractor (not separated)
Job – payments separated by job
Separate – payments separated per transaction (certificate)
For the Maximum Retention Type field, select whether to calculate maximum retention withheld for the subcontract by Value (specific dollar amount) or by Percentage (Figure 13).
If set to Value, enter in the Maximum Retention Value (the dollar amount of the maximum retention withheld for the subcontract).
If set to Percentage, enter in the Maximum Retention % (the percentage of the subcontract value representing the maximum to be withheld).
Figure 13: Subcontract Orders – Details Tab
Next, go to the Agreement tab, if applicable (Figure 14).
Select the appropriate Agreement Type, the agreement specified on the subcontract (Figure 14). Agreement Types are set up in Procurement > Setup > Technical Information System > Lookup Tables > Subcontract Agreement Types.
Optionally, enter any additional Notes (Figure 14).
Optionally, enter in the Date Sent and Date Received fields (Figure 14):
Date Sent: The date the Agreement was sent to the Subcontractor.
Date Received: The date the Agreement was received from the Subcontractor.
Then, click Save in the bottom, right corner of the screen (Figure 14).
Figure 14: Subcontract Orders – Agreement Tab, Click Save
Purchase Order LInes
After saving the purchase order, the subsequent screen is the Purchase Order Lines tab. Note the PO Number has been generated and is shown at the top of the screen (Figure 15).
Make sure Normal is selected in the drop-down on the bottom action bar and click Add (Figure 15).
Figure 15: Subcontract Orders Lines – Add
Enter the line item Description (Figure 16).
Sales/Use Tax will populate automatically (Figure 16).
Enter in the Price of the line item (Figure 16).
If the job uses WBS Codes, enter in the WBS Code to which costs for this line should go to for the Order Line (Figure 16).
Select the appropriate Cost Type and Cost Category, which may default in (Figure 16).
Then, click the floppy disk to Save the line (Figure 16).
Figure 16: Subcontract Orders Lines – Enter Information, Click Save
Clauses can also be added as line items and are configured via Procurement > Setup > Technical Information System > Standard Text and Clauses > Subcontract Clauses.
If desired, the subcontract order can be committed by going to Options and clicking Commit Order (Figure 17).
Figure 17: Subcontract Orders Lines – Options > Commit Order
Commit the Subcontract Order
Go to Procurement > Subcontract Orders and find the order (Figure 18).
Select the checkbox to the left of the order (Figure 18).
At the bottom of the screen in the menu bar, select Commit Orders (with zero value check) the dropdown, and click the arrow to “Apply Action” (Figure 18).
Figure 18: Commit Orders (with zero value check)
At the next screen, click Next in the bottom, right corner of the screen (Figure 19).
Figure 19: Output Options, Click Next
Click OK to the Warning message that pops up (Figure 20).
Figure 20: Subcontract Orders – Warning
Once the order has been committed, the status of the Subcontract Order will be updated to COM for “Committed” (Figure 21).
Figure 21: Subcontract Order is Committed
