Set Application Received

Explanation

This activity is used to receive an application. When an application is received from a supplier, the amounts need to be registered on the valuation, and recognized so that the costs and expenses can be kept track of. By receiving the application, a voucher that helps to identify future costs, is created. It is possible to recognize a partial value of the total applied amount on an application. In some cases the supplier may have intentionally over applied and the total amount is not really expected to be paid. Based on the percentage (%) to recognize, as defined on the valuation (received from the sub contract), only the allowed percentage (%) of the applied amount will be recognized. The following example details this further:

For simplicity, let us consider a single sub contract line. The total application amount of items on application A1 is £1100, but less Discount 5% (£55), Retention 5% (£52.25) and Deductions 2% (£19.86). The application is raised for £972.89 plus VAT. If the percentage to be recognized is 90% of£972.89 (£875.60) excluding VAT, this means that only £875.60 will be posted.

If a project activity is connected to a contract item, used cost will be reported to the project when the application for payment related the item is received and when the item valuation is certified. When multiple currencies are involved, all calculations to reduce the committed cost when the used cost is reported are done in the transaction currency. The remaining committed cost is then converted to base currency, using the currency conversion rate valid to the system date, and updated to the project activity.

Prerequisites

• The valuation should be in the Planned status.
• The Application No field should have a value, i.e., an application should be connected to the valuation.
• The Receive Application check box should have been selected.

System Effects

• The status of the valuation changes to Application Received, and vouchers are created automatically.
• The Application Received Date field on the valuation is defaulted as the Voucher Date.
• Postings are created for the submitted application amounts using the Voucher Date, User Group, and Voucher Type as defined in the Receive Application dialog box. More information about the postings created is available in Posting Types for IFS Sub Contract Valuation.
• The applied values are recognized as application amount using the % to Recognize as defined on the valuation.

Window

Sub Contract Valuation

Related Window Descriptions

Receive Application
Sub Contract Valuation

Procedure

1. Open the Sub Contract Valuation window and query (F3) for the necessary valuation.
2. Right-click anywhere in the header, point to Status, and then click Receive Application. The Receive Application dialog box opens.
3. Verify that the default user group, application voucher type and voucher date are correct. You can change these values, if necessary.
4. If a project activity is connected, used cost is reported to the activity when the application for payment is received.
5. Click OK.