This manual will contain details of how to set the contracting base
Contracting setup : Sales
Use Retentions for Sales- This should be enabled when the customer will have retention on sales.
Retention in construction contracts is a crucial agreement where a percentage of payment is held until the completion of the project, the purpose of retention is to ensure that the contractor properly completes the activities required of them under the contract. On completion, half of the amount retained is released and the remainder is released upon certification of making good defects at the end of the defects liability period. To know more in detail about retention, kindly refer Retention Sales (Contracting).
Quotation Process : Client may create either of the just Quotation or Quotation with revisions or Quotation with revisions and Variations. If set up here, further it will appear in Project estimate.
For 1st estimate, system will generate the Quotation, for any revision, system will generate revised quotation but in case of any variation, it will create a separate Quotation not included in the main part.
i) Revisions are done from entity side due to changes in budgets, clause might be changed but Quotation will mostly remain similar.
ii) Variations are any changes done from customer side, for example, changes in scope, due to expansion of work or additional work, therefore they require additional price or new negotiated price. I
t can be revised multiple times until it is finalized before the start of project. Once project is confirmed, during the project execution, client might ask few more changes during middle of project work, so this changes will led to creation of VARIATIONs
Calculation VAT at retention Invoice (Default)- Refer Retention Sales (Contracting) and VAT on Retention Invoice
Proforma (Progressive) Invoice estimation: Progressive invoice are created in % basis, it can either % of Amount or Quantity.
For example, create a progressive invoice from Project list, when the Progressive Invoice estimation setting 'By Amount'. % has to be added, here 10% is added.
The estimated amount * estimate % will calculate the AMOUNT for the progressive Invoice. Price is recalculated based on the Amount and qty added.
If the setting is 'By Quantity'- the estimation qty and % of estimate will determine the Quantity for amount calculation.
- Contracting setup : Procurements
Use Fuel consumption-Fuel consumption is used to track the fuel consumed for each asset. Once we enable this we will have one entry form to record the fuel consumption for assets in project costing module.
Use supplier rating- It works based on each purchase order, Criteria can be created by entity, it can be quality, delivery time or payment terms. Based on overall purchase per supplier, average rates are calculated.
Tendering functionality-It is when procurement requisition is generated, user will have an option to raise RFQ (Request for quotation) to supplier, based on that comparison can be made, further purchase order can be created. Refer the hyperlink for more detailed understanding, Requisition- RFQ
Use Stock GL transaction- Use Stock GL transaction is used to create financial entry based on the GRN which allows the user to consume goods even if they don't have the invoice.
There is one default GL account in company master for unbilled purchase.
At the time of GRN following entry will be created
Dr Goods
Cr Unbilled purchase
Then when we record the invoice
Dr Unbilled purchase
Cr Trade Payables
Supplier Price type (by default for projects GL)- It is used to fill the prices in the project estimate based on the project price list
Proforma Invoice received estimation- By amount/ by Quantity. By amount, system will take % of
- Contracting setup : HR and Project Progress-
Deduction type for Damages/Losses- This is used to set the default deduction type for damages and losses. Please check the manual for more details- Project Damages/Losses report
Progressive billing- Revenue is recognized based on progress initially and when invoice is issued to client, only billing account is offset.
Time card expense GL account-In time card document, when allocation of cost is done and the resources/manpower are hired. The GL are required to create the entry of Time card.
To fill it by default, it can be added in the Contracting settings.
Use Annual Maintenance Contracts-Annual maintenance contracts used for AMC projects, to track the job order and visits.
Manual project task status is used to change the Project task status manually instead of automatically.
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#Contracting #settings