This manual will contain details of how to set the contracting base
Contracting 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
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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-
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.
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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-
Progressive billing- Revenue is recognized based on progress. When invoice is issued to client, only billing account is offset.
Time card expense GL account
Use position for expense Qty of Hours (In time card)
USE Annual Maintenance Contracts-