...
Company- Subcontractor submitting the payment request.
Contract- Contract associated with the subcontractor.
Apply Retention / VAT on Retention- Option to hold back a portion of the payment to ensure work quality; VAT is to be calculated on the retained amount.
Recognize Expenses in Payment Application Received -
If the Subcontractor Agreement Basis is set to Recognize Expenses by Payment Application, expense recognition and financial postings occur when the document is approved/posted
GL Transactions:
Dr Expense (based on the linked cost item and analytics)
Cr Unbilled Purchase (liability representing the subcontractor’s claim)
When the subcontractor’s invoice is later received, this liability is cleared to Payables
Subcontract Agreement Initial-Reference Reference to the original subcontract agreement document.
Project- Project linked to the payment claim.
Delivery Date- Indicates the time period or cut-off date for the claimed work.
Type- Indicates the billing method (e.g., progressive billing or advance billing).
...