Page History

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Captures the general details and linkages of the document

• Company -  Subcontractor 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  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

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The Service tab provides a detailed breakdown of all work items or services being claimed by the subcontractor in a payment application.

• Subcontractor WBS   - Optional code to identify work as defined by the subcontractor.

• Item   - BOQ  BOQ line service item.

• Content   -  item reference and Description  Description of this work or service performed.

• UOM   - Unit of measure.

• Price   - The agreed unit rate for this work item as defined in the Subcontract Agreement (SA).

• Agreement  Agreement -  This  This section shows the quantities and values that were originally agreed upon in the Subcontractor Agreement (SA)

1. 1. Quantity   - The  The total number of units of work agreed in the SA for this item.
   2. Amount   - Total value based on the linked Subcontractor Agreement.

• Payment Application

1. 1. Previous Quantity  - Cumulative  Cumulative quantity of work approved in all prior payment applications.
   2. Previous Amount  Amount -  Total value of previously approved quantities (before retention and VAT).
   3. Previous %  % -  Percentage of progress achieved up to the last approved application.
   4. Current %   - Progress percentage being claimed for the current application document.
   5. Cumulative %   - Total progress achieved to date, including previous and current claims.

• Quantity   - Units of work being billed

• Amount   - Gross value of work before retention and VAT.

• VAT % - Percentage of VAT applied to the billed amount

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• Retention - Portion of the payment withheld to ensure contractual and quality compliance

1. 1. Total (before retention)   - The  The total billed valuebefore retention is deducted.
   2. Retention %   - Rate used to calculate the retained amount
   3. Retention   - The  The monetary value withheld based on the retention percentage.
   4. Retention VAT - VAT amount applied to the retained portion.

• VAT Amount   - Total VAT calculated (including VAT on retention where applicable).

• Total   - Net payable amount after retention and VAT calculations.

• Project Task   - Specific task the work relates to within the project.

• Project WBS   - Work Breakdown Structure code to classify the tasks within the project hierarchy.

• Requisition   - Original request or source of the work order.

• Department   -  Department Department responsible for or related to the activitydeduction.

• Business Activity   - Work category or operational classification.

• Expense Item   - Cost or budget category used for expense tracking.

• Comment   - Additional text or details can be added in the field.

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The Summary section shows consolidated totals for the currently selected service line and for the entire document. 

• Agreement  -  Represents Agreement represents the original contracted values from the Subcontractor Agreement (SA).

1. 1. Quantity   -  The The total quantity of work originally agreed with the subcontractor.
   2. Amount   -  The The total contract value for that quantity based on the SA.

• Payment Application  -  Shows what the subcontractor is claiming in the current payment application, plus previous approved claims (cumulative).

1. 1. Quantity   -  The The total quantity of work claimed to date.
   2. Amount   -  The The total monetary value claimed to date.

• Payment Certificate  -  Shows Certificate shows what has been reviewed, approved, and certified 

1. 1. Quantity   -  The The amount of work certified as actually completed.

   2. Amount   -  The The certified value based on approved quantities.

• Invoiced  Invoiced -  Represents the portion that has already been invoiced (billed) by the subcontractor based on certified work.

1. 1. Quantity   -  The The amount of certified work already invoiced.
   2. Amount   -  The The total value that has been billed to date.

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This tab is used to record deductions applied to the subcontractor’s claim, such as penalties, material supply recoveries, advance recoveries, or other contractual adjustments

• Item – - Name of the material, service, or deduction type.

• Content / Description – - Details or description of the deduction.

• Quantity – - Quantity being deducted.

• UOM (Unit of Measure) – - Measurement unit for the quantity (e.g., Litre, Hour).

• Price (Unit Price) – Cost per unit - Unit rate of the item.

• VAT % – - Tax percentage applied to the item (for calculation purposes only).

• VAT Amount – - Tax amount calculated from VAT % (not posted as input or recoverable VAT).

Note: VAT % and VAT Amount in this tab are for calculation purposes only . All deduction-related transactions, including VAT posting, must be processed through the Invoice Received document.

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and will not be posted as output VAT. Proper VAT posting can be done by issuing the Invoice document for subcontractor's deduction-related transactions.

• Amount - Total deduction amount before tax (Quantity × Price).

• Total Amount (Gross Value) –  - Total deduction amount including VAT (Net + VAT).

• Subcontractor WBS – Project Work Breakdown Structure code for allocating cost to the correct project activity. - Optional code to identify work as defined by the subcontractor

• GL Account – Financial account to which the expense or revenue - Ledger account where the deduction is posted.

• Department – Responsible company department for this costDepartment - Department responsible for or related to the deduction.

• Business Activity – Internal reporting classification category.

• Income Item / Cost Code – Used for grouping costs or revenue by type.

• Comment – Optional notes or remarks about the line.

Note 

• The VAT % and VAT Amount fields in this tab are for calculation purposes only and will not be posted as input or recoverable VAT.

• All deduction - related transactions, including VAT calculation and posting, must be recorded through the Invoice Received document. - Type of business activity associated with the deduction

• Income Item - Income category or account linked to the deduction

• Comment - Free-text field for notes or explanations about the deduction

Advance Offset

Only the advance payment is recorded as an offset balance and entered into the prepayment field, regardless of the payment method (bank transfer, cheque, etc.). This advance is linked to the current document so that any subsequent linked document automatically carries forward the prepayment. The final accounting offset occurs in the Invoice Received document.

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