The Payment Application Received document records subcontractor claims for work completed under a Subcontractor Agreement (SA). It serves as the basis for certification of subcontracted work value and, if enabled, expense recognition in financial accounts.
Captures the general details and linkages of the document.
Company – Defines the entity receiving the subcontractor’s payment claim.
Contract – Reference to the related main contract (if applicable).
Entity – The subcontractor (supplier) submitting the claim.
Subcontractor Agreement Initial – Linked SA under which the work was performed.
Project – Project or subproject to which the application belongs.
Basis – Optional field for classification or grouping.
Requisition – Source requisition (if created via approval workflow).
Delivery Date – Indicates the period or cut-off date for the claim.
Options –
Apply Retention
Calculation VAT at Retention Invoice
Recognize Expenses in Payment Application Received-
If the Subcontractor Agreement Basis is marked as Recognize Expenses by Payment Application, financial postings occur upon document approval/posting.
GL Transactions:
Dr – Expense (per linked cost item and analytics).
Cr – Unbilled Purchase (liability for subcontractor claim).
When the subcontractor invoice is later received, this liability is closed to Payables.
Type – Defines whether the claim is Progressive or Advance Invoice.
Services Tab
Lists work items or services being claimed. Each line reflects part of the subcontractor’s work scope as defined in the SA.
# / Subcontractor WBS – Related project WBS code for cost tracking.
Item / Content – Description of work or service performed.
UOM – Unit of measure (e.g., m, kg, pcs).
Price – Agreed unit rate from the SA.
Agreement Qty / Amount – Original agreed quantity and value.
Payment Application (Qty / Amount / %) – Quantities or values being claimed in this application.
Previous / Cumulative % – Progress history based on earlier applications.
Summary Tab
Shows consolidated totals for the selected service line and the entire document.
Agreement (Qty / Amount) – Original scope and value under the SA.
Payment Application (Qty / Amount) – Current certified work claimed.
Payment Certificate (Qty / Amount) – Approved and certified portion.
Invoiced (Qty / Amount) – Portion already invoiced by the subcontractor.
At the bottom of the form:
VAT – Calculated based on the VAT rate of each line.
Retention – Retained portion of the payment.
Total Due – Net payable amount after VAT, retention, and advance offsets.
(Optional, same logic as Payment Application Issued)
Used to record deductions applied to the subcontractor’s claim, such as:
Penalties or adjustments.
Material supply recoveries.
Other contractual deductions.
Each deduction reduces the total payable value.
If the subcontractor received an advance payment earlier, the corresponding balance is automatically deducted here.
The offset logic is based on:
Linked Advance Invoice Received.
Proportionate adjustment against certified value.
Captures optional references, notes, and classification details such as:
Comments or remarks related to the claim.
Internal document numbering.
Analytical codes or departments for reporting.