Using progress payment requests

Progress payments requests are generated for the costs incurred when working on a contract with the business partner. Progress payment invoices are sent to the customer based on an agreed billing cycle and settled using the installment or delivery based invoices. The progress payment request process is used to create a US specific Standard Form 1443 invoice.

Note
  • This process can be used only if the required parameter is selected.
  • Progress Payments are only applicable for fixed price contracts.
  • The holdback functionality is not applicable for Progress Payment Requests.
  • Progress Payment Requests are not included in the Revenue Analysis.
To set-up progress payment requests data, you must:
  • Specify the revenue code in the General Project Parameters (tppdm0100s000) session.
  • Select the Progress Payment Requests check box in the Contract Parameters (tpctm0100m000) session.
  • Select the Small Business check box to ensure the business entity is a small business, and to print the value on the Standard Form 1443. The check box is enabled only if the Progress Payment Requests check box is selected.
To define a progress payment request

You can define the progress payment requests details on the Progress Payment Requests tab in the Contract (tpctm1600m000) session:

  1. Specify the contract.
  2. Select the Progress Payment check box to create the progress payment request for the contract.
  3. Specify the progress payment percentage. The percentage of cost for a contract that is considered for invoicing. The commonly used progress payment percentages range between 75-80%.
  4. Specify the progress liquidation percentage used for calculating the amount to settle the progress payment invoices.
  5. Specify the invoicing method.
  6. Specify the payment terms.
  7. Select the Billable Cost Report check box to print an additional report while creating the invoice.
  8. Create a contract line(s). For more information, refer to Contract lines data setup. Infor LN defaults the progress payment data defined for the contract, on the Progress Payment tab.
Note
To create a progress payment request
  1. In the Cost-Plus Transactions to be Invoiced (tppin2100m000) session, select the Contract line. or select the Billable Cost Details option in the Contract 360 session, to create the costs for the contract.
  2. In the Create Aggregated Billable Cost (tppin1200m000) session, click Create, to create the billable cost lines.
  3. In the Cost-Plus Transactions to be Invoiced (tppin2100m000) session:
    • Select the created billable cost line for the contract
    • On the Reference menu, click Contract Billable Cost Lines. The Contract Billable Cost Lines (tppin1100m000) session opens.
  4. In the Contract Billable Cost Lines (tppin1100m000) session, select the billable cost line for the contract.
    • On the Reference menu, click Create Progress Payment Requests. The Create Progress Payment Requests (tppin0270m000) session opens. Infor LN defaults the progress payment requests data from the Contract (tpctm1600m000)/ Contract Lines (tpctm1110m000) session.
  5. In the Create Progress Payment Requests (tppin0270m000) session, specify the required information and click Create. Infor LN creates the progress payment requests.
  6. In the Progress Payment Requests (tppin0170m000) session:
    • Approve/Unapprove the progress payment requests
    • Transfer the progress payment requests to invoicing
Note
  • You can review the progress payment requests data in the Progress Payment Requests (tppin0170m000) session.
  • You can review the settled progress payment requests data in the Settled Progress Payment Requests (tppin0571m000) session.
Invoicing

You must use the relevant invoicing method and payment term specified for the contract line. Invoicing may differ based on:

  • Progress Payments invoices settled at agreed intervals, based on the progress of the contract.
  • Progress payment invoices including the advance payments.
  • Progress payment invoices settled with installments/delivery based invoices.
Note
  • When Progress Payment Requests are settled using Installments or Deliverables, a reverse entry is generated in Financials.
  • Infor LN registers revenues for the requests using the revenue of the type Progress Payment Request, in the Revenue Transactions (tpppc3505m000) session.
  • When generating the balances for interim results, Progress Payment Requests are included to calculate the Billed to Customer amount.
  • Infor LN also allows the user to print a US specific invoice, Standard Form 1443 (SF1443) Contractors's Request for Progress Payment. To print both these standard forms, the Infor Operational Reporting functionality is required. The SF form 1443 must also specify the unsettled advance amount.
  • Progress payment requests are posted using the existing Integration Document Type Project Revenue/Revenue Analysis.

Related topics