Using extensions

An extension consists mainly of invoicing agreements. The relation to the budget is defined in the initial budget or the budget adjustment detail lines or both. The status of the extensions are:

  • Free

    The extension for budgeting but not used to register actual costs.

  • Actual

    You can post actual costs to the extension, but the invoicing of the extension is not possible.

  • Final

    The data cannot be modified.

  • Invoicing Allowed

    The unit costs can be posted to the extension and the extension can be invoiced.

Extensions can be invoiced based on a fixed price, the budgeted contract amount or the billing amounts from the actual transactions. To control orders separately, you can define a start and finish date for the extension. You can register the progress of an extension by extension or by extension within a control code. Projects can be controlled by specific extensions or with the control budget.

You can use the Extension (tpptc0110s000) session to specify, display and print the changes for a project that affect customer invoicing. These extension types are supported in Infor LN:

  • Scope change
  • Provisional amount
  • Quantities-to-be-settled
  • Fluctuation settlement

Scope Change

Extensions can be invoiced according to a fixed price, a budgeted contract amount or the invoice value from the actual cost transactions. The scope change extension type is applicable when there is a scope change in work as a result of:

  • Additional work that is not included in the specifications, planning and drawings based on which a budget is created.
  • Reduced work when a work is cancelled or reduction in dimensions, material specifications, and so on.

The costs is booked with a reference to the relevant extension, with sessions such as the Required Skills for Activity Budget Lines (Labor) (tpptc2131m000) session. After processing the transactions, invoices can be created.

Note: You cannot define extensions of type Fluctuation Settlement for Cost-Plus contracts and for contracts with Invoicing method set to Unit Rate.

Provisional Amount

An extension type that you must use if you are not sure of a certain part of the project costs when you develop your project. Settle the differences between the provisional-amounts budget and the actual costs at a later stage. This type is part of the original contract.

A provisional amount, which is included in the budget in advance, is a rough estimate of the costs if it is not clear what materials is used or if the design of a certain component is not yet final. The settlement of the difference (amounts) is posted to the cost object that is recorded in the Sundry Cost Code field for Provisional Amounts in the Projects (tppdm6100m000) session.

Quantities to be Settled

The difference between the actual quantity and the budgeted quantity of a cost object is settled.

Fluctuation Settlement

The costs calculated as a result of a fluctuation settlement for material costs and/or wage costs (prices) that must be posted to an extension. The settlement costs from a fluctuation settlement is always posted to a sundry cost code recorded for the project in the Projects (tppdm6100m000) session.

The types of fluctuation settlement are:

  • Index fluctuation settlement

    You can settle a percentage of the contract price based on price indices. The billable amount is based on invoiced installments or on the progress.

  • Price fluctuation settlement

    You can settle the items in the budget that contain a specific material (for example, copper) while accounting for possible price fluctuations of that material. Price indices are maintained at the material and data level. The invoicing is based on the progress that is registered in Project Progress. Invoices related to the billing of price variations are generated. These invoices are processed by Invoicing, based on the invoicing method defined in the Project Definition. Budget entries that contain specific materials can be settled while considering possible price fluctuations for those materials. Price indices are maintained by material and date. Billing is based on progress.