Cumulative Contract Billing
The cumulative contract billing functionality ensures clear tracking of work progress and payment applications. This tracking helps in reducing disputes between contractors and customers in alignment with actual work performed.
The billing process for contracts varies based on the activity type. For example, construction billing can be different from goods supply billing. Payment for goods is processed after receiving physical items, completing the goods receipt note, and conducting a quality inspection. In contrast, construction billing is based on periodic billing cycles for trade packages, allowing for payments based on full or partial work completion.
The cumulative contract billing in Project allows contractors to submit a claim for the work completed, on a periodic basis. Each claim includes cumulative details of the progress and the customer-certified assessments.
- Scope of Work: Allows you to defines the contractual scope, serving as the foundation for cumulative progress tracking.
- Application for Payment (AFP) – Allows you to report and submit a claim for periodic progress. Using AFP, these tasks can be performed:
- The contractor (LN user) can specify the Applied Values in the AFP and submit the AFP.
- The customer or architect can certify different Certified Values for the AFP based on the progress.
- The Certified Values specified for the AFP are used to generate the installment invoice.
- When there is a change in scope, you can use the Contract Lines (tpctm1110m000) session to define the scope of work. The contractor can maintain the scope of work with quantity, rate, and contractual agreement details such as charges related to liquidated damages, defects liability period, self-billing agreement details, and acceptable quantity.
- Using the Generate AFP from Physical Progress (tpppc6230m000) session when there are no scope document lines for the specific contract.
