Submit Application For Payment
Explanation
Use this activity to submit an application to the customer for payment. Once
all the valuations have been done and the application has been approved, it
can be sent to the customer. The application will be printed and then sent to
the customer for certification.
If the customer has agreed to carry out invoicing on submitting (invoice
before receiving the payment) instead of certifying the application, this can
be entered as the default option, which makes the Create Invoice option
selected by default. If the Create Invoice option is selected, an invoice
will be created and sent to the customer instead of an application. Once the
application is submitted, no changes are allowed on the application header,
application lines, and line items. However, you can enter values in the Certified
Released field and Certified Work, Certified Stored Material,
Certified Quantity and Total Retention Certified Override fields
when receiving the certificate back from the customer.
If an application is supposed to be printed, the Print Application
toggle should be selected by default. The application can be printed even when
doing direct invoicing, and will then work as the invoice details.
Prerequisites
- Application must be in the Approved status.
- All previous applications (not considering previous
applications in the Canceled status) must have been submitted (those in
the Submitted, Certified, Partially Paid, Fully Paid status) before submitting
the current one. If a previous application that is not submitted exists,
this must be either submitted or canceled before submitting the new one.
This is to avoid sending out applications with older contract contents and
outdated valuation values.
- The default project must be active and a released activity must exist.
- All report codes must be valid for the revenue activity defined on the
contract.
- It is not allowed to submit an application with a payment term that
has installments or discounts defined.
- If the contract is On Hold, normally the application should not be submitted,
but it is allowed to be overridden if necessary.
- The Invoice Method must not be Direct Invoice.
System Effects
If the application is submitted:
- The status of the application changes to Submitted.
- If Print Application is selected, an application for payment
report is created and printed.
- If no due date is set prior to submitting the application, the
application for payment due date will be automatically calculated using
the payment terms defined on the application.
- Postings for the submitted applications are created using the function
group Application For Payment (AFP). If a percentage to be recognized has
been defined on the contract, the value of the postings will be adjusted
accordingly.
If the application is invoiced when submitting:
- The status of the application changes to Certified.
- No changes will be allowed on the application.
- It will not be possible to cancel the application.
- Standard postings will be created by the project invoice. No AFP postings
will be created since the invoice will cover all revenue postings.
- The Invoice Method will be set to Invoice on Submit Application.