Subcontract Management Overview
Subcontract Management applies to Progress and Quantity billing types only.
Use the Subcontract Entry program to create contracts (subcontract orders) which have been commissioned out to a third party (the subcontractor) to complete.
A subcontract order will be linked to the Project / Project WBS Phase / Cost Code(s) and holds the Work Order value for a Supplier (the subcontractor).
When a Subcontract Order is due for payment, it is processed using the Subcontract Claim application.
Subcontract Status
The subcontract status shows the stage of the current revision of a subcontract, as defined:
New |
When a new subcontract is created. |
Tendered |
Change the subcontract status to Tendered when the subcontract tender/quote is submitted. The Tender BaseLine check box will be selected. |
Awarded |
When the tender/subcontract is awarded/won. The Subcontract BaseLine check box will be selected. |
Active |
When the subcontract is ready for execution; the Active check box will be selected. |
Completed |
When the subcontract is completed. |
Closed |
When all revenues and costs have been processed for a completed subcontract. |
Cancelled |
When the subcontract is cancelled or voided. |
GL Controls in Subcontract
The Cost Code GL Controls (Project Entry) control the posting of Subcontract AP Invoices.
GL Controls in Subcontract follow this hierarchy for posting Subcontract AP Invoices:
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Subcontract Order (Cost Code) GL Control
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Standard A/P GL Control
If no GL Controls are specified, the system will default to Standard Kinetic AP Invoice Posting GL Control.
The system will also build up the GL Account segments using these GL Controls. For example, you can configure the Cost Code GL Control with only a Cost Segment and the Subcontract Order GL.