Process On-Cost Invoices

A high-level overview of processing on-cost invoices with links to more detailed information.

Once you have set up on-cost invoicing, the system generates on-cost invoices based on the original invoice that you paid to the subcontractor for their work.
  1. Enter an invoice for the subcontractor in the AP Transaction Entry form (see Entering Accounts Payable Invoices). You can also review recurring or unapproved invoices that are ready to be processed.
    Note: If you have set the subcontractor as subject to on-cost (you checked the Subject to On-Cost box in AP Vendors, Add'l Info tab), the system will check the Subject to On-Cost box for each invoice line in AP Transaction Entry. If you have specified a specific JC cost type for on-cost invoice job line associated with the subcontractor (JC Cost Type field in AP Vendors, Add'l Info tab), the system will compare the line's cost type with AP Vendors. If the cost types match, the Subject to On-Cost box for the invoice line will remain checked. If they do not match, the system will uncheck the box for the job invoice line. This means that on-cost invoices will not be generated for the line.
  2. Process and post the invoice batch as normal. All invoices with lines that were set to subject as on-cost will be available for review in the AP On-Cost Workfile form, and will be set to an on-cost status of Awaiting Process (On-Cost Status field).
  3. Add invoices to the AP On-Cost Workfile form and review each invoice line.
    Tip: You can also run the AP On Cost Pending Invoices report to view invoice/transaction lines that are subject to on-cost processing prior to processing on-cost invoices.
  4. Set the on-cost action for each invoice line appropriately using the On-Cost Action drop-down in the AP On-Cost Workfile form. For more information on this field, click here.
  5. From the AP On-Cost Workfile form, create an on-cost batch by clicking Create On-Cost Batch.
    The Batch Selection form displays.
  6. Select the batch you wish to use and click OK.
    The AP Transaction Entry form displays. The system groups all payments to an on-cost vendor onto a single invoice, regardless of the original invoice's vendor.
  7. From the AP Transaction Entry form, run the AP On-Cost Reconciliation by Batch report by selecting Options > Reports > AP On-Cost Reconciliation by Batch. This report displays the on-cost invoice along with the associated original subcontractor invoices; the data for this report is similar to the data shown in the AP On-Cost Workfile form prior to creating the On-Cost batch.
    Note: Since the report relies on batch data that will no longer available after the batch has been posted, it is recommended that you print the report, or export it to a file, for later reference.
  8. Modify the invoices/transactions as necessary and then process and post the batch as normal.
  9. Continue with the normal payment posting process.
    Note: If you have set the subcontractor as subject to on-cost (you selected the Subject to On-Cost check box in the AP Vendors form, Add'l Info tab), the system selects the Subject to On-Cost check box for each invoice line in the AP Transaction Entry form. If you have specified a specific JC cost type for on-cost invoice job line associated with the subcontractor (JC Cost Type field in the AP Vendors form, Add'l Info tab), the system will compare the line's cost type with AP Vendors. If the cost types match, the Subject to On-Cost check box for the invoice line remains selected. If they do not match, the system clears the check box for the job invoice line. This means that on-cost invoices will not be generated for the line.