Set up On-Cost Invoicing

An overview of the process to setting up on-cost invoicing.

These steps provide an overview; for more information about each step in the process, click the associated hyperlinks.
  1. In the AP On-Cost Types form, create on-cost types. These types identify a specific vendor (typically the corresponding federal agency) for sending on-cost payments, as well as the percentage rate or flat amount that they should receive based on the original invoice that you sent to the subcontractor. An on-cost type also determines the pay type and job expense options for the payment (if necessary). Users in Australia can also specify an ATO category.
  2. In the AP Vendors form, associate on-cost types with the subcontractors on whose behalf you are submitting on-cost payments.
  3. In the AP Vendors form (Add'l Info tab), set the subcontractor as subject to on-cost by selecting the Subject to On-Cost check box. You can also set a specific JC cost type for on-cost payments for this subcontractor by entering it in the JC Cost Type field.
With the subcontractor set as subject to on-cost, the system will generate on-cost invoices based on the original invoice that you paid to the subcontractor for their work for you.
Once you have set up the system for on-cost invoicing, you can process on-cost invoices.