Use the Claims process to create, maintain, print, and approve/certify subcontract claims.

1. If you require approval for subcontract claims, select the Claim Approval Required check box (in SL Subcontract Entry) when creating the subcontract. This forces you to route claims through the AP Unapproved Invoice process.
   If you do not require approval for subcontract claims, leave the Claim Approval Required check box unselected. This allows you to send the claim to either AP Transaction Entry or AP Unapproved Invoice Entry.
2. Create a claim in SL Subcontract Claims.
   When you create a new claim in the SL Subcontract Claims form, all of the existing items on the subcontract are automatically added to the Items tab. You can use the Items tab to delete any subcontract items that do not apply to the claim.

   Note: You cannot add an item to a claim after it has been sent to the AP module. Additionally, if you add a subcontract item to the subcontract after you have created the claim (for example a change order creates a new item on the subcontract), the new subcontract item will not be on the claim
3. Use the Items tab on the SL Subcontract Claims form to enter the claim amount and certified / approved amount on each subcontract item.

   By default the system calculates retention on the claim using the work complete retention percentage entered on the subcontract items during creation. You can change the retention amount if needed. For more information, see Approved Retainage / Certified Retainage / Approved HoldBack.

4. If you are sending the claim to AP Transaction Entry, certify the claim by selecting the Certify option in the Claim Status field (Info tab). The Claim Date field automatically defaults the current date, but you may override as needed.
   Note: If you do not certify the claim, it will not appear in the SL Update to AP Trans grid when selecting claims to process.
   For claims being sent to AP Unapproved Invoice Entry, you can only certify the claim after you approve the invoice (see Step 6).
5. Send the claim to Accounts Payable.
   • AP Transaction Entry - Use this route if you do not require approval for subcontract claims and are sending them directly an AP Transaction Entry batch. For more information, see Send a claim to AP Transaction Entry.
   • AP Unapproved Invoice Entry - Use this route if you are using the AP unapproved invoice approval process. For more information, see Send a claim to AP Unapproved Invoice Entry.
   Note: When you send a claim to AP, the invoice total is the claim amount plus/minus the tax on the invoice, depending on the country.

   • Australia - the invoice total is the claim amount less the tax on the invoice. For example, if the claim amount is $25,000 and the tax amount is 5%($1,250), the invoice total is $23,750.
   • US/Canada - the invoice total is the claim amount plus the tax on the invoice. For example if the claim amount is $25,000 and the tax amount is 5%($1,250), the invoice total is $26,250.
6. If you sent the claim(s) to AP Unapproved Invoice Entry, do the following:.
   1. Approve the claim using the AP unapproved invoice review process. For detailed information, see About Unapproved AP Invoices
   2. Certify the claim in SL Subcontract Claims by selecting the Certify option in the Claim Status field. The Claim Date field automatically defaults the current date, but you may override as needed.