Subcontract Ledger

Subcontract Ledger (SL) module works with other accounting modules to monitor the progress of subcontracts.

The subcontracts can be created in the SL module, or in the PM module and then interfaced with the SL module using the PM Interface form.

The SL module interacts with Accounts Payable (AP) to provide the invoicing and payments to the subcontractor, and with Job Cost (JC) to track committed costs. Change orders, backcharges, and compliance tracking are also included in the processing of subcontracts in this module.

  • Subcontract Numbers - Generally subcontract numbers are in one of the following formats:

    • A combination of Job and Vendor numbers - for example the first six digits of the Job number and a six-digit Vendor number.

    • A combination of Job and Sequence numbers

    No matter which format you use, you should be consistent.

  • Automatically generated subcontract numbers - When creating a subcontract in the PM module (PM Subcontracts or PM Subcontract Detail), you can have the system automatically assign it a number. The system will select a number using the settings in the Subcontract Format Options section on the Subcontract Parameters tab of the PM Company Parameters form.
    Note: Numbers can only be generated automatically through the PM module; manual entry is still required in the SL Subcontract Entry form. It is recommended that when using the automatic numbering feature, manual subcontract entry uses the same format.
    When manually entering subcontract numbers in SL Subcontract Entry, the input is validated against both SL and PM to ensure duplicate numbers are not used.
  • Types of subcontract items - There are four types of items that can be set up for subcontracts in SL Subcontract Entry. To learn more, see Types of Subcontract Items.
  • Committed Costs and Units - Subcontract costs are updated to Job Cost as committed costs for the job. The total value of a subcontract (including any change orders and backcharges) impacts the Total and Remaining Committed Costs. As invoices are posted to the subcontract through the AP module, the Remaining Committed Costs are reduced. This figure is recalculated to be the remaining dollar amount or units multiplied by the current unit cost.
    Note: When you add an item to a subcontract, the system sends the tax rate amount to the committed cost fields in JC. If the tax rate amount changes, the system will not update the committed cost amounts. When relieving committed costs through AP, the system will relieve the original tax rate amount from the committed cost, but will use the current tax rate on the AP invoice.
  • Subcontract and Job Cost Files Impacted by SL Posting - See how regular items and change order items affect Subcontract and Job Cost balances here.
  • Updating Units to Job Cost - Changes to the Total and Remaining Committed Costs always update to the JCCP (JC Cost by Period) file, but how units are updated depends on the unit of measure assigned to the job, phase, and JC cost type. If the subcontract items unit of measure matches the JC unit of measure, the units are accumulated in JCCP. If the subcontract items units do not match, no units update will occur. For more information on the JCCP file, refer to Costs by Period in Related Topics below. Entries will be made to the JCCD (JC Cost Detail) file whenever changes are made to the Total and Remaining Committed Costs. Units will be expressed in the unit of measure assigned to the item. For more information on the JCCD file, refer to Transaction Detail in Related Topics below.
  • SL Worksheet: Generate AP invoices for subcontracts - Click here for an overview of the SL Worksheet form.
  • Multi-Company Processing - Multi-company processing is possible though for Subcontract Ledgers relationship with the Job Cost module. For more information, see About Multi-Company Processing.
  • Add-Ons Add-ons are used to handle additions and deductions to subcontracts that should be separated from other subcontract items, such as bonds, dues, and liquidated damages. To facilitate the use of add-ons, set up the various add-ons that your company uses in the SL Add-ons form. The type of add-on (percent or amount) determines how the add-on is calculated when entered in the SL Subcontract Entry form.
  • Backcharges - A backcharge is an accounting of costs for something that had to be provided because of the subcontractor. For more information, see About Subcontract Backcharges.
  • Claims - Use the Claims process to create, maintain, print, and approve/certify claim amounts. More
  • Work Flow - The Implementation Checklists and Processing Logs for this module are available in the Workflow module. To view the checklists and logs, use the WF Checklist Template form. For information on processing the checklists and logs, click here. If you do not have the Workflow module, use the WF Templates report (VA Reports menu) to view or print the checklists and logs.