Correction of a Bill for a Subcontract: Generated Transactions
To correct billed amounts and quantities for a subcontract, you create and process a debit adjustment to decrease the balance of a vendor in the system. When the debit adjustment is released, the system generates the transactions and updates the project budget as described in the following sections.
General Ledger Transactions Generated on Debit Adjustment Release
On release of a debit adjustment with one subcontract line, a batch of the following general ledger transactions is generated.
| Account | Project and Project Task | Debit Amount | Credit Amount |
|---|---|---|---|
| Accounts Payable account | X (Non-project code) | Correction amount | 0.00 |
| Expense account | Project and project task in the subcontract line | 0.00 | Correction amount |
The batch created on release of the debit adjustment is numbered in accordance with the numbering sequence selected in the Batch Numbering Sequence box on the Accounts Payable Preferences (AP101000) form. The batch number is specified on the Financial tab of the Bills and Adjustments (AP301000) form.
Project Transaction Generated on Debit Adjustment Release
On release of a batch created on release of the debit adjustment, the system generates the project transaction shown in the following table.
| Project and Project Task | Account Group | Cost Code (if applicable) | Inventory ID | Debit Account | Amount |
|---|---|---|---|---|---|
| Project and project task in the subcontract line | Account group mapped to Expense account | Cost code in the subcontract line | Non-stock item in the subcontract line | Expense account in the GL transaction | –(Amount) |
You can review the created project transaction on the Project Transaction Details (PM401000) form. In the Selection area of this form, you select the project in the Project box. In the table, you can find the project transaction with the Debit Adjustment type in the Orig. Doc. Type column and the reference number of the debit adjustment in the Orig. Doc. Nbr. column.
Update of the Project Budget Lines
On release of the debit adjustment created for the subcontract, the system updates the corresponding project budget values as follows in the columns on the Cost Budget tab of the Projects (PM301000) form:
- Committed Invoiced Quantity is reduced by the quantity in the debit adjustment line.
- Committed Invoiced Amount is reduced by the amount in the debit adjustment line.
- Committed Open Quantity is increased by the quantity in the debit adjustment line.
- Committed Open Amount is increased by the quantity in the debit adjustment line.
- Actual Quantity is reduced by the quantity in the debit adjustment line.
- Actual Amount is reduced by the amount in the debit adjustment line.
- Performance (%) is recalculated based on the updated amounts and quantities.