Subcontracts: Generated Transactions
To record the services provided by a subcontractor for a particular project and update the balance of the vendor in the system, you create and process a subcontract and an AP bill. On release of the AP bill, the system generates GL transactions and project transactions described in the following sections.
General Ledger Transactions Generated on Bill Release
On release of a bill 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) | 0.00 | Amount |
| Expense account | Project and project task in the subcontract line | Amount | 0.00 |
The batch created on release of the accounts payable bill 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 AP Bill Release
On release of a batch created on release of the AP bill, 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 corresponding project in the Project box. In the table, you can find the project transaction with the Bill type in the Orig. Doc. Type column and the reference number of the AP bill in the Orig. Doc. Nbr. column.
Update of the Project Budget Lines
On release of the accounts payable bill 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 increased by the quantity in the bill line.
- Committed Invoiced Amount is increased by the amount in the bill line.
- Committed Open Quantity is reduced by the quantity in the bill line.
- Committed Open Amount is reduced by the quantity in the bill line.
- Actual Quantity is increased by the quantity in the bill line.
- Actual Amount is increased by the amount in the bill line.
- Performance (%) is recalculated based on the updated amounts and quantities.