Change Orders for Commitments: Commitment Updates on Release of Change Orders

The actions that the system performs on the release of a change order to commitment depends on the status specified in the Status column of the change order line on the Commitments tab of the Change Orders (PM308000) form. The following sections describe the effects of releasing a change order to commitment: which actions the system performs for lines with different statuses and how the existing project commitments and project budget are affected.

Processing a Line with the Update Status

On release of a commitment change order with a line with the Update status on the Commitments tab of the Change Orders (PM308000) form, the system updates the existing line of the corresponding commitment document. The commitment document can be a purchase order on the Purchase Orders (PO301000) form or subcontract on the Subcontracts (SC301000) form; the line is updated on the Details tab of either form.

The values in the commitment lines are updated as follows:

  • Order Qty.: The original Order Qty. of the commitment line plus (or minus) the Quantity of the corresponding commitment line of the change order.
  • Unit Cost: The Unit Cost of the corresponding commitment line of the change order.
  • Amount: The original Amount of the commitment line plus (or minus) the Amount of the corresponding commitment line of the change order.
    Tip:
    The system does not recalculate the amount based on the updated unit cost and quantity.
  • Ext. Cost: The original Ext. Cost of the commitment document line, plus (or minus) the Amount of the corresponding commitment line of the change order.
  • Requested: The Order Date of the corresponding commitment line of the change order.
  • Completed and Closed check boxes: Cleared.
  • Canceled check box: Cleared, except for the following case.

    In a commitment document line, the Order Qty. of lines with stock items cannot be 0. If a change order line with a negative amount is applied to a commitment document line with the stock item so that the resulting quantity must be 0, the system does not change the Order Qty., sets the Unbilled Qty. to 0, and selects the Canceled check box in the line to indicate that this line was canceled.

  • Retainage Amount and Retainage Percent: The Retainage Amount and Retainage Percent of the corresponding commitment line of the change order.

Processing a Line with the New Line Status

On release of a commitment change order with a line that has the New Line status on the Commitments tab of the Change Orders (PM308000) form, the system adds a new line to the existing commitment document. The commitment document can be a purchase order on the Purchase Orders (PO301000) form or subcontract on the Subcontracts (SC301000) form; the line is added to the Details tab of either form.

The column values in the newly created commitment line are specified as follows:

  • Order Qty.: The Quantity of the corresponding commitment line of the change order
  • Unit Cost: The Unit Cost of the corresponding commitment line of the change order
  • Ext. Cost: The Amount of the corresponding commitment line of the change order
  • Requested: The Order Date of the corresponding commitment line of the change order
  • Tax Category: The category of the corresponding commitment line of the change order
  • Retainage Amount and Retainage Percent: The Retainage Amount and Retainage Percent of the corresponding commitment line of the change order.

Processing a Line with the New Document Status

On release of a commitment change order with any New Document lines on the Commitments tab of the Change Orders (PM308000) form, the system groups these lines by vendor and creates a new commitment document of the type specified in the Commitment Type column of the change order line. The system creates a separate purchase order on the Purchase Orders (PO301000) form or subcontract on the Subcontracts (SC301000) form for each vendor and specifies the settings in the document as follows:

  • The date of the created purchase order or subcontract is the earliest Order Date of the commitment lines of the change order.
  • The Requested date of each purchase order line is the Order Date of the corresponding commitment line of the change order.
  • The description of the created purchase order or subcontract is Change Order #CONumber, where CONumber is the reference number of the change order.
  • The tax category in each line of the created purchase order or subcontract is the tax category that is specified in the corresponding commitment line of the change order
  • Retainage Amount and Retainage Percent: The Retainage Amount and Retainage Percent of the corresponding commitment line of the change order.
    Note:
    If you specify a nonzero retainage amount in the change order line, the system will select the Apply Retainage check box in the created new document, regardless of the retainage settings of the vendor.

Processing a Line with the Reopen Status

On release of a commitment change order with a line with the Reopen status on the Commitments tab of the Change Orders (PM308000) form, The system assigns the purchase order or subcontract the Open, Pending Printing, or Pending Email status. For more information, see Change Orders for Commitments: Commitment Reopening.

Updating the Project Budget

For each purchase order line on the Purchase Orders (PO301000) form or subcontract line on the Subcontracts (SC301000) form that was updated on a change order release, the system updates the corresponding project commitment. For each commitment document line that was created from a change order, the system creates a new project commitment. If the project has a cost budget line with the same project task, account group, and inventory item on the Cost Budget tab of the Projects (PM301000) form as the updated or newly created purchase order line has, the system updates the cost budget line of the project. Otherwise, the system creates a new cost budget line for the project based on the commitment.

In each updated cost budget line, the columns on the Cost Budget tab of the Projects form are updated (or left unchanged) as follows:

  • Original Committed Quantity is not changed.
  • Original Committed Amount is not changed.
  • Revised Committed Quantity is set to the sum of the Order Qty. of all the related commitment document lines.
  • Revised Committed Amount is set to the sum of the Ext. Cost of all the related commitment document lines.
  • Committed CO Quantity is set to Revised Committed Quantity minus Original Committed Quantity.
  • Committed CO Amount is set to Revised Committed Amount minus Original Committed Amount.
  • Committed Open Amount is set to Open Amount of the commitment document line.