Consultant Course

Construction Edition

V300 Construction Edition

2022 R2

Revision: 10/24/2022
 Contents | 2

Contents
Copyright...............................................................................................................................................6
How to Use This Course.......................................................................................................................... 7
Company Story.....................................................................................................................................10
Part 1: Projects for Construction............................................................................................................11
Lesson 1: Reviewing Project Settings and Life Cycle..................................................................................... 11
Project Creation and Processing: General Information........................................................................11
Cost Codes: General Information.......................................................................................................... 12
Project Creation and Processing: Project Lifecycle.............................................................................. 13
Construction Project Budget: To Review Project Balance....................................................................15
Lesson 2: Capturing Project Costs.................................................................................................................. 18
Account Groups: General Information...................................................................................................18
Account Groups: To Create an Off-Balance Group................................................................................20
Project Transactions: General Information........................................................................................... 20
Construction Project Budget: To Capture Project Costs...................................................................... 22
Part 2: Subcontracts and Accounts Payable.............................................................................................26
Lesson 3: Processing Subcontracts.................................................................................................................26
Subcontracts: General Information....................................................................................................... 26
Subcontracts: Process Activity...............................................................................................................27
Lesson 4: Correcting Bills for Subcontracts................................................................................................... 30
Correction of a Bill for a Subcontract: General Information................................................................ 31
Correction of a Bill for a Subcontract: Process Activity........................................................................33
Correction of a Bill for a Subcontract: Generated Transactions.......................................................... 35
Lesson 5: Processing Negative Commitments............................................................................................... 36
Change Orders for Commitments: General Information...................................................................... 36
Change Orders for Commitments: To Create a Change Order Class....................................................39
Subcontracts: To Update a Negative Line in a Subcontract.................................................................40
Lesson 6: Processing AP Bills with Retainage................................................................................................ 43
AP Bills with Retainage: General Information.......................................................................................43
AP Bills with Retainage: Process Activity.............................................................................................. 45
Lesson 7: Preparing Payments for Projects....................................................................................................48
Vendor Payments for a Project: General Information.......................................................................... 49
Vendor Payments for a Project: To Process a Payment of Bill Lines....................................................52
Vendor Payments for a Project: Generated Transactions.....................................................................54
Lesson 8: Preparing Joint Payments.............................................................................................................. 54
 Contents | 3

Joint Payments: General Information................................................................................................... 54

Joint Payments: Process Activity...........................................................................................................56
Lesson 9: Processing Compliance Documents and Lien Waivers..................................................................58
Compliance Documents: General Information..................................................................................... 59
Compliance Documents: To Configure Attributes for Compliance Documents.................................. 60
Compliance Documents: To Track Compliance Documents for a Vendor........................................... 61
Compliance Documents: Lien Waivers.................................................................................................. 63
Compliance Documents: To Configure Lien Waivers............................................................................66
Compliance Documents: To Send Lien Waivers....................................................................................68
Lesson 10: Processing Purchases with a Sales Tax........................................................................................70
Purchases with a Sales Tax: General Information................................................................................ 70
Purchases with a Sales Tax: To Configure a Sales Tax for Project Purchases......................................71
Purchases with a Sales Tax: To Process a Project-Related Bill with a Tax........................................... 72
Part 3: Project Budget Tracking............................................................................................................. 75
Lesson 11: Forecasting Budget....................................................................................................................... 75
Budget Forecasts: General Information................................................................................................ 75
Budget Forecasts: To Prepare a Budget Forecast................................................................................. 76
Lesson 12: Tracking Budget Overruns............................................................................................................ 79
Project Budget: Budget Control on Document Entry........................................................................... 79
Construction Project Budget: To Track Project Budget Overrun......................................................... 80
Construction Project Budget: To Add a New Cost Code to the Project Budget...................................84
Lesson 13: Preparing Cost Projections........................................................................................................... 86
Project Cost Projections: General Information..................................................................................... 86
Project Cost Projections: To Create a Cost Projection Class................................................................ 87
Project Cost Projections: Process Activity.............................................................................................88
Part 4: Two-Tier Change Management.................................................................................................... 92
Change Management: General Information...................................................................................................92
Lesson 14: Configuring Two-Tier Change Management................................................................................ 95
Change Requests: Configuration of Markups........................................................................................95
Change Requests: Implementation Activity..........................................................................................97
Lesson 15: Tracking Cost Changes to Projects...............................................................................................98
Change Management: To Process Cost-Only Changes to a Project..................................................... 99
Lesson 16: Tracking Cost and Revenue Changes to Projects...................................................................... 102
Change Management: To Process Cost and Revenue Changes to a Project......................................102
Lesson 17: Track Changes to Budget Forecasts........................................................................................... 106
Change Management: To Track Changes in the Budget Forecast......................................................106
 Contents | 4

Part 5: Project Invoices....................................................................................................................... 109

Lesson 18: Billing Project for Progress with Retainage............................................................................... 109
AR Invoices with Retainage: General Information.............................................................................. 109
AR Invoices with Retainage: To Perform Progress Billing with Retainage......................................... 110
Construction Reports: General Information.................................................................................................113
Lesson 19: Preparing AIA Reports................................................................................................................. 114
Construction Reports: AIA Reports...................................................................................................... 114
Construction Reports: To Prepare AIA Report.....................................................................................116
Lesson 20: Preparing AIA Reports for Released Retainage.......................................................................... 118
Construction Reports: AIA Reports for Released Retainage............................................................... 118
Construction Reports: To Prepare AIA Report for Released Retainage.............................................. 119
Lesson 21: Correcting Pro Forma Invoices................................................................................................... 121
Pro Forma Invoice Correction: General Information.......................................................................... 122
Pro Forma Invoice Correction: To Correct Actual Amounts in AIA Reports....................................... 123
Lesson 22: Preparing WIP and Bonding Reports..........................................................................................126
Construction Reports: To Prepare a Bonding Report......................................................................... 126
Construction Reports: To Prepare a Work-in-Progress Report...........................................................127
Lesson 23: Tracking Retainage with a Cap................................................................................................... 128
Retainage with a Cap: General Information........................................................................................128
Retainage with a Cap: Process Activity............................................................................................... 130
Lesson 24: Billing Project for Time and Material with Retainage................................................................133
AR Invoices with Retainage: To Perform Time and Material Billing with Retainage..........................133
Part 6: Project Management................................................................................................................ 137
Lesson 25: Working with Daily Field Reports............................................................................................... 137
Daily Field Reports: General Information............................................................................................137
Daily Field Reports: To Configure Approval for Daily Field Reports...................................................140
Daily Field Reports: Process Activity................................................................................................... 141
Lesson 26: Working with Project Issues and Change Requests...................................................................145
Project Issue: General Information......................................................................................................145
Project Issue: Implementation Activity............................................................................................... 146
Project Issue: To Create a Change Request from a Project Issue ...................................................... 147
Lesson 27: Working with Requests for Information.....................................................................................149
Requests for Information: General Information................................................................................. 149
Requests for Information: To Process an Outgoing Request for Information................................... 150
Requests for Information: To Create a Request for Information from a Project Issue ..................... 153
Lesson 28: Working with Photo Logs............................................................................................................155
 Contents | 5

Photo Logs: General Information........................................................................................................ 156

Photo Logs: Implementation Activity..................................................................................................157
Photo Logs: Process Activity................................................................................................................ 158
Lesson 29: Working with Drawing Logs........................................................................................................ 160
Drawing Logs: General Information.....................................................................................................160
Drawing Logs: Implementation Activity.............................................................................................. 162
Drawing Logs: Process Activity............................................................................................................ 163
Lesson 30: Working with Submittals............................................................................................................ 165
Submittals: General Information......................................................................................................... 166
Submittals: Implementation Activity...................................................................................................169
Submittals: Process Activity.................................................................................................................170
Additional Information........................................................................................................................180
Appendix A: Subcontracts and Accounts Payable........................................................................................180
Subcontracts: Mass Processing ...........................................................................................................180
Subcontracts: Related Reports............................................................................................................ 180
AP Bills with Retainage: Mass-Processing of Documents...................................................................181
Correction of a Bill for a Subcontract: Related Report and Inquiry Forms........................................181
Vendor Payments by Project: Related Report and Inquiry Forms..................................................... 182
Purchases with a Sales Tax: Related Report and Inquiry Forms........................................................183
Appendix B: Change Management................................................................................................................183
Project Issue: Mass Processing............................................................................................................ 183
Appendix C: Projects with Retainage............................................................................................................184
AR Invoices with Retainage: Mass-Processing of Documents............................................................ 184
Pro Forma Invoice Correction: Related Reports and Forms...............................................................184
Appendix D: Project Documentation Management..................................................................................... 185
Daily Field Reports: Related Reports and Inquiry Forms................................................................... 185
Daily Field Reports: Mass Processing.................................................................................................. 186
Requests for Information: Mass-Processing of Documents............................................................... 186
Requests for Information: Related Reports.........................................................................................186
Photo Logs: Mass-Processing of Documents...................................................................................... 187
Drawing Logs: Related Report............................................................................................................. 187
Drawing Logs: Mass Processing........................................................................................................... 188
Submittals: Related Report..................................................................................................................188
 Copyright | 6

Copyright

© 2022 Acumatica, Inc.

ALL RIGHTS RESERVED.

No part of this document may be reproduced, copied, or transmitted without the express prior consent of
Acumatica, Inc.
3933 Lake Washington Blvd NE, # 350, Kirkland, WA 98033

Restricted Rights
The product is provided with restricted rights. Use, duplication, or disclosure by the United States Government is
subject to restrictions as set forth in the applicable License and Services Agreement and in subparagraph (c)(1)(ii)
of the Rights in Technical Data and Computer Soware clause at DFARS 252.227-7013 or subparagraphs (c)(1) and
(c)(2) of the Commercial Computer Soware-Restricted Rights at 48 CFR 52.227-19, as applicable.

Disclaimer
Acumatica, Inc. makes no representations or warranties with respect to the contents or use of this document, and
specifically disclaims any express or implied warranties of merchantability or fitness for any particular purpose.
Further, Acumatica, Inc. reserves the right to revise this document and make changes in its content at any time,
without obligation to notify any person or entity of such revisions or changes.

Trademarks
Acumatica is a registered trademark of Acumatica, Inc. HubSpot is a registered trademark of HubSpot, Inc.
Microso Exchange and Microso Exchange Server are registered trademarks of Microso Corporation. All other
product names and services herein are trademarks or service marks of their respective companies.

Soware Version: 2022 R2

Last Updated: 10/24/2022
 How to Use This Course | 7

How to Use This Course

This training course provides a set of lessons that illustrate the processes of construction project management
in a midsize company. The course consists of lessons that guide you step by step through the examples and
explanations of the configuration and business process flow in Acumatica ERP Construction Edition. The course is
divided into the following major parts:
• Part 1 provides a brief overview of projects, describes how projects are integrated with the general ledger,
explains the structure of the project budget, and explains how the project costs are captured.
• Part 2 is dedicated to managing subcontracts and commitments to projects. The lessons of the part
also describe the joint payment processing and illustrates how to set up compliance tracking for vendor
documents, and how to generate lien waivers.
• Part 3 is dedicated to working with construction project budget and estimating costs and revenues.
• Part 4 consists of lessons dedicated to managing cost and revenue budget changes.
• Part 5 explains how the retainage is calculated and applied to financial documents related to construction
projects. Also, this part includes the lessons dedicated to construction-specific reports.
• Part 6 is dedicated to project documentation management. The lessons of the part explain how to work with
photo logs, drawing logs, requests for information, daily field reports, and submittals.

What Is in This Guide

The guide includes the Company Story topic and process activities. The Company Story topic explains the
organizational structure of the company that has been preconfigured in the U100 dataset, as well as the company's
business processes and requirements. Each of the process activities of the course is dedicated to a particular user
scenario and consists of processing steps that you complete.

Which Training Environment You Should Use

All lessons of the course should be completed in an instance of Acumatica ERP 2022 R2 with the U100 training
dataset preloaded; this dataset provides the predefined settings and entities you will need as you complete the
activities of this course.
You or your system administrator need to prepare an instance of Acumatica ERP 2022 R2, as described in the How to
Create a Tenant with the U100 Dataset section below.

What Is in a Lesson
Each lesson provides a story describing a particular user scenario and an overview of the relevant features that
have been enabled in the system; configuration settings that are related to the described scenario are also listed.
The lesson provides a brief overview of the process that should be performed to complete the described scenario,
and instructions that guide you through the process in Acumatica ERP.

The lessons are independent and can be completed in any order. However, depending on the
sequence in which you complete the course lessons, the settings in the screenshots may differ from
the settings in the system.

What Is in Additional Materials

In the Additional Materials chapter, you can find the following information related to the processes and scenarios
covered in the corresponding parts of the guide:
• Additional information related to the processes
 How to Use This Course | 8

• Transactions generated as a result of the processes

• Details about the reports, inquires, and forms you can use to review and gather information related to the
processes
• Explanations on how to perform mass-processing operations related to the processes

What the Documentation Resources Are

Acumatica ERP provides a wide variety of documentation resources, which you can access from this course,
from the system, or from the Help portal. Applicable links are provided at relevant places throughout the course.
The complete Acumatica ERP documentation is available on https://help.acumatica.com/ and is included in the
Acumatica ERP instance.
While viewing any form used in the course (or any other Acumatica ERP form), you can click the Open Help button
in the top pane to bring up a form-specific Help menu; you can use the links on this menu to quickly access form-
related concepts and procedures and to open a reference topic with detailed descriptions of the form elements.

How to Create a Tenant with the U100 Dataset

Before you complete this course, you need to add a tenant with the U100 dataset to an existing Acumatica ERP
instance. You will then prepare the tenant for completing the activities. To complete this preparation, perform the
following instructions:
1. Go to Amazon Storage.
2. Open the folder that corresponds to the version of your Acumatica ERP instance.
3. In this folder, open the Snapshots folder, and download the u100.zip file.
4. Launch the Acumatica ERP instance, and sign in.
5. Open the Tenants (SM203520) form, and click Add New Record on the form toolbar.
6. In the Login Name box, type the name to be used for the tenant.
7. On the form toolbar, click Save.
8. On the Snapshots tab, click Import Snapshot.
9. In the Upload Snapshot Package dialog box, select the u100.zip file, which you have downloaded, and
click Upload.
The system uploads the snapshot and lists it on the Snapshots tab of the Tenants form.
10.On the form toolbar, click Restore Snapshot.
11.If the Warning dialog box appears, click Yes.
12.In the Restore Snapshot dialog box, make sure that the correct snapshot package is being uploaded, and
click OK. The system will restore the snapshot and sign you out.
You are now on the Sign-In page, and you can sign in to the tenant you have just created.

Which Credentials Should Be Used

To complete the lessons, sign in as the following users:
1. Lesson 1: ewatson
2. Lesson 2: ewatson, bsanchez
3. Lesson 3: ewatson
4. Lesson 4: ewatson
5. Lesson 5: gibbs, ewatson
 How to Use This Course | 9

6. Lesson 6: bsanchez
7. Lesson 7: bsanchez
8. Lesson 8: ewatson
9. Lesson 9: gibbs, ewatson
10.Lesson 10: gibbs, ewatson
11.Lesson 11: wendell
12.Lesson 12: ewatson
13.Lesson 13: ewatson, wendell
14.Lesson 14: gibbs
15.Lesson 15: ewatson
16.Lesson 16: ewatson
17.Lesson 17: ewatson
18.Lesson 18: ewatson, bsanchez
19.Lesson 19: ewatson
20.Lesson 20: bsanchez
21.Lesson 21: ewatson
22.Lesson 22: wendell
23.Lesson 23: ewatson
24.Lesson 24: ewatson
25.Lesson 25: gibbs, epsmith, ewatson
26.Lesson 26: gibbs, ewatson
27.Lesson 27: jwagner, epsmith
28.Lesson 28: gibbs
29.Lesson 29: epsmith, rsmith
30.Lesson 30: gibbs, ewatson

The password for each user is 123.

Which License You Should Use

For the educational purposes of this course, you use Acumatica ERP under the trial license, which does not require
activation and provides all available features. For the production use of this functionality, you have to activate the
license your organization has purchased. Each particular feature may be subject to additional licensing; please
consult the Acumatica ERP sales policy for details.
 Company Story | 10

Company Story
This topic explains the organizational structure and operational activity of the company you will work with during
this training.

Company Structure
The SweetLife Fruits & Jams company is a midsize company located in New York City.
The ToadGreen Building Group is a subsidiary of the SweetLife Fruits & Jams company. ToadGreen Building
Group—which is located in New York—is a general contractor coordinating construction projects for governmental
and commercial customers. The company has only one branch, ToadGreen Building Group, in which the
corresponding projects are being managed and all construction-related tasks are recorded. This branch has a
warehouse in which the materials purchased for construction projects are stored until they are transferred to
project site.

Operational Activity
The company has been operating starting in the 01-2022 financial period. In November 2022, the company started
using Acumatica ERP as an ERP and CRM system and migrated all data of the main office and retail store to
Acumatica ERP. The equipment center has begun its operations in 01-2023 in response to the company's growth.
In October 2022, the company received an investment and opened a subsidiary company for construction
(ToadGreen). In February 2023, the company started its first construction project.
The base currency of the company and its subsidiaries is the U.S. dollar (USD). All amounts in documents and
reports are expressed in U.S. dollars unless otherwise indicated.
 Part 1: Projects for Construction | 11

Part 1: Projects for Construction

Lesson 1: Reviewing Project Settings and Life Cycle

Project Creation and Processing: General Information

A project in Acumatica ERP is a one-time endeavor with its own budget, costs, and revenues; the funding and
deliverables of a project are usually finite. In the system, a project contains various specifications that affect project
completion, such as the date range, customer, and resources (including employees and equipment).

Learning Objectives
In this chapter, you will learn how to do the following:
• Plan a project structure
• Create a project and specify its settings
• Plan the structure of the project budget
• Process a project during its lifecycle

Applicable Scenarios
You create a project to plan work to be performed for a customer, define budgets for the planned work, track the
progress of completion of the planned work, bill the customers for the provided services, and track the costs and
revenues of the provided services.

Project Settings
You create a new project and specify its settings on the Projects (PM301000) form. When you are manually adding a
new project to the system, you enter the following information:
• General information: This information includes the description, start date, end date, project manager,
project address information, the project currency, and the branch to which the project belongs. You can also
specify a billing rule to be assigned to project tasks by default.
• Billing schedule: You define whether you will use direct AR invoices when billing the project, or use the
pro forma invoices workflows. Then you determine when the project is billed: on the date of the customer
statement, at the end of each month, at the end of each quarter, or at the end of each year.
• Project tasks: You define the project tasks of the project. A project task in a project is a separate work unit
with its own lifecycle, budget, cost, revenue, and billing rule. Budgeted, revised, and actual amounts in the
project are tracked by account group balances, each of which is the total of all the corresponding amounts
in the project tasks. That is, the project does not have any balances beyond those in the project tasks of the
project.
• Budget: You define the level of details for cost budget and for revenue budget. Then you specify the budget,
which holds the estimated expenses and revenues for a project.
• Default GL accounts: You define the general ledger accounts to be used by default in project-related
documents.
 Part 1: Projects for Construction | 12

Type of Projects
You can use projects for tracking activities involving customer interaction (external projects) and in-house
work (internal projects). The key objective of external projects is balancing costs and income to make sure the
organization remains profitable, while meeting project goals and maximizing customer satisfaction. The scope
of internal projects is typically limited to the physical and organizational boundaries of your organization; these
projects serve the needs of the organization and never produce any revenue.
Depending on which activities you are going to track, you can configure projects of the following types:
• A fixed-price project, which is an external project in which services and products are provided to customers
at a fixed price; the price of the project is defined at the beginning of the project and is not changed during
its completion (unless any change orders are processed for the project).
• A cost-plus project, which is an external project in which the prices are calculated as a percentage of the
costs. The final price of the cost-plus project depends on the overall cost of fulfilling the project, and the
costs may be billed with or without a premium.
• An internal project, which is used to track activities completed within your company. The scope of these
projects is limited to the physical and organizational boundaries of an organization; these projects serve the
needs of the organization and never produce any revenue. Internal projects have budgets, do not include
billing settings, and are not associated with any customer.

Cost Codes: General Information

A cost code represents an additional classification level for project revenues and costs in a construction project.
You can associate cost codes with system documents and document lines in which projects are referenced, such as
general ledger transactions, accounts payable bills, purchase orders, accounts receivable invoices, expense entries,
time cards, and lines of project budgets.

Learning Objectives
In this chapter, you will learn how to do the following:
• Plan the structure of cost codes to be used in construction projects
• Configure the structure of the cost code identifier and define cost codes
• Configure cost code tracking in the revenue budget lines of the project budget
• Configure cost code tracking in the cost budget lines of the project budget

Applicable Scenarios
You create cost codes and configure a project to use these cost codes if you need to further classify revenues and
expenses in a budget of a construction project.

Cost Code Configuration

By tracking revenues and expenses by cost codes, you can analyze how much each project task costs, what the
revenue is, and how the tracked values compare with the budgeted ones.
To define the cost codes to be used in your projects, you need to perform the following tasks:
1. Plan the structure of cost code identifiers and the cost codes to be used based on the processes in your
organization.
2. Modify the COSTCODE segmented key based on your planned structure, if necessary.
 Part 1: Projects for Construction | 13

3. Add the planned cost codes to the table on the Cost Codes (PM209500) form.
4. Configure the use of cost codes in the cost budget and revenue budget of a particular project.

You can prepare the list of cost codes in an .xlsx or .csv file and upload the file to the Cost Codes form.
Alternatively, you can add cost codes one by one on the form.

Project Budget Tracking by Cost Codes

When you create a document or a document line (or both) that you want to associate with a particular cost code,
you first specify the applicable GL account, project, and project task for the line; you then assign the appropriate
cost code to the line. In the lookup table that opens when you click the selector button on the applicable form,
the system lists the cost codes that are used in budget lines of the project you have selected for the document
or document line. The lookup table also lists the budget lines that have the same project task and the account
group that corresponds to the GL account selected for the document or document line. You can select any of the
available cost codes, or select a cost code that has not yet been used for the combination of project, project task,
and account group.
For a project, on the Summary tab (Project Properties section) of the Projects (PM301000) form, you can use the
Revenue Budget Level and Cost Budget Level boxes to specify the way the system represents budget lines and
classify revenues or expenses by cost codes as well as other factors. You do this by selecting the needed options in
the Revenue Budget Level and Cost Budget Level boxes as follows:
• If you select Task and Cost Code or Task, Item, and Cost Code in the Revenue Budget Level box, you can view
revenue budget lines by cost codes on the Revenue Budget tab of the Projects form for the project, and you
can bill the project with the selected revenue budget level for progress.
• If you select Task and Cost Code or Task, Item, and Cost Code in the Cost Budget Level box, you can view cost
budget lines by cost codes on the Cost Budget tab of the Projects form for the project. You can also bill the
project with the selected cost budget level for time and material.
You can change the cost code for each cost budget or revenue budget line manually, if needed.

Project Creation and Processing: Project Lifecycle

In Acumatica ERP, a project is a one-time or recurring endeavor with a specific scope, time frame, and budget.
The following diagram shows the stages a project goes through and the statuses it is assigned from the project’s
initiation to its completion.
 Part 1: Projects for Construction | 14

The stages are described in greater detail in the sections below.

Project Estimation
During the project estimation stage, you specify project settings on the Projects (PM301000) form, define activities,
estimate the time required for the completion of each project task, and populate the project with employees,
resources, and equipment. Each project is assigned the In Planning status once it has been created and saved in the
system.
Projects and project tasks with the In Planning status cannot be selected in any documents, except for the following
types of documents that are available for planning:
• Employee activities. For instance, you can add an employee activity for planning budgets for project tasks.
However, the transactions generated for any of these activities cannot be released until the corresponding
project and project task are assigned the Active status.
• Project commitments (purchase orders and subcontracts). Planned project commitments could be
processed aer the corresponding project and project task are assigned the Active status.

Project Acceptance
The acceptance stage includes reaching an agreement with all the stakeholders, including customers and
employees, as well as estimating the budget for the project and the expenditures it will entail.
If the approval of projects is required in your system, the project is submitted for approval and is assigned the
Pending Approval status once it is taken off hold. The project has this status until it is approved or rejected on
the Approvals (EP503010) form by an assigned employee. If approved, the project is assigned the Active status. If
rejected, the project is assigned the In Planning status and requires additional changes before it can be submitted
for approval again. For more information on approvals, see Approval of Projects and Project-Related Activities.
 Part 1: Projects for Construction | 15

Project Execution
During the execution stage, the project is in progress and project transactions can be posted to it. In this stage, the
project retains the Active status. Active projects and their project tasks are available for selection on the forms of
the functional areas in which the projects are visible. When you create a project-related transaction or document,
you need to specify the particular project and project task to indicate that this transaction or document must be
tracked within the project; also, you can specify whether the transaction or document is billable. Transactions in
which the non-project code is specified are not tracked in any project.
If any budget changes occur during the course of the project, the system preserves the initial budget amounts, and
tracks the revised figures for the project budget.

Project Completion
Project tasks are completed individually; the completion of a project task does not affect the completion of the
project to which the task belongs. Once the project is finished, the project accountant completes it by manually
assigning it the Completed status, and analyzes the project profitability. Project transactions can no longer be
posted to a project with the Completed status.

To simplify the tracking of the project completion percentage, you can create a separate dedicated
task and use it exclusively to manually specify the project completion percentage, which you
evaluate by using all the information available about the progress of project tasks and project-related
transactions.

Construction Project Budget: To Review Project Balance

The following activity will walk you through the process of reviewing the structure, settings, and balances of a
project.

Story
Suppose that ToadGreen Building Group is a general contractor building an Italian restaurant for its customer, the
Italian Company. A ToadGreen manager has created a project for the work to be performed, and the budget has
been agreed on with the customer.
Acting as the construction project manager, you need to review the project balances to become familiar with the
project and gather all the information about performed work.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction and Construction Project Management
features have been enabled.
• On the Projects (PM301000) form, the ITALIAN project has been defined.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as construction project manager by using the ewatson username and the 123 password.
 Part 1: Projects for Construction | 16

2. On the Projects Preferences (PM101000) form, on the General tab (General Settings section), select
the Internal Cost Commitment Tracking check box, and save your changes to the project accounting
preferences. This exposes the committed values of the budget.

Step 1: Reviewing the Billing Settings of the Project

To review the main settings and the structure of the project for the Italian Company, do the following:
1. On the Projects (PM301000) form, open the ITALIAN project.
In the Summary area of the form, notice that the project's status is Active. With this status, transactions and
documents can be recorded on this project. Also notice that the project is being performed for the ITACOM
customer.
2. On the Summary tab, review the billing settings of the project, and notice the following:
• The TM billing rule is specified in the Billing Rule box. This billing rule is used as the default value
for newly created project tasks. A billing rule determines how progress billing amounts or project
transactions (or both) are billed for the project.
• Billing Period is set to Month, which means that Next Billing Date is auto-incremented by a month aer
every run of the project billing process. The billing period is specified for a new project and cannot be
changed thereaer.
• The Create Pro Forma Invoice on Billing check box is selected, which means that during the project
billing process, the system creates a pro forma invoice. A pro forma invoice can be created only
automatically during the project billing process. On release of the pro forma invoice, an AR invoice is
created.
3. On the Tasks tab, make sure that all the project tasks have the Active status (as shown in the following
screenshot). With this status, transactions and documents can be recorded to those tasks. Notice that the
Billing Rule column is filled in for all tasks—that is, the billing rule is specified at the project task level.
You can change the billing rule for any task, which provides a high level of flexibility of project billing
configuration.

Figure: Project tasks of the ITALIAN project

 Part 1: Projects for Construction | 17

Step 2: Reviewing the Project Budget

Perform the following instructions to review how the project balances are tracked:
1. While you are still viewing the ITALIAN project on the Projects (PM301000) form, on the Summary tab,
review the Cost Budget Level setting, which defines the level of detail for the budget structure on the
Cost Budget tab. The selected level of detail, Task and Cost Code, indicates that the budget figures and
the auto-calculated values are determined for the project by account group, project task, and cost code.
Corresponding columns with these settings are available for reviewing and editing on the Cost Budget tab.
2. On the Cost Budget tab, select the Group by Task check box. The system groups the cost budget lines with
the same task into a single line and shows the total for each column of the table in the bottom-most row.
3. Move the Potential CO Amount column by dragging it aer the Revised Budgeted Amount column, and
review the cost budget of the project. The cost budget information is divided into the following buckets—
that is, groups of columns with similar budget information (see the screenshot below):
• Budgeted (the columns with Budgeted in the names; see Item 1 in the screenshot below): The planned
costs of the project. The original budgeted values are entered manually for the project on the Cost
Budget tab of the Projects form, or on the Project Budget (PM309000) form. Revised budgeted values can
also be entered manually if change orders are not used.
• Potential (the Potential CO Amount column; Item 2): The total quantity of the estimation lines of change
requests that have the Open status plus the total quantity of the revenue budget lines of the change
orders that have the On Hold, Open, or Pending Approval status and are associated with the same project,
project task, account group, and cost code or inventory item. These totals are calculated automatically.
• Committed (the columns with Committed in their names; Item 3) The total amounts and total quantities
of commitments (subcontracts and purchase orders), with a breakdown by the stage of the process (such
as open or invoiced). These totals are calculated automatically.
• Actual (the columns with Actual in their names; Item 4): The total amounts and total quantities of project
transactions released. These totals are calculated automatically.

Figure: Cost budget information of the project

4. On the Summary tab of the Projects form, review the Revenue Budget Level setting, which defines the
level of detail for the budget structure on the Revenue Budget tab. The selected level of detail, Task and
Cost Code, indicates that the budget figures and the auto-calculated values are determined for the project
 Part 1: Projects for Construction | 18

by account group, project task, and cost code. Corresponding columns with these settings are available for
reviewing and editing on the Revenue Budget tab.
5. On the Revenue Budget tab, review the revenue budget lines specified for the project (which are grouped
into similar buckets as those for the cost budget lines).
Notice that each record on the Revenue Budget tab has a unique combination of values in the Project
Task, Cost Code, and Account Group columns (the project budget key). When a revenue project transaction
is released, if there is a budget record with the project task, cost code, and account group that match
the transaction, the actual quantity and actual amount are updated in that budget record. If there is no
matching budget record, the system creates a new budget line with budgeted amounts of zero and with
actual amounts from the transaction.
6. On the General tab of the Projects Preferences form (General Settings section), review the Revenue Budget
Update setting, which is set to Detailed. This means that a new budget record is created with information
from the project transaction at the budget level of detail. For the revenue budget of the ITALIAN project, this
is the project task, cost code, and account group of the project transaction. The same update logic applies
to commitments, change orders, and change requests.

If you select Summary in this box, the budget records will be created with information from
the project transaction grouped by project task and account group. This mode is useful if only
certain articles are budgeted at a very detailed level, but there may be many transactions
processed with different cost codes and items, and all those miscellaneous transactions are
budgeted in a single line of a project.

The structure of cost budget is determined independently from the revenue budget structure. Similar rules
apply to the cost budget structure of a project. Thus, the Cost Budget Level setting can be specified for
a project on the Summary tab of the Projects (PM301000) form, and the respective Cost Budget Update
setting (Summary or Detailed) is specified on the General tab of the Projects Preferences form; this setting
determines the level of detail for the budget record that is created if there is no matching record (that is, a
record with the same project budget key) for a cost project transaction being released.

You have reviewed the project settings and project budget.

Lesson 2: Capturing Project Costs

Account Groups: General Information

An account group is an entity in Acumatica ERP that you map to a subset of general ledger accounts and then
specify in project-related documents. Because they are mapped to general ledger accounts, account groups
facilitate transfer of the project-related financial information between the general ledger transactions and project
transactions.

Learning Objectives
In this chapter, you will learn how to do the following:
• Prepare the system for the creation of account groups
• Create an account group and map accounts to this group
• Review the chart of accounts and find the account group associated with a particular GL account
 Part 1: Projects for Construction | 19

Applicable Scenarios
You may need to create an account group in the following cases:
• When you are initially configuring project accounting functionality
• When you are going to track a particular type of expenses or another type of project balances separately

Types of Account Groups

You create account groups on the Account Groups (PM201000) form. An account group can belong to one of the
following types: Asset, Liability, Expense, Income, or Off-Balance. An account group may include any number of
general ledger accounts of particular types:
• An account group of the Asset or Liability type may include asset or liability accounts. Transactions posted
to these account groups are displayed on the Project Budget (PM309000) form and on the Balances tab of
the Projects (PM301000) form, but are not displayed on the Revenue Budget and Cost Budget tabs of the
Projects form.
• An account group of the Income or Expense type may include accounts of any type (income, expense, asset,
or liability). Transactions posted to these account groups are displayed on the Project Budget form, on the
Balances tab of the Projects form, and on the Revenue Budget and Cost Budget tabs of the Projects form.
• Account groups of the Off-Balance type are not mapped to any general ledger accounts.
You can use account groups of the Off-Balance type to collect and track project statistical and other
information that is unrelated to finance. The transactions posted to account groups of this type will not
update the general ledger. For example, you might define an off-balance group for unrecognized revenue:
You may want to see the amount in your project reporting, but you do not want to post to the general ledger
until the actual billing is done and thus the revenue is recognized. As another example, you can create an
off-balance group for recording all work hours spent by employees on the project if you want to know the
total amount associated with the number of work hours spent, but you do not want to post this amount
to the general ledger. In addition, you can select the Expense check box to track the amounts in the off-
balance account group as expenses. The system displays the transactions posted to this account group on
the Project Budget form and on the Balances and Cost Budget tabs of the Projects form.

Recommendations for Creating Account Groups

Before you define account groups, you should identify the accounts that will be used in project-related
transactions. We recommend that you consider the following rules and limitations as you plan the account groups
you will create:
• Each general ledger account can be mapped to only one account group.
• Accounts receivable accounts (accounts debited by project billing) and accounts payable accounts
(accounts credited by vendor bills) should not be included in account groups.
• Accounts that are linked to cash accounts—that is, accounts for which the Cash Account check box is
selected on the Chart of Accounts (GL202500) form—should not be included in account groups.
• Allocation and billing rules select transactions by account groups. If transactions of two accounts should
follow different allocation or billing rules or use different rates, these two accounts should be included in
different account groups. If the transactions usually use the same rate, consider including their accounts in
one group.
 Part 1: Projects for Construction | 20

Account Groups: To Create an Off-Balance Group

In this implementation activity, you will learn how to create an account group to be used for collecting statistical
information.

Story
Suppose that you are a construction project manager who is configuring project accounting for the ToadGreen
Building Group company. You want to know the total amount associated with the number of work hours spent by
employees on construction projects (including an extra work beyond the budgeted number of work hours), but you
do not want to post these amounts to the general ledger because these expenses are billed monthly under separate
project budget lines related to labor.
You need to create an off-balance account group for tracking burden expenses in construction projects.

Step: Creating an Account Group

To create an account group for tracking burden expenses, do the following:
1. On the Account Groups (PM201000) form, add a new record.
2. In the Account Group ID box, type BURDEN.
Notice that the Active check box is selected by default.
3. In the Type box, select Off-Balance.
4. In the Description box, type Burden Expenses.
5. Save the account group.

Project Transactions: General Information

Project accounting is integrated with other functional areas of Acumatica ERP. Project-related information from
other functional areas flows to projects by means of project transactions that are used for tracking budget costs
and revenue. You can also create project transactions directly without involving other documents.

Learning Objectives
In this chapter, you will learn how to do the following:
• Capture project costs using project transactions
• Make the system create a project transaction based on a GL transaction
• Create a project transaction without posting to the general ledger

Applicable Scenarios
You manually create project transactions if you need to directly capture project costs without updating the general
ledger. The transactions created for a project update the actual values of the project budget with the incurred
expenses that you may need in one of the following cases:
• To control the amount of money spent on the project against the budgeted values
• To bill the customer for the incurred expenses
 Part 1: Projects for Construction | 21

• To control the project profitability

You manually create general ledger transactions for a project if you need to directly capture project costs without
creating original documents (such as bills, purchase orders, or time activities).

Creation of Project Transactions

You can create a project transaction directly on the Project Transactions (PM304000) form. When you specify the
Debit Account and Credit Account for the project transaction and release the transaction, the system creates the
following general ledger transactions on the Journal Transactions (GL301010) form, based on whether the amount
of the project transaction is positive or negative:
• For a positive amount, the GL transaction debits the debit account of the project transaction and credits the
credit account.
• For a negative amount, the GL transaction debits the credit account of the project transaction and credits
the debit account.
If you specify no debit and credit accounts for a project transaction on the Project Transactions form or specify
only the debit account, on the release of the transaction, the system does not generate the corresponding GL
transaction.

Project Budget Update

The system uses the combination of the project, project task, account group, and inventory item to match the
transaction with a project budget line. If a budget line with the same combination exists, the system updates the
Actual Quantity and Actual Amount of the corresponding budget line. For a new combination that does not exist
in the project budget, the system creates a new budget line.
For the revenue budget, the system creates a revenue budget line with the same inventory item as the inventory
item of the transaction if the Detailed option is selected in the Revenue Budget Update box on the General tab
(General Settings section) of the Projects Preferences (PM101000) form. With the Summary option selected,
the system creates a revenue budget line with the empty item code (N/A) instead of the inventory item of the
transaction. Similarly, the system creates cost budget lines based on the option selected in the Cost Budget
Update box on the General tab (General Settings section) of the Projects Preferences form.
If the project does not have such a line, the system automatically creates a new one. The system updates the actual
values of the project budget line using the following rules:
• If the debit account of the project transaction is an asset or expense account and the amount is positive, the
system updates the corresponding cost budget line with positive actual values. If the amount is negative,
the system updates the cost budget line with negative actual values.
• If the debit account of the project transaction is an income or liability account and the amount is positive,
the system updates the corresponding revenue budget line with negative actual values. If the amount is
negative, the system updates the revenue budget line with positive actual values.
If an income or liability account is selected as the credit account of the project transaction and the amount
is positive, the system updates the corresponding revenue budget line with positive actual values.

Creation of GL Transactions Related to Projects

On the Journal Transactions (GL301000) form, you can directly create a general ledger transaction related to a
specific project and project task. To associate the transaction line with a project, you specify this project in the
Project/Contract column and the applicable project task in the Project Task column.
If a general ledger transaction has a project and project task specified, in the Account column on the Journal
Transactions form, you can select only an account that is mapped to an account group on the Account Groups
(PM201000) form.
 Part 1: Projects for Construction | 22

When a batch of GL transactions is released, for each transaction line in the batch with a project and project task
specified, the system creates the corresponding project transaction with the following settings specified in a row of
the table on the Project Transactions (PM304000) form:
• Project: The project associated with the GL transaction
• Project Task: The project task associated with the GL transaction
• Inventory ID: The inventory item associated with the GL transaction
If no item is associated with the GL transaction, the system uses the empty item code, which is <N/A> by
default and specified on the Projects Preferences (PM101000) form.
• Debit Account: The account of the GL transaction
• Account Group: The account group to which the account of the GL transaction is mapped on the Account
Groups form
• Credit Account: Empty
• Amount: The debit amount of the GL transaction, if the account of the GL transaction is debited, or the
credit amount of the GL transaction with the negative sign, if the account of the GL transaction is credited
• GL Batch Nbr.: The batch number of the GL transaction

When a transaction is generated in another functional area of Acumatica ERP—such as accounts

receivable, accounts payable, order management, or time and expenses—and posted to the general
ledger, the system generates the corresponding project transaction in the same way as on the release
of GL transactions.

Construction Project Budget: To Capture Project Costs

This activity will walk you through the process of capturing project costs by using project transactions.

Story
Suppose that ToadGreen Building Group is a general contractor building an Italian restaurant for its customer, the
Italian Company. At the start of the project, the construction project manager made sure that the construction
permit was promptly obtained for the construction site and that the design plans and specifications were prepared
and agreed upon. The expenses related to the work must be reflected in the project budget and categorized in
the general ledger because they will later be billed and reflected in financial statements. Further suppose that the
construction manger has spent some time on extra communication, which has not initially been budgeted. This
time should not be billed because the project manager's salary is fixed and is billed monthly under a separate
project budget line related to labor. However, these expenses must be reflected in the project budget for better
estimation of the burden and overhead of the construction project.
Acting as the project accountant, you will enter the general ledger transactions to directly capture the costs
and record the work related to gathering the requirements, getting all the necessary construction permits, and
preparing the design plans and specifications. Then you will enter the project transaction to capture the additional
expenses incurred by the construction project manager.

A project transaction that does not affect the general ledger can also be billed if necessary. In this
activity, the processed project transaction will be le as an internal burden expense for informational
purposes and will not be billed or allocated.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
 Part 1: Projects for Construction | 23

• The Construction feature has been enabled on the Enable/Disable Features (CS100000) form to provide
support for the construction functionality.
• On the Project Templates (PM208000) form, the CONTM project template has been created. This project
template provides default settings for a construction project billed for time and material.

Process Overview
On the Journal Transactions (GL301000) form, you will create a batch of general ledger transactions with the project,
project task, and cost code specified to record the work related to the first phase of the construction project.
You will release the batch, which will generate the corresponding project transaction. Then you will review this
transaction on the Project Transaction Details (PM401000) form. Finally, on the Project Transactions (PM304000)
form, you will create a batch of project transactions that represent additional work performed by the construction
project manager that will not be billed and do not affect the general ledger; you will then release this batch.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to a company with the U100 dataset preloaded; you should sign in as a project accountant by using
the bsanchez username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 4/15/2023. If a different date is displayed, click the Business Date menu
button, and select 4/15/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Creating General Ledger Transactions

To create a batch of general ledger transactions to represent the work related to the first phase of the construction
project, do the following:
1. Open the Journal Transactions (GL301000) form.
2. On the form toolbar, click Add New Record to create a new batch of general ledger transactions, and in the
Summary area, make sure GL is selected as the Module.
3. In the Description box, type Construction permits, design plans, specifications.
4. On the table toolbar, click Add Row to add the first row, which represents the expenses associated with
procuring construction permits, and specify the following settings in the row:
• Account: 54300 - Project Other Expense
• Project/Contract: ITALIAN3
• Project Task: 01 - General Requirements
• Cost Code: 01-300
• Debit Amount: 15,400
• Transaction Description: Construction permits
5. Add a second row, which represents the expenses for design plans and specifications, and specify the
following settings in the row:
• Account: 54300 - Project Other Expense
• Project/Contract: ITALIAN3
• Project Task: 01 - General Requirements
• Cost Code: 01-330
• Debit Amount: 37,500
• Credit Amount: 0
 Part 1: Projects for Construction | 24

• Transaction Description: Design plans and specifications

6. Add a third row, which balances the batch of transactions, and specify the following settings in the row:
• Account: 23015 - Accrued Expenses
• Project: X (inserted automatically)
• Cost Code: 00-000 (inserted automatically)
• Credit Amount: 52,900 (inserted automatically)
7. On the form toolbar, click Remove Hold to assign the general ledger transaction the Balanced status, and
then click Release to release the transaction.
When you release the general ledger transaction, for the line with the specified project and project task, the
system creates the corresponding project transaction. In the created project transaction, the system inserts
the account group to which the account in the transaction line is mapped.
8. On the Project Transaction Details (PM401000) form, in the Summary area, select ITALIAN3 as the Project. In
the table, review the project transaction (shown in the following screenshot) that has been created based on
the GL transaction that you have processed earlier.

Figure: Project transaction prepared on release of the GL transaction

9. On the Projects (PM301000) form, open the ITALIAN3 project, and on the Cost Budget tab, review the cost
budget lines with the 01-300 and 01-330 cost codes. Notice that the actual amounts in these lines have been
updated with the amounts from the project transaction.

Step 2: Creating a Project Transaction Without Posting to the General Ledger

To create a project transaction that represents the additional expenses, which do not affect the general ledger, do
the following:
1. Open the Project Transactions (PM304000) form.
2. On the form toolbar, click Add New Record to create a new project transaction, and in the Summary area,
make sure PM is selected as the Module.
3. Enter Additional operational expenses (ITALIAN3 project) as the Description.
4. On the table toolbar, click Add Row, and specify the following settings in the added row:
• Project: ITALIAN3
• Project Task: 01
• Cost Code: 01-311
Notice that the system warns you that the budget line with this project task, cost code, and account
group has not been initially planned in the cost budget of the project.
• Account Group: BURDEN
• UOM: HOUR
• Quantity: 20
• Billable: Cleared
 Part 1: Projects for Construction | 25

• Amount: 1,200
You leave the Debit Account and Credit Account columns empty, so that the corresponding general ledger
transaction will not be created. The system also will not use this transaction for billing because you cleared
the Billable check box in the line.
5. On the form toolbar, click Release to save your changes to the project transaction and release it.
Notice that the GL Batch Nbr. column is empty, indicating that no corresponding general ledger transaction
has been created.
6. On the Projects (PM301000) form, open the ITALIAN3 project, and on the Cost Budget tab, notice that a new
cost budget line has been added to the budget (shown in the following screenshot) based on the project
transaction that you created and released. The original budgeted values in the line are zero; the actual
values in the line have been updated based on the project transaction that you have processed.

Figure: Project transactions prepared on release of the GL transaction

You have finished capturing costs for the project.

 Part 2: Subcontracts and Accounts Payable | 26

Part 2: Subcontracts and Accounts Payable

Lesson 3: Processing Subcontracts

Subcontracts: General Information

In Acumatica ERP Construction Edition, subcontract is a document that represents a commitment with a third-
party vendor (subcontractor) to provide services for a project.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create a subcontract
• Add lines related to a particular project to a subcontract
• Enter the accounts payable bill for the subcontract

Applicable Scenarios
You enter and process subcontracts for a project when your company hires another company to perform a part of
the work for a project.

Subcontract Processing
In general, the Subcontracts (SC301000) form is the starting point for creating a subcontract. In a newly created
subcontract, you should first select the vendor (that is, the subcontractor who will provide the services). Then on
the Details tab, you list the lines that represent the work and services that will be performed by the subcontractor.
For each line, you specify the project budget key—that is, the project, the project task, and, optionally, the
inventory ID and cost code—to record this commitment to the cost budget of the project. In a line, you can leave
the Inventory ID box empty, or specify a non-stock item that does not require a receipt (that is, an item that has the
Require Receipt check box cleared on the General tab of the Non-Stock Items (IN202000) form).
You can also add lines from a particular project. To do this, you click the Add Project Item button on the table
toolbar of this tab; in the Add Project Items dialog box, which opens, you select the project and the applicable cost
budget lines of this project.
Once the services have been provided by the subcontractor, you need to process an accounts payable bill. On
release of the bill, the system increases the vendor's balance in the system in the amount to be paid for received
goods and updates the project's actual amount and quantity. If all the lines in the subcontract have been billed in
full, the system assigns the subcontract the Closed status. For more information on the rules that affect line closing
and completion, see Stock Item Lines in Purchase Orders.

If the Internal Cost Commitment Tracking check box is selected on the General tab of the Projects
Preferences (PM101000) form, the system tracks subcontracts as commitments to related projects.
For more information, see Committed Costs: General Information and Change Orders for Commitments:
General Information.
 Part 2: Subcontracts and Accounts Payable | 27

Workflow of the Processing of a Subcontract

The typical process of working with subcontracts involves the actions and generated documents shown in the
following diagram.

Subcontracts: Process Activity

This activity will walk you through the process of working with a subcontract.

Story
Suppose that on March 15, 2023, the ToadGreen company hires a subcontractor, Standard Hardware Company,
to install windows and doors in the hotel that is being built by ToadGreen. Both parties agree that the Standard
Hardware Company will perform the installation of windows, the installation of doors and frames, and the building
an entrance. Normally, this subcontractor does not require the printing of documents, but for this subcontract,
the construction project manager of the ToadGreen company has decided to create and print the subcontract.
On March 25, 2023, when the subcontractor finishes its part of the work and sends an invoice to ToadGreen,
ToadGreen’s project manager will create a bill and pay for the provided services.
 Part 2: Subcontracts and Accounts Payable | 28

Acting as the construction project manager, you will process all the needed documents in the system.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction feature has been enabled.
• On the Vendors (AP303000) form, the HARDCO (Standard Hardware Company) vendor has been created.
• On the Projects (PM301000) form, the HOTEL project has been created.
• On the Non-Stock Items (IN202000) form, the SUBCONTR non-stock item, which represents the work
performed by subcontractors, has been created.

Process Overview
To record the work performed by a subcontractor for the project, you will create a subcontract document with the
subcontractor (vendor) specified on the Subcontracts (SC301000) form. Then you will print the subcontract. Aer
that, you will create a bill for the provided services on the Bills and Adjustments (AP301000) form, create a check for
the bill on the Checks and Payments (AP302000) form, and process this check.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a construction project manager by using the ewatson username and the 123
password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 3/15/2023. If a different date is displayed, click the Business Date menu
button, and select 3/15/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Creating a Subcontract

To create a subcontract, do the following:
1. On the Subcontracts (SC301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Vendor: HARDCO (Standard Hardware Company)
• Date: 3/15/2023
• Start Date: 3/15/2023
• Description: Installation of windows, doors, and building of an entrance
3. On the Details tab, add lines with the following settings.

Inventory ID Project Project Task Cost Code Line De- UOM Ext. Cost
scription

SUBCONTR HOTEL 08 08-510 Windows EA 650000

SUBCONTR HOTEL 08 08-200 Doors EA 442000

and
frames
 Part 2: Subcontracts and Accounts Payable | 29

Inventory ID Project Project Task Cost Code Line De- UOM Ext. Cost
scription

SUBCONTR HOTEL 08 08-800 Entrance EA 2000000

4. In the Summary area, in the Subcontract Total box, make sure that the total is 3,092,000.
5. On the Other tab, clear the Do Not Print check box.
6. On the form toolbar, click Remove Hold to assign the subcontract the Pending Printing status.
7. Open the Projects (PM301000) form, and in the Project ID box, select HOTEL.
8. On the Cost Budget tab, make sure that the cost budget lines has been updated with the subcontract line
amounts with the same project task and cost code, as shown in the following screenshot.

Figure: Cost budget updated with the subcontract amount

Step 2: Printing the Subcontract

To prepare the printable version of the subcontract, do the following:
1. On the Subcontracts (SC301000) form, open the subcontract that you have created earlier in this activity, and
click Print on the form toolbar. The system opens the printable version of the subcontract document on the
Subcontract (SF) (SC641000) report form in a new browser tab.
2. Review the printable version of the document, and close the browser tab with the printable subcontract to
return to the subcontract on the Subcontracts form.

For the purposes of this activity, you do not need to actually print the document. In a
production setting, you would click Print on the form toolbar to print the subcontract before
closing the browser tab.

3. Press Esc to refresh the form. Notice that the system has changed the subcontract status to Open.

Step 3: Paying for the Performed Work

To create the bill to pay for the subcontractor work, do the following:
 Part 2: Subcontracts and Accounts Payable | 30

1. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, set the business date
to 3/25/2023.
2. While you are still on the Subcontracts (SC301000) form, click Enter AP Bill on the form toolbar. The Bills and
Adjustments (AP301000) form opens with the prepared accounts payable bill.
3. On the form toolbar, click Remove Hold to assign the bill the Balanced status, and then click Release to
release the bill.
4. On the form toolbar, click Pay. The system prepares a check and opens it on the Checks and Payments
(AP302000) form.
5. On the form toolbar, click Remove Hold to assign the check the Pending Print status, and then click Print/
Process.
6. On the Process Payments / Print Checks (AP505000) form, which opens, click Process on the form toolbar to
process the only selected line, which corresponds to the prepared check. The system opens the printable
document for the check in a separate browser tab.
7. Review the printable version of the document, and close the browser tab with the printable check to return
to the Release Payments (AP505200) form that the system has opened.

For the purposes of this activity, you do not need to actually print the document. In a
production setting, you would click Print on the form toolbar to print the check before closing
the browser tab.

8. On the Release Payments form, make sure that the unlabeled check box is selected for the only line in the
table, and on the form toolbar, click Process to release the AP check. The system releases the payment and
the payment application to the bill.
9. In the Processing dialog box, which opens, click Close.
10.On the Subcontracts form, again open the subcontract that you have created earlier in this activity, which is
now assigned the Closed status. On the Billing tab, review the line that corresponds to the bill that you have
prepared for the subcontract. The bill is also assigned the Closed status because it was paid in full.

Figure: Closed subcontract

You have finished processing the subcontract document.

Lesson 4: Correcting Bills for Subcontracts

 Part 2: Subcontracts and Accounts Payable | 31

Correction of a Bill for a Subcontract: General Information

In most cases, a subcontract is considered completed when the services have been provided and the corresponding
accounts payable bill has been released to adjust the outstanding balance of the vendor (subcontractor). If the
subcontract requires any changes, you may want to correct billed amounts and quantities in the subcontract fully
or partially. Because a released accounts payable bill cannot be edited or deleted, to correct the billed amount and
billed quantity, you need to process a debit adjustment that decreases the accounts payable balance.

Learning Objectives
From reading the topics in this chapter and completing the process activity, you will learn how to do the following:
• Create a debit adjustment for an AP bill prepared for a subcontract
• Release the debit adjustment
• Review how the processed debit adjustment affects the vendor balance
• Review the GL and project transactions generated on release of a debit adjustment
• Review how the project budget is updated on release of the debit adjustment

Applicable Scenarios
You create a debit adjustment for a bill prepared for a subcontract to decrease the amount you owe to a vendor
according to this subcontract.

Debit Adjustment Processing

To partially decrease the billed amount or billed quantity for a subcontract, you manually create a debit
adjustment and specify the needed amount and quantity in the lines that are linked to the corresponding
subcontract.
You enter a debit adjustment on the Bills and Adjustments (AP301000) form. In the Summary area of a debit
adjustment, you specify such settings as the vendor, the vendor location, and the currency used for the transaction.
Then you add the subcontract lines for which you need to decrease the billed amount or billed quantity (or both)
by clicking the Add Subcontract or Add Subcontract Line button on the table toolbar of the Details tab of the Bills
and Adjustments form. In the dialog box that opens, you select the particular subcontract or subcontract lines with a
nonzero billed amount or quantity to be added to the debit adjustment.
In each subcontract line that you add to the debit adjustment by using the Add Subcontract or Add Subcontract
Line dialog box, the system populates the column settings as follows:
• The project budget key (Project, Project Task, Account Group, Inventory ID, and Cost Code, if applicable)
is copied from the corresponding subcontract line. The specified project and project task cannot be
changed in the debit adjustment line linked to a subcontract line.

If the non-project code is specified in a debit adjustment line linked to a subcontract, you can
change the non-project code to some particular project and specify a project task in this line.

• The account, subaccount, and tax category are copied from the corresponding subcontract line; you can
change these settings, if needed.
• The extended cost of the line (Ext. Cost) is copied from the Billed Amount of the subcontract line. You could
leave it as is to adjust the full billed amount, or change to adjust the billed amount partially.
 Part 2: Subcontracts and Accounts Payable | 32

To decrease the full amount of a bill created for a subcontract, you can reverse the bill. When
you reverse the bill, the system automatically creates a debit adjustment with the same
details.

• The unit cost and quantity are set to zero; you can correct these values, if needed.

The quantity in a debit adjustment line cannot exceed the billed quantity in the corresponding
subcontract line.

• The line discount (Discount Percent and Discount Amount) is set to zero.
• The retainage percent and retainage amount are set to zero.
• The reference number of the corresponding subcontract is shown in the Subcontract Nbr. column.
Aer you have specified the details of the debit adjustment, you remove it from hold by clicking Remove Hold
on the form toolbar, and release by clicking Release on the form toolbar. On release of the debit adjustment, a
batch of GL transactions is generated to update the account balances in the general ledger; on release of this batch,
the system generates the corresponding project transaction to update the values of the project budget. Also, the
system automatically updates the billed amount and billed quantity in the lines of the subcontract for which the
debit adjustment has been prepared.
If a subcontract line had the Closed and Completed check boxes selected at the time of its addition to the debit
adjustment, on release of this debit adjustment, the system clears the check boxes in the subcontract line. The
clearing of both check boxes indicates that the line is not billed in full now.
The released debit adjustment appears on the Checks and Payments (AP302000) form and can be applied to any
bills and credit adjustments of the same vendor. For more information on applying debit adjustments, see Debit
and Credit Adjustments: General Information.

Along with correcting billed amounts and quantities, you may need to process a change order for
a subcontract to decrease its total amount and quantity. For more information on this, see Change
Orders for Commitments: General Information.

Workflow of the Processing of a Debit Adjustment for a Subcontract

The following diagram represents the general workflow of the processing of a debit adjustment for a subcontract.
 Part 2: Subcontracts and Accounts Payable | 33

Correction of a Bill for a Subcontract: Process Activity

This activity will walk you through the process of correcting an AP bill for a subcontract.

Story
Suppose that on March 1, 2023, the ToadGreen company hired a subcontractor, Harmon Installation, to build an
entrance in the hotel that ToadGreen is building. According to the terms of the subcontract, $10,000 will be paid to
the subcontractor for this work, and 10% of each payment will be withheld by the company until the related work is
finished.
On March 25, 2023, ToadGreen received the first bill for the completed work from the subcontractor. A ToadGreen
project accountant entered and released a bill in the amount of $7,000, which includes the $700 retainage amount.
Then suppose that the project accountant realized that the bill was entered incorrectly, and the billed amount must
be $6,000 for the subcontract. Acting as this project accountant, you will correct the billed amount and quantity in
the subcontract by processing the debit adjustment.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
 Part 2: Subcontracts and Accounts Payable | 34

• On the Enable/Disable Features (CS100000), the Construction and Retainage Support features have been
enabled.
• On the Vendors (AP303000) form, the HARMINT (Harmon Installation) vendor has been defined. On the
Financial tab, the Apply Retainage check box is selected for this vendor.
• On the Non-Stock Items (IN202000) form, the LABOR non-stock item has been created.
• On the Projects (PM301000) form, the HOTEL project has been created with multiple project tasks.
• On the Subcontracts (SC301000) form, the subcontract for the HARMINT vendor in the amount of $10,000.00
has been entered.
• On the Bills and Adjustments (AP301000) form, the partial bill in the amount of $7,000.00 has been entered
and released; the retainage amount $700 is calculated for the bill (which is shown in the Original Retainage
box on the Retainage tab).

Process Overview
On the Bills and Adjustments (AP301000) form, you will create a debit adjustment and add the line of the
subcontract to this adjustment. Then you will specify the correction amount and release the adjustment. Finally,
you will review the billed amount and quantity in the subcontract to make sure that they have been updated.

System Preparation
To prepare to perform the instructions of the activity, in the info area, in the upper-right corner of the top pane of
the Acumatica ERP screen, click the Business Date menu button, and select 3/25/2023 on the calendar.

Step 1: Creating a Debit Adjustment

You will first create the debit adjustment that will correct the AP bill for the subcontract. Do the following:
1. On the Bills and Adjustments (AP301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Debit Adj.
• Vendor: HARMINT
• Date: 3/25/2023
• Description: Adjusting overbilled contractor
3. On the form toolbar, click Save.

Step 2: Adding the Subcontract Line to the Document

To add a line of the subcontract to be corrected, while you are still reviewing the debit adjustment on the Bills and
Adjustments (AP301000) form, do the following:

1. On the table toolbar of the Details tab, click Add Subcontract. The Add Subcontract dialog box opens.
2. In the dialog box, find the line dated 3/1/2023 with the HOTEL project and $10,000 subcontract total. Notice
that the Total Billed Amount for the subcontract is $7,000.
3. Select the unlabeled check box in the line, and click Add & Close. The system adds the subcontract line to
the debit adjustment and closes the dialog box.
4. In the line added to the document, change the Quantity to 8 and the Unit Cost to 125. The Ext. Cost in the
line is $1,000 (which is the amount by which the billed amount will be adjusted). In the Subcontract Nbr.
column of the line, notice that the system has inserted the reference number of the subcontract for which
the adjustment is being created.
 Part 2: Subcontracts and Accounts Payable | 35

The retainage amount in the line is equal to zero, because the processed debit adjustment
does not change the retained amounts.

5. On the form toolbar, click Save.

Step 3: Releasing the Debit Adjustment and Reviewing the Result

To release the debit adjustment and see how this affects the subcontract, do the following:
1. On the form toolbar, click Remove Hold. The system assigns the debit adjustment the Balanced status.
2. On the form toolbar, click Release to release the debit adjustment.
3. On the Subcontracts (SC301000) form, open the subcontract for the HARMINT vendor, for which you have
processed the debit adjustment.
4. On the Details tab, review the billed amount and quantity in the subcontract line, and make sure they have
been adjusted for the subcontract, as shown in the following screenshot.

Figure: The adjusted amount and quantity in the subcontract line

You have corrected the bill for the subcontract. You can now apply the debit adjustment to the AP bill to finish the
correction process.

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

 Part 2: Subcontracts and Accounts Payable | 36

Account Project and Project Task Debit Amount Credit Amount

Expense account Project and project task 0.00 Correction amount

in the subcontract line

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 Account Group Cost Code (if Inventory ID Debit Account Amount
Task applicable)

Project and project Account group Cost code in Non-stock item Expense ac- –(Amount)
task in the subcon- mapped to Ex- the subcon- in the subcon- count in the GL
tract line pense account tract line tract line transaction

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.

Lesson 5: Processing Negative Commitments

Change Orders for Commitments: General Information

By using the change order functionality in Acumatica ERP, you can manage changes to a project's committed
values if the commitment functionality has been configured for project accounting. For more information on
commitments, see Committed Costs: General Information.
 Part 2: Subcontracts and Accounts Payable | 37

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure a change order class for tracking commitments
• Update cost commitments with the change order
• Review the changes made with change orders in the project budget
• Make changes to closed commitments

Applicable Scenarios
You turn on the change order workflow for a project and enable commitment tracking if you want to distinguish
purchases within the cost budget of a project, control changes made to the committed values of the project budget,
and track these changes at the budget level. To make changes to the project budget, you create change orders that
do not alter the original committed values.

Configuration of a Change Order Class

If the Internal Cost Commitment Tracking check box is selected on the General tab (General Settings section)
of the Projects Preferences (PM101000) form, the system exposes commitments on the Commitments (PM306000)
form. To allow users to make changes to commitments, you configure a change order class on the Change Order
Classes (PM203000) form. On the Details tab of this form, you select the Commitments check box to allow changes
to committed values.
You can grant access rights to particular change order classes for particular users. For example, you can
configure access rights so that an employee responsible for purchases can use only a change order class with the
Commitments check box selected on the Details tab of the Change Order Classes form. This class of change orders
will have only the Commitments tab on the Change Orders (PM308000) form, and the employee will not be able to
adjust the revenue or cost budget of a project by using change orders.

Change Orders for Project Commitments

You can track changes to project commitments that have been created based on subcontracts or purchase orders
of the Normal and Project Drop-Ship type processed for a project.

Subcontracts are available in the system if the Construction feature is enabled on the Enable/Disable
Features (CS100000) form. For more information about processing subcontracts, see Subcontracts:
General Information.

On the Change Orders (PM308000) form, in a change order with the On Hold status, you can process the following
changes to a project's committed values:
• Creating a new purchase order for a project
• Adding a new line to an existing purchase order
• Adjusting an existing purchase order by adding a new negative line
• Making an addition to or deduction from an existing purchase order with a positive or negative amount

The amount of a negative change order line may not exceed the Line Total amount of the
purchase order.

• Making an addition to or deduction from an existing purchase order line with a positive or negative amount
 Part 2: Subcontracts and Accounts Payable | 38

The quantity and amount of a negative change order line may not exceed the received or billed
quantities and amounts of the purchase order.

• Reopen a purchase order or subcontract

When you release the change order, based on the Quantity and Amount of a commitment line on the
Commitments tab of the Change Orders form, the system updates the related purchase order or creates a new
one, depending on the type of the commitment line, and updates the Committed CO Quantity and Committed CO
Amount of the corresponding cost budget line of the project on the Projects (PM301000) form.
For information on how to make changes to closed commitments, see Change Orders for Commitments:
Commitment Reopening.

Workflow of Managing Changes to Commitments

The following diagram illustrates the workflow of managing changes to commitments.

Update of a Purchase Order when a Change Order Is Released

When a change order is released, the system updates or creates purchase order or orders on the Purchase Orders
(PO301000) form based on the commitment lines of the change order—that is, the lines on the Commitments tab
of the Change Orders (PM308000) form—as follows:
• If a commitment line of the change order has the Update, the system updates the following columns of the
corresponding purchase order line on the Details tab of the Purchase Orders form, with the column values
computed as noted:
• Order Qty.: The original Order Qty. of the purchase order line, plus (or minus) Quantity of the
corresponding commitment line of the change order.
• Ext. Cost: The original Ext. Cost of the purchase order line, plus (or minus) Amount of the corresponding
commitment line of the change order.
 Part 2: Subcontracts and Accounts Payable | 39

• 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 purchase order line, the Order Qty. of lines with stock items cannot be equal to zero. If a change
order line with the negative amount is applied to a purchase order line with the stock item so that the
resulting quantity must be zero, the system does not change the Order Qty., sets the Unbilled Qty. to
zero, and selects the Canceled check box in the line to indicate that this line was canceled.
• If a commitment line of the change order has the New Line status, the system adds a new line with the
following column values to the Details tab of the Purchase Orders form of the corresponding purchase
order:
• Order Qty.: Quantity of the corresponding commitment line of the change order
• Ext. Cost: Amount of the corresponding commitment line of the change order
• Requested: Order Date of the corresponding commitment line of the change order
• If any commitment lines of the change order have the New Document status, the system groups these lines
by vendor and creates a new purchase order on the Purchase Orders form for each vendor with key settings
determined as follows:
• The date of the created purchase order 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 is Change Order #CONumber, where CONumber is
the reference number of the change order.

Update of the Project Budget when a Change Order Is Released

For each purchase order line on the Purchase Orders (PO301000) form updated by a change order, the system
updates the corresponding project commitment. For each purchase order line 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 an updated or newly created
purchase order line, 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. The Original Committed Quantity and Original
Committed Amount of the updated cost budget line remain the same, whereas other columns on the Cost Budget
tab of the Projects form are updated with the column values computed as noted:
• Revised Committed Quantity: Order Qty. of the purchase order line
• Revised Committed Amount: Ext. Cost of the purchase order line
• Committed CO Quantity: Revised Committed Quantity minus Original Committed Quantity
• Committed CO Amount: Revised Committed Amount minus Original Committed Amount
• Committed Open Amount: Open Amount of the purchase order line

Change Orders for Commitments: To Create a Change Order Class

This activity will walk you through the process of configuring a change order class.

Story
Suppose that you, as the system administrator of the SweetLife Fruits & Jams company, need to configure a change
order class to be used by a purchase manager for creating change orders for project commitments. The change
order class must prevent users from changing the revenue and cost budgets of a project.
 Part 2: Subcontracts and Accounts Payable | 40

Configuration Overview
For the purposes of this activity, the following features have been enabled on the Enable/Disable Features
(CS100000) form:
• Project Accounting, which provides support for the project accounting functionality
• Construction, which provides support for the construction functionality
• Change Orders, which gives you the ability to track changes to projects with change orders

Process Overview
You will configure a change order class on the Change Order Classes (PM203000) form.

System Preparation
To prepare to perform the instructions of this activity, sign in to the system as a system administrator by using the
gibbs username and the 123 password.

Step: Configuring a Change Order Class

To configure a change order class that will be used for creating change orders for project commitments, perform
the following instructions:
1. On the Change Order Classes (PM203000) form, create a new record.
2. In the Summary area, enter the following settings:
• Class ID: COMMITMENT
• Description: Change orders to commitments
Notice that the Active check box is selected by default.
3. On the Details tab, clear the Cost Budget and Revenue Budget check boxes, and leave the Commitments
check box selected. With these settings, for the change orders with this class selected, users can make
changes to only commitments without the cost and revenue budgets being affected.
4. Save the change order class you have created.

You have defined a change order class that can be used for creating change orders that affect project
commitments.

Subcontracts: To Update a Negative Line in a Subcontract

In this activity, you will learn how you can update a negative line in a subcontract with a change order.

Story
Suppose that on 3/22/2023, the ToadGreen company hires a subcontractor, Standard Hardware Company, to
perform a part of work for the hotel that is being built by ToadGreen. According to contract, Standard Hardware
Company will install the watering system for the hotel and the price of performed work will be $450,000. The
subcontractor agrees to provide the discount for the subcontract in the amount of $1,500.
Later, because of minor scheduling issues, Standard Hardware Company has agreed to increase the discount
amount to $1,600. Acting as the construction project manager, you will process all the needed documents in the
system.
 Part 2: Subcontracts and Accounts Payable | 41

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction, Cost Codes, and Change Orders features
have been enabled.
• On the Vendors (AP303000) form, the HARDCO (Standard Hardware Company) vendor has been created.
• On the Projects (PM301000) form, the HOTEL project has been created. On the Summary tab, the Change
Order Workflow check box is selected.
• On the Stock Items (IN202500) form, the SUBCONTR non-stock item, which represents the work performed
by subcontractors, has been created.

Process Overview
To record the work performed by a subcontractor for the project, you will create a subcontract document on
the Subcontracts (SC301000) form. Then on the Change Orders (PM308000) form, you will create and process a
change order with the negative line for this subcontract. On the Commitments (PM306000) form, you will review the
resulting commitments that the system has created based on the subcontract.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a construction project manager using the ewatson username and 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 3/22/2023. If a different date is displayed, click the Business Date menu
button, and select 3/22/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Entering a Subcontract

To create a subcontract, do the following:
1. On the Subcontracts (SC301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Vendor: HARDCO (Standard Hardware Company)
• Date: 3/22/2023
• Start Date: 3/22/2023
• Description: Watering system installation for HOTEL
3. On the Details tab, add lines with the following settings.

Inventory ID Project Project Task Cost Code Line De- UOM Ext. Cost
scription

SUBCONTR HOTEL 02 02-510 Watering EA 450,000

system
 Part 2: Subcontracts and Accounts Payable | 42

Inventory ID Project Project Task Cost Code Line De- UOM Ext. Cost
scription

SUBCONTR HOTEL 02 02-510 Discount EA -1500

on in-
stalla-
tion

4. In the Summary area, in the Subcontract Total box, make sure that the total is 448,500.00.
5. On the form toolbar, click Remove Hold to assign the subcontract the Open status. The system creates
commitments to the project based on the subcontract lines.
6. On the Projects (PM301000) form, open the HOTEL project and review the cost budget of the project. On the
Cost Budget tab, make sure the budget line with the 02-510 cost code has appeared in the cost budget, and
notice that the committed open amount for the lines equals the amount of the subcontract that you have
processed ($448,500). The original committed values of the line equals the revised committed values.

Step 2: Processing Changes to the Subcontract

To change the project commitments by processing a change order to subcontract, while you are still viewing the
Projects (PM301000) form, do the following:

1. On the More menu (under Change Management), click Create Change Order. The system creates a change
order and opens it on the Change Orders (PM308000) form.
2. In the Summary area, specify the following settings:
• Class: COMMITMENT
• Description: Increasing the discount amount
3. On the table toolbar of the Commitments tab, click Select Commitments.
4. In the Select Commitments dialog box, which opens, select the unlabeled check box in the commitment
line with the 02 project task, 02-510 cost code, SUBCONTR inventory item, and -1500 line amount, and click
Add Lines & Close.
The system adds the selected purchase order line to the change order and closes the dialog box. Notice that
the status of the added line is Update.
5. In the added line, enter -100 in the Amount box.
The system calculates the Potentially Revised Amount value in the line, which is equal to -1600, as the sum
of the Ext. Cost and Amount values. This is the revised amount of the subcontract line aer processing the
change order will be finished.
6. Save your changes to the change order.
The Commitment Change Total in the Summary area must be equal to -$100, as shown in the following
screenshot.
 Part 2: Subcontracts and Accounts Payable | 43

Figure: Changes to project commitments

7. On the form toolbar, click Remove Hold to assign the change order the Open status, and then click Release
to release the change order.
8. On the Subcontracts (SC301000) form, open the subcontract that you have created earlier in this activity, and
on the Details tab, review the subcontract lines. Notice that the Ext. Cost of the line with the Discount on
installation description is now -1,600. In the Summary area, notice that the total amount of subcontract has
been adjusted and is now $448,400.00.
9. Open the Commitments (PM306000) form.
10.In the Summary area, select HOTEL in the Project box and 02-510 in the Cost Code box. Make sure other
boxes are cleared, and on the Cost Commitments tab, review commitments that the system has created
when you saved the subcontract with the Open status. There are two commitments:
• The commitment with the SUBCONTR item and committed original and revised amounts of $450,000
• The commitment with the SUBCONTR item and committed original amount of -1,500 and revised
committed amount of -1,600
You have finished processing a negative commitment for the project.

Lesson 6: Processing AP Bills with Retainage

AP Bills with Retainage: General Information

If your company retains a part of the amount of an AP bill, to process the total amount of the bill, at least two bills
are created in Acumatica ERP: the bill for which part of the amount is retained and the retainage bill that contains
the retained amount to be paid.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create and process a bill with retainage held at the line level
• Release retainage for the bill
• Enter a payment for the retainage bill
• Pay the outstanding balance of the original bill
 Part 2: Subcontracts and Accounts Payable | 44

Applicable Scenarios
You create a bill with retainage when it is necessary to withhold a portion of the contract amount until the work has
been completed to assure that the vendor will satisfy its obligations and complete a particular project or project
task.

Retainage is not supported for AP documents created in a foreign currency.

The Processing Workflow of a Bill with Retainage

Typically, an AP bill with retainage goes through the following states during its life cycle:
1. Entering the bill with retainage and preparing the bill for release: A data entry person creates the bill with
retainage in the system on the Bills and Adjustments (AP301000) form. The balance of this bill equals the
sum of the extended costs minus the line discounts of the lines of the bill with this subtotal reduced by the
retainage amount. The total amount of the bill (which is shown on the Retainage tab) is the detail total
amount plus the retained amount.
2. Releasing the bill with retainage: An accountant releases the prepared bill with retainage. This released bill
is assigned the Open status, and it affects the balances of the selected vendor and the GL accounts.
3. Paying the bill with retainage: The accountant creates a payment in the system to pay the bill with retainage,
and then processes and releases the payment. The system reduces the balance of the bill with retainage by
the amount paid. When the payment is released, the balance of the vendor is reduced by the paid amount,
and the GL accounts are updated. The bill with retainage still has the Open status.
4. Releasing a retainage: Once the work has been completed, the accountant releases the retainage for the
original bill. The user can release a part of the retained amount or the full retained amount. When the
retainage is released, a retainage bill with the Open status is created in the system.
When the retainage bill is released, the system updates the balances of the vendor, the related GL accounts,
and the unreleased retainage amount of the bill with retainage.
5. Paying the retainage bill: The accountant creates a payment in the system to pay the retainage bill. The user
processes and releases the payment. The system reduces the balance of the retainage bill by the amount
paid. The balance of the vendor is reduced by the paid amount, and the GL accounts are updated.
If the full retained amount has been released and paid, the bill with retainage is assigned the Closed status,
and its unreleased and unpaid retainage amounts equal zero.
If a part of the retained amount has been released and paid, the bill with retainage keeps the Open status.
The system reduces the bill’s unreleased and unpaid retainage amounts by the retainage released and the
retainage paid, respectively.

For documents with retainage, the invoice rounding functionality, which is available when the Invoice
Rounding feature is enabled on the Enable/Disable Features (CS100000) form, is not supported; that is,
amounts in documents with retainage cannot be rounded.

Open AP balances and unreleased retainage (retainage held) balances can be tracked at the AP bill summary
level or at the line level. Whether the document balances are at the summary level or the line level, the setting
is determined for each document individually. By default, a new document inherits the setting specified for the
vendor in the Pay by Line check box on the Payment tab of the Vendors (AP303000) form. If balances are tracked at
the line level, payments are also applied to these AP bills at the line level.
 Part 2: Subcontracts and Accounts Payable | 45

AP Bills with Retainage: Process Activity

This activity will walk you through the processing of an AP bill with retainage. This activity demonstrates the
workflow with AP bills with open AP and retainage balances at the line level.

Story
Suppose that on March 15, 2023, the ToadGreen Building Group company hired a subcontractor to install air
conditioning systems for the hotel being built. By the subcontract, $2,400,000 will be paid to the subcontractor for
work and 10% of each payment will be withheld by the company until the related work is finished. Also, ToadGreen
and the subcontractor have agreed that aer 30% of the work is done, ToadGreen has to release 10% of the
retained amount.
On March 25, 2023, ToadGreen receives the first bill for the completed work, which is 30% of the total work, in the
amount of $720,000. A ToadGreen project accountant needs to enter a bill that includes the $72,000 retainage
amount and then process a payment for the full bill amount. Aer the subcontractor reports about finishing a part
of the work, the ToadGreen project accountant needs to release $7,200, which is a part of the retainage amount.
Acting as this project accountant, you will enter and process the related financial documents.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The following features have been enabled on the Enable/Disable Features (CS100000) form:
• Retainage Support
• Payment Application by Line
• Construction
• On the Vendors (AP303000) form, the PARKERS vendor has been created; the Pay by Line (Payment tab) and
Apply Retainage (Financial tab) check boxes are selected for this vendor. In the Retainage Percent box
(Financial tab), 10 is specified. On the GL Accounts tab, 28000 - AP Retainage is specified in the Retainage
Payable Account box. In the Cash Account box on the Payments tab, the 10200TG cash account is specified
for the vendor.
• On the Non-Stock Items (IN202000) form, the HVAC non-stock item has been created.
• On the Projects (PM301000) form, the HOTEL project has been created with multiple project tasks.
• On the Subcontracts (SC301000) form, the subcontract for the PARKERS vendor in the amount of $2,400,000
has been entered.

Process Overview
You will create a partial bill for the subcontract on the Bills and Adjustments (AP301000) form. On the Prepare
Payments (AP503000) form, you then will prepare a partial payment for the bill and process it by using the Process
Payments / Print Checks (AP505000) and Release Payments (AP505200) forms. You will then review the retainage
details of the processed AP bill in the AP Aging (AP631000) report. Aer that, you will release the retainage on the
Release AP Retainage (AP510000) form and prepare the retainage document. Finally, you will process the retainage
document and pay its balance.

System Preparation
To prepare to perform the instructions of this activity, in the info area, in the upper-right corner of the top pane of
the Acumatica ERP screen, make sure that the business date in your system is set to 3/25/2023. If a different date is
 Part 2: Subcontracts and Accounts Payable | 46

displayed, click the Business Date menu button, and select 3/25/2023 on the calendar. For simplicity, in this activity,
you will create and process all documents in the system on this business date.

Step 1: Create an AP Bill with Retainage for a Subcontract

To create and pay an AP bill for the vendor, do the following:
1. On the Bills and Adjustments (AP301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Vendor: PARKERS
• Date: 3/25/2023
• Description: 30% of work for the subcontract
• Apply Retainage: Selected
• Pay by Line: Selected
3. On the table toolbar of the Details tab, click Add Subcontract.
4. In the Add Subcontract dialog box, which opens, select the unlabeled check box in the row with the
subcontract to PARKERS and the $2,400,000 subcontract total, and click Add & Close. The system adds four
subcontract lines to the bill.
5. Modify the lines as follows to indicate that the bill is being prepared for 30% of the subcontract work:
a. Leave the first line, with the HVAC subcontract - Phase 1 description, as it is, and make sure the Ext. Cost
amount is 480,000.
b. In the second line, with the HVAC subcontract - Phase 2 description, change the Ext. Cost amount to
240000.
c. Remove the third and fourth lines from the bill by clicking each line and then clicking Delete Row on the
table toolbar.
Make sure that the total bill amount is now 648,000, which is the original amount (720,000) minus the
retained amount (72,000).
6. Save your changes.
7. On the form toolbar, click Remove Hold to assign the bill the Balanced status, and then click Release to
release the bill. For each line on the Details tab, notice that the Balance column now shows the amount to
be paid for each line (which is the line amount minus the retainage amount).

Step 2: Paying the Bill

To pay the bill, do the following:
1. Open the Prepare Payments (AP503000) form and specify the following settings in the Selection area:
• Payment Method: CHECK
• Cash Account: 10200TG
• Vendor: PARKERS
• Pay Date Within: Cleared
The lines of the bill that you have created earlier in this activity appear in the table.
2. Select the unlabeled check box for both lines, and make sure that in the Selection area, the Selection Total
amount is $648,000.00, and the Available Balance amount is greater than the total amount to be paid.
3. Click Process on the form toolbar.
4. On the Process Payments / Print Checks (AP505000) form, which opens, click Process to process the only
selected line, which corresponds to the prepared check. The system opens the printable document for the
check in a separate browser tab.
 Part 2: Subcontracts and Accounts Payable | 47

5. Close the tab with the printed check, and navigate to the Release Payments (AP505200) form, which the
system has opened.
6. On the form toolbar, click Process to release the AP check. In the Processing dialog box, which opens, click
Close.
7. On the Bills and Adjustments (AP301000) form, open the AP bill for which you have processed the payment,
and review the line-level balances. Both lines have an unreleased retainage balance in the Unreleased
Retainage box, as shown in the following screenshot. Therefore, the bill retains the Open status though
both bill lines have been paid.

Figure: Open bill with partial payment and unreleased retainage

On the Applications tab, review the lines of the payment that you have processed. The amounts in the
Amount Paid column of each line show how much has been paid for each line of the AP bill.

Step 3: Reviewing Retainage Details

To review the retainage details of the processed AP bill, do the following:
1. Open the AP Aging (AP631000) report form.
2. On the Report Parameters tab, specify the following settings:
• Report Format: Detailed with Retainage
• Company/Branch: TBGROUP (inserted automatically)
• Vendor: PARKERS
• Age as of Date: 3/25/2023
3. On the form toolbar, click Run Report. In the displayed report, the retainage amount held for the AP bill
(72,000.00) is not aged, and is shown in the Unreleased Retainage column.

Step 4: Releasing a Part of the Retainage

To partially release the retainage, do the following:
1. Open the Release AP Retainage (AP510000) form.
2. In the Selection area, specify the following settings to review the lines of AP documents that have nonzero
unreleased retainage balances:
• Vendor: PARKERS
• Show Lines with Open Balance: Selected
3. In the Retainage to Release column of the table, for the lines that are displayed, specify the following
amounts:
 Part 2: Subcontracts and Accounts Payable | 48

• Line 1: 4800
• Line 2: 2400
4. In the table, select the unlabeled check box for both lines.
5. Click Process on the form toolbar to prepare the retainage document. In the Processing dialog box, which
opens, click Close.
6. On the Bills and Adjustments (AP301000) form, open the prepared retainage document for the PARKERS
vendor.
Each line of the retainage bill has the project, project task, and cost code copied from the original AP bill.
Because the original AP bill was created with the Pay by Line check box selected, the retainage AP bill is
also processed at the line level (that is, the Pay by Line check box is selected in the Summary area).
7. Make sure the Balance in the Selection area is $7,200, and on the form toolbar, click Remove Hold to assign
the document the Balanced status. Then click Release to release the document. The retainage document is
assigned the Open status.

Step 5: Paying the Retainage Document

To pay the retainage document, do the following:
1. While you are still on the Bills and Adjustments (AP301000) form with the retainage document open, on the
form toolbar, click Pay.
The system opens the Checks and Payments (AP302000) form with the prepared AP check.
2. In the Summary area, make sure that the Payment Amount is 7,200.00, and on the form toolbar, click
Remove Hold to assign the check the Pending Print status.
3. On the form toolbar, click Print/Process.
4. On the Process Payments / Print Checks (AP505000) form, which opens, click Process to process the only
selected line, which corresponds to the prepared check. The system opens the printable version of the
check in the separate browser tab.
5. Close the tab with the printed check, and navigate to the Release Payments (AP505200) form, which the
system has opened.
6. On the Release Payments form, click Process to process the selected line. In the Processing dialog box,
which opens, click Close.
7. On the Bills and Adjustments form, open the original bill (which still has the Open status) and review the line
amounts in the lines of the bill, focusing on the following columns:
• Ext. Cost is the original amount that includes retainage ($480,000 and $240,000).
• Retainage Amount is the original retainage amount of the lines ($48,000 and $24,000).
• Amount is the original amount of the line less retainage ($432,000 and $216,000). This amount becomes
the open AP balance of the line on release of the bill.
• Balance is the current open AP balance of the line, which is the Amount minus the total amount of
payments applied to the line ($0 in both lines).
• Unreleased Retainage is the retainage currently held for the line ($43,200 and $21,600).
You have prepared a partial payment for the subcontract and released a part of the retainage amount.

Lesson 7: Preparing Payments for Projects

 Part 2: Subcontracts and Accounts Payable | 49

Vendor Payments for a Project: General Information

To pay for services provided by a vendor for a particular project in Acumatica ERP, you need to create an AP check,
which is a document that represents the payment in the system, and apply it to the corresponding AP bill or bills.

Learning Objectives
In this chapter, you will learn how to do the following:
• Select the bills or bill lines to be paid
• Prepare and release a payment for multiple bills for the same project

Applicable Scenarios
You may need to prepare and process a vendor payment for a project in Acumatica ERP when the vendor’s bill is
due or multiple bills of this vendor related to the project are due on the same date. Also, when you prepare the
payment, you may need to do one the following:
• Pay multiple bills for a project with a single payment document
• Pay particular lines of multiple bills with a single payment document
• Pay multiple bills at the same time and prepare separate payment documents for some of these bills and a
consolidated payment document for the rest of the bills

Payment for Bills Related to a Project

To speed the process of preparing and processing payments for a project, you initiate the payment process on the
Prepare Payments (AP503000) form. In the Selection area of the Prepare Payments form, you select the project for
which you want to list bills for possible payment generation. You can also filter the listed bills by payment date,
cash account, payment method, vendor, and discount availability. Then in the table on the Documents to Pay tab,
you select the bills to be paid (the system inserts the full balance in the Amount Paid column, but you can instead
specify a partial one to be paid), and click Process on the form toolbar to generate the checks for the selected bills.

If you need to process a payment for one bill, you can manually create a payment on the Checks
and Payments (AP302000) form and process this payment to completion. For more information on
creating a payment for a particular bill, see AP Bill Payments: General Information.

The system generates an AP check (or multiple checks grouped by the vendor) for the selected bills. If the payment
method specified in any of the processed AP checks requires a check to be printed, the system opens the Process
Payments / Print Checks (AP505000) form with these checks listed; on this form, you select the checks to be printed
and click Process on the form toolbar. Then on the Release Payments (AP505200) form, you mass-release the AP
checks. The system releases the AP checks, applies the payment amount to the corresponding bill or bills, and
decreases the open balance of these bills. Once the check is applied in full, it is assigned the Closed status.

Workflow of the Process of Paying Bills for a Project

The following diagram illustrates the workflow of processing payments for vendors’ bills related to a project.
 Part 2: Subcontracts and Accounts Payable | 50

Payment for Separate Bill Lines for a Project

If your company needs to manage expenses and payments at a granular level, you can configure payment by
document lines. If the Payment Application by Line feature is enabled on the Enable/Disable Features (CS100000)
form, you select the Pay by Line check box in the Summary area of the Bills and Adjustments (AP301000) form to
indicate that individual lines of the bill can be paid. For more information, see Applying Payments to Particular Lines
of AP Documents.

You can use the Prepare Payments (AP503000) form to process bill lines just as you use it to process bills. You can
prepare and process payments that include both bills and individual bill lines. You start by specifying selection
criteria, which can include the vendor and the project, for the bills and bill lines to be listed. For bills and retainage
documents for which the Pay by Line check box was cleared on the Bills and Adjustments form, in the table
on the Documents to Pay tab of the Prepare Payments form, the system displays aggregated lines (one line
per document). If at least one line in a bill or retainage document contains the same project as specified in the
Selection area, the document appears in the table as an aggregated line with the total amount for all lines of
the bill. For bills for which the Pay by Line check box was selected on the Bills and Adjustments form, the system
displays individual bill lines. You select the bills and individual lines for which you need to process payments,
 Part 2: Subcontracts and Accounts Payable | 51

specify the amount to be paid for each bill or line, and click Process on the form toolbar to generate the AP check
or checks.
Aer that, you release each AP check and check application on the Release Payments (AP505200) form; the system
updates the open balances of the lines to which each payment was applied. When the check is applied in full, it is
assigned the Closed status.

Workflow of the Process of Paying Bill Lines for a Project

The following diagram illustrates the workflow of processing payment for individual bill lines related to a vendor’s
work on a project.

Preparation of Separate Payments

When you mass-create payments for multiple bills or bill lines of a project on the Prepare Payments (AP503000)
form, the system groups the prepared accounts payable checks by vendor. That is, a separate AP check is created
for all bills and bill lines of the same vendor. If the Pay Separately check box is selected for a vendor on the
Payment tab of the Vendors (AP303000) form, however, each vendor document is paid with a separate check.
 Part 2: Subcontracts and Accounts Payable | 52

If you want to prepare a separate AP check for a specific bill, select the Pay Separately check box in the line
of the Documents to Pay tab on the Prepare Payments form. When you process multiple bills at a time, the
system prepares a separate AP check for each document that has the Pay Separately check box selected, and a
consolidated check for the rest of the documents of the same vendor selected for processing.
When you prepare a payment for multiple bill lines at a time, if the Pay Separately check box is selected for at least
one bill line, the system prepares a separate AP check for this bill and includes in this AP check all the bill lines that
have been selected for processing. For the rest of the bill lines and bills selected for processing that have this check
box cleared and have the same vendor, the system creates a consolidated check.

Vendor Payments for a Project: To Process a Payment of Bill Lines

This activity will walk you through generating a payment for particular bill lines related to a project and applying
this payment to bills.

Story
Suppose that the ToadGreen company is building a hotel for the Equity Group Investors customer; the ToadGreen
project manager has created a project to handle the tracking and billing of the materials and services related to
the hotel. On January 15, 2023, the ToadGreen company purchased 500 packages of concrete mix and 100 units
of plastic pipes from the Standard Hardware Company vendor for the hotel being built. On January 17, 2023, the
company also hired this vendor as a subcontractor to perform on-site work, which is broken into three phases.
On January 30, 2023, the concrete mix was delivered, and the first phase of the on-site work was performed. The
ToadGreen project accountant entered into the system two bills received from the Standard Hardware Company:
one (with a date of 1/15/2023) for all of the purchased materials, and another (with a date of 1/17/2023) for all
three phases of the on-site work. Acting as the ToadGreen project manager, you need to prepare a payment for the
materials and services that have been provided—that is, you will pay only particular lines of the bills.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Payment Application by Line
• Construction
• On the Projects (PM301000) form, the HOTEL project has been created for the Equity Group Investors
customer, and multiple project tasks have been created for the project.
• On the Non-Stock Items (IN202000) form, the LABOR, CONCRMX and PROJMATERIAL non-stock items have
been configured.
• On the Vendors (AP303000) form, the HARDCO vendor has been created. For this vendor, the CHECK payment
method is specified as the default one; also, the Pay by Line check box is selected on the Payment tab.
• On the Bills and Adjustments (AP301000) form, two bills for the materials and labor provided by HARDCO (one
for the materials and one for the labor) have been entered and released. Both bills have the Pay By Line
check box selected in the Summary area of the form.

Process Overview
You will find the bills related to the needed project and requiring payment on the Prepare Payments (AP503000)
form. Then you will prepare a single payment for particular lines of these bills. Finally, you will print the check
on the Process Payments / Print Checks (AP505000) form and will release the payment on the Release Payments
(AP505200) form.
 Part 2: Subcontracts and Accounts Payable | 53

System Preparation
To prepare to perform the instructions of this activity, in the info area, in the upper-right corner of the top pane of
the Acumatica ERP screen, make sure that the business date in your system is set to 1/30/2023. If a different date is
displayed, click the Business Date menu button, and select 1/30/2023 on the calendar. For simplicity, in this activity,
you will create and process all documents in the system on this business date.

Step 1: Selecting the Bills to be Paid

To select the bills to be paid, do the following:
1. Open the Prepare Payments (AP503000) form.
2. In the Summary area of the form, specify the following selection criteria to filter the data shown in the table:
• Branch: TBGROUP (inserted by default)
• Payment Method: CHECK
• Cash Account: 10200TG - ToadGreen Checking Account
• Payment Date: 1/30/2023
• Vendor: HARDCO
• Pay Date Within 7 Days
In the table, the system lists the lines of the two bills of the HARDCO vendor: two lines for materials and
three lines for services.
3. Select the unlabeled check box in the row with the CONCRMX item of the first bill, and in the row with
the LABOR item and a Line Nbr. of 1 of the second bill (which is the first part of the works that have been
performed and needs to be paid for). Make sure the Selection Total in the Summary area is $50,000. Also,
make sure that the Available Balance is enough to pay this amount.

Step 2: Preparing the Payments

To prepare the payments, do the following:
1. While you are still on the Prepare Payments (AP503000) form with the needed rows selected, click Process
on the form toolbar.
2. On the Process Payments / Print Checks (AP505000) form, which is opened with the only AP check listed in
the table and the unlabeled check box selected, click Process. A new browser tab is opened showing the
printable version of the check.
3. Close the tab with the printed check, and return to the Release Payments (AP505200) form, which the
system has opened. On the form, notice that the system has added a row with the payment and selected the
unlabeled check box in the row.
4. On the form toolbar, click Process to release the AP check.
5. In the Processing dialog box, which is opened, click the Processed tab, and in the table, click the link in the
Reference Nbr. column for the HARDCO check to open the check on the Checks and Payments (AP302000)
form.
6. On the Application History tab of the Checks and Payments form, make sure both bill lines to which the
payment has been applied are listed in the table, as shown in the following screenshot. The payment
amount has been applied in full, so the check is now assigned the Closed status.
 Part 2: Subcontracts and Accounts Payable | 54

Figure: Single payment applied to lines of two bills

You have prepared a payment for particular bill lines and applied this payment to these lines.

Vendor Payments for a Project: Generated Transactions

When an AP check is released, a batch of general ledger transactions is created; the generated transactions reduce
the balances of the cash account used for the check and the vendor's accounts payable account.

Account Source of Ac- Project Debit Credit

count

Cash account Vendor X (non-project 0.00 Payment amount

code)

Accounts Payable Vendor X (non-project Payment amount 0.00

code)

You can view the reference number of the GL batch on the Financial tab of the Checks and Payments (AP302000)
form.

Lesson 8: Preparing Joint Payments

Joint Payments: General Information

A joint check is a check generated for an accounts payable bill that is made payable to joint payees: your vendor,
whose work is tracked as part of the project, and another supplier or contractor who supplies materials or work for
this vendor directly. By issuing a joint check, you ensure that subcontractors pay their suppliers for their materials
or their work on the project.
 Part 2: Subcontracts and Accounts Payable | 55

In Acumatica ERP Construction Edition, you can create an AP bill for the vendor you work with and specify other
vendors in the bill who are not a part of a project but partially provide services or materials for the project. Then
you can create a joint check for this bill to the vendor you work with and to its supplier or subcontractor.

Learning Objectives
In this chapter, you will learn how to do the following:
• Specify joint payees for an AP bill
• Specify joint amounts for different lines of an AP bill
• Create joint checks and process the payments

Applicable Scenarios
You process a joint payment to register that the payment for the work performed for a particular project was made
jointly to two or more parties.

Creation of an AP Bill from Joint Payees

You enter a bill for joint payees on the Bills and Adjustments (AP301000) form. You perform the same steps as you do
when you add a bill for one vendor (including selecting the vendor that is working directly with you on the project),
except that you select the Joint Payees check box in the Summary area, and specify the following settings for each
payee involved on the Joint Payees tab:
• A joint payee or multiple joint payees who are not specified in the Vendor box, which you can specify in
either of the following ways:
• If the joint payee is also registered in your system as a vendor, you can select that vendor in the Joint
Payee (Vendor) column.
• If there is no vendor record that corresponds to the joint payee, you can type the name to be specified on
the joint check in the text box in the Joint Payee column.
• In the Bill Line Nbr. column, the bill line for which the joint payee is going to receive the payment (if the Pay
by Line check box is selected in the Summary area of the form).
• In the Joint Amount Owed column, the amount to be received by the joint payee, and in the Joint Amount
Paid column, the amount to be paid to the payee in the check to be created.
If the Pay by Line check box is selected in the Summary area of the form, on the Details tab, the Balance
of the line is reduced by the amount specified in the Joint Amount Paid column when the payment is
released. If the check box is cleared, the Joint Amount Paid affects the balance of the entire bill.

The sum of the joint amounts paid by all joint payees cannot be greater than or equal to the
total amount of the bill. At first, the joint balance for each line equals the joint amount owed.
Partial payments may be applied to the lines, and as a result, the joint balance will decrease
until it is completely paid and thus reduced to zero.

For details on creating a bill, see AP Bills: General Information.

Payment to Joint Payees

While you are viewing an AP bill for joint payees on the Bills and Adjustments (AP301000) form, you can create a
check for the joint bill by clicking Pay on the form toolbar. The system opens the Indicate Amounts to Pay dialog
box, in which you specify the amounts to be paid for each vendor. When you click Confirm in this dialog box, the
system creates a separate AP check for each vendor. You then print and release the checks to apply the payment to
the bill. For details on payments, see AP Bill Payments: General Information.
 Part 2: Subcontracts and Accounts Payable | 56

Joint Payments: Process Activity

This activity will walk you through the process of paying joint payees.

Story
Suppose that a storm broke windows in the hotel that the ToadGreen company is building for its customer, Equity
Group Investor. The ToadGreen project manager has decided to hire the Acme Doors & Glass vendor to handle the
replacement of the broken windows, the disposal of waste, and the cleaning of the area. In turn, Acme Doors &
Glass has hired the Standard Hardware Company and Conwaste subcontractors to dispose of the waste and clean
the area. On 1/30/2023, the subcontractors have performed part of the work and requested a first payment. Acting
as the ToadGreen project manager, you need to process all of the documents involved in paying the companies for
this part of the work, including joint payment.

Process Overview
To make a joint payment, you will first create an AP bill for the provided work on the Bills and Adjustments
(AP301000) form; you will add joint payees to it and specify the joint payment amounts. Then you will create and
process a check for this bill on the Checks and Payments (AP302000) form.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The following features have been enabled on the Enable/Disable Features (CS100000) form:
• Construction
• Payment Application by Line
• Cost Codes
• On the Vendors (AP303000) form, the ACMEDO vendor has been created. On the Payment Settings, the Pay
by Line check box is selected for the vendor. In the Cash Account box, the 10200TG cash account is specified
for the vendor.
• On the Projects (PM301000) form, the HOTEL project has been created with multiple project tasks, including
the 02 - SITEWORK project task.
• On the Non-Stock Items (IN202000) form, the WDISMANT, WDISPOS, and WCLEAN items have been added.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a project manager by using the ewatson username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Processing a Joint Bill

To create a bill for joint payees, do the following:
 Part 2: Subcontracts and Accounts Payable | 57

1. On the Bills and Adjustments (AP301000) form, create a new document, and specify the following settings in
the Summary area:
• Type: Bill
• Vendor: ACMEDO (Acme Doors & Glass)
• Apply Retainage: Cleared
• Pay by Line: Selected
With this setting, you can prepare separate payment documents for individual bill lines.
• Joint Payees: Selected
• Description: Replacing broken windows after the storm
2. On the Details tab, add lines with the following settings.

Inventory ID Quantity Unit Cost Project Project Task Cost Code

WDISMANT 8 500.00 HOTEL 02 02-000

WDISPOS 4 200.00 HOTEL 02 02-000

WCLEAN 4 100.00 HOTEL 02 02-000

3. On the Joint Payees tab, add lines with the settings specified in the table below.

Joint Payee (Vendor) Joint Payee Bill Line Nbr. Joint Amount Owed

Empty Conwaste 2 450.00

HARDCO Empty 3 210.00

4. On the form toolbar, click Remove Hold, and then click Release.

Step 2: Processing a Joint Payment

To process a joint payment, do the following:
1. While you are still on the Bills and Adjustments (AP301000) form with the bill that you have entered, on the
form toolbar, click Pay.
2. In the Indicate Amounts to Pay dialog box, which opens, specify the details of the joint payments to be
prepared by doing the following:
a. In the Amount to Pay box, enter 390.
This amount defines the part of the payment that the Acme Doors & Glass vendor is going to receive.
b. In the table line for the Conwaste joint payee, specify 190 in the Joint Amount to Pay column.
c. In the table line for the HARDCO joint payee, specify 120 in the Joint Amount to Pay column.
d. Click Confirm. The system closes the dialog box and prepares the following joint checks:
• A $390 check, which is the payment to the ACMEDO vendor. The system opens this check on the
Checks and Payments (AP302000) form.
• A $190 check, which is the joint payment for the Conwaste joint payee.
• A $120 check, which is the joint payment for the HARDCO joint payee.
3. On the Checks and Payments form with the $390 check, click Remove Hold on the form toolbar, and save
your changes.
 Part 2: Subcontracts and Accounts Payable | 58

4. On the form toolbar, click Go to Next Record to open the $190 check. Click Remove Hold on the form
toolbar, and save your changes.
5. Again click Go to Next Record on the form toolbar to open the $120 check. Click Remove Hold on the form
toolbar, and save your changes.
6. Open the Process Payments / Print Checks (AP505000) form, and specify the following settings in the
Selection area:
• Payment Method: CHECK
• Cash Account: 10200TG
7. In the table, select the unlabeled check box for all three joint checks, and on the form toolbar, click Process
to print the checks. A separate browser tab is opened showing the printable version of the checks.
8. Review the printable version of the check, and close the browser tab to return to the Release Payments
(AP505200) form that the system has opened.
9. On the Release Payments form, make sure that the unlabeled check boxes are selected for all three
payments, and on the form toolbar, click Process to release the payments.
10.On the Bills and Adjustments form, open the bill to ACMEDO for which you have processed the payment, and
review the Joint Amount Application tab, as shown in the following screenshot.

Figure: Joint payments prepared for the bill

You have prepared joint checks and partially paid the bill.

Lesson 9: Processing Compliance Documents and Lien Waivers

 Part 2: Subcontracts and Accounts Payable | 59

Compliance Documents: General Information

Companies that manage construction projects have requirements to protect their customers, vendors, suppliers,
and partners from potential issues associated with compliance. These compliance issues might be associated with
federal, state, and local governmental requirements, but may also be legal and procedural. By tracking compliance,
a company can establish the compliance documents that should be captured for different types of entities, so that
this information can be used for in-place warnings to users and for reports on project exposure.

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure categories and statuses for compliance documents
• Enter compliance documents for a vendor
• Track expired compliance documents

Applicable Scenarios
You apply a compliance document to an entity in the system when it is necessary to warn users about potential
issues associated with compliance.

Creation of Compliance Types

You can use compliance types—that is, types of compliance documents—for tracking and reporting on compliance
issues. The following compliance types are predefined on the Custom Attributes tab of the Compliance Preferences
(CL301000) form:
• Certificate
• Insurance
• Lien Waiver
• Notice
• Status
• Other
You define the values of the custom attributes for any of the listed compliance types on the Compliance Preferences
form. On the Common Attributes tab of the form, you can also configure common attributes that are available for
all types of compliance documents. Once attribute values have been configured for a compliance type, you can
enter and view compliance documents of that type on the Compliance Management (CL401000) form.

Warnings About Compliance Issues

Each compliance document can be associated with various types of documents and with multiple entities, such as
project, project task, cost code, vendor, and customer. On the Compliance tab of each of the following forms, you
can enter and review the compliance document associated with the document or entity:
• Vendors (AP303000)
• Bills and Adjustments (AP301000)
• Checks and Payments (AP302000)
• Customers (AR303000)
• Invoices and Memos (AR301000)
• Projects (PM301000)
 Part 2: Subcontracts and Accounts Payable | 60

• Project Tasks (PM302000)

• Project Transactions (PM304000)
• Purchase Orders (PM301000)
• Change Orders (PM308000)
• Subcontracts (SC301000)
Based on the entered information, the system warns users of any records with compliance issues where applicable.
For example, if a compliance document is overdue for a particular bill, the system displays a warning message on
the Bills and Adjustments form.

Compliance Documents: To Configure Attributes for Compliance Documents

This activity will walk you through the process of specifying custom attributes for compliance documents.

Story
Suppose that the ToadGreen company needs to keep track of the insurance documents and certificates in the
system. Acting as a ToadGreen system administrator, you need to specify the values for the custom attributes of
the Insurance, Certificate, and Status compliance type, so that users can specify their values for the compliance
documents.

Configuration Overview
For the purposes of this activity, the Construction feature has been enabled in the Projects group of features on the
Enable/Disable Features (CS100000) form.

System Preparation
Sign in to the system as a system administrator by using the gibbs username and the 123 password.

Step: Configuring Document Categories and Statuses

To perform configuration, do the following:
1. Open the Compliance Preferences (CL301000) form.
2. On the Custom Attributes tab, in the Attribute box, select Insurance to specify the possible types for the
insurance documents.
3. In the table, add five rows (by clicking Add Row on the table toolbar for each), and specify the following
values in the Value column of each row:
• General Liability Coverage
• Worker's Compensation Insurance
• Commercial Automotive Insurance
• Surety Bonds
• Asset Protection
4. In the Attribute box, select Certificate to specify the possible types for the certificate documents.
5. In the table, add five rows, and specify the following values in the Value column of each row:
• Safety Certification
• Hazardous Materials Certification
• Occupational Safety and Health Administration (OHSA)
 Part 2: Subcontracts and Accounts Payable | 61

• Project Management Institute (PMI)

• Leadership in Energy & Environmental Design (LEED)
6. In the Attribute box, select Status to specify the possible statuses for all compliance documents.
7. In the table, add two rows, and specify the following values in the Value column of each row:
• Valid
• Expired
8. Save your changes.

You have configured the types of compliance documents and defined the applicable statuses for them.

Compliance Documents: To Track Compliance Documents for a Vendor

This activity will walk you through the process of working with compliance documents.

Story
Suppose that the Standard Hardware Company vendor has provided the ToadGreen company with its OSHA
certificate and its general liability insurance. Acting as a construction project manager, you need to enter this
information in the system.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction feature has been enabled.
• On the Vendors (AP303000) form, the HARDCO - Standard Hardware Company vendor has been added.

Process Overview
You will add compliance documents on the Compliance Management (CL401000) form. You will then review the
documents of a particular vendor on the Vendors (AP303000) form.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in as a construction project manager by using the ewatson username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Entering Compliance Documents

To enter the OSHA certificate and general liability insurance documents, do the following:
1. Open the Compliance Management (CL401000) form.
2. On the All Records tab, click Add Row on the table toolbar, and specify the following settings in the added
row:
• Document Type: Certificate
 Part 2: Subcontracts and Accounts Payable | 62

• Creation Date: 1/30/2023

• Document Category: Occupational Safety and Health Administration (OHSA)
• Status: Valid
• Required: Selected
• Received from Vendor: Selected
• Effective Date: 1/1/2023
• Expiration Date: 1/31/2023
• Vendor: HARDCO
• Certificate Number: 235568
3. Save the changes.
4. Again click Add Row on the table toolbar, and specify the following settings in the added row:
• Document Type: Insurance
• Creation Date: 1/30/2023
• Document Category: General Liability Coverage
• Status: Valid
• Required: Selected
• Received from Vendor: Selected
• Effective Date: 1/1/2023
• Expiration Date: 1/31/2023
• Limit: 10,000,000
• Vendor: HARDCO
• Insurance Company: Insurance of NY
• Policy: 865532
5. Save the changes.

Step 2: Tracking the Compliance Documents

To track the compliance documents for the vendor, do the following:
1. Open the Vendors (AP303000) form.
2. Select the HARDCO vendor, and make sure the compliance documents are shown on the Compliance tab.
3. In the info area, in the upper-right corner of the top pane, change the business date to 2/1/2023. On the
Compliance tab, review the compliance expiration warnings for each line.
Because you have specified the expiration date of the compliance documents as the last day of the current
month, the system now marks those documents as expired.
4. Open the Bills and Adjustments (AP301000) form.
5. On the form toolbar, click Add New Record, and in the Summary area, specify the following settings:
• Type: Bill
• Vendor: HARDCO
As soon as you select the HARDCO vendor, a warning about the expired compliance document appears next
to the Vendor box.
6. Close the form without saving your changes to the bill, which was created solely for testing purposes.

You have added compliance documents for the vendor and verified that the compliance is tracked.
 Part 2: Subcontracts and Accounts Payable | 63

Compliance Documents: Lien Waivers

A lien waiver is a compliance document involved in the payment process for a project. The party that receives a
payment (for instance, a contractor, subcontractor, or supplier of materials) signs a lien waiver to waive their rights
against the property in exchange for the payment.

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure the automatic generation of lien waivers
• Print and email lien waivers
• Manually add a lien waiver for a document
• Set up warnings on outstanding lien waivers

Applicable Scenarios
In construction projects, you issue lien waivers to reflect that a payee waives their lien rights for a corresponding
amount in exchange for the received payment or the promise of payment.

Lien Waiver Configuration Checklist

The system will generate lien waivers if the following configuration conditions are met:
• The generation of lien waivers of the particular type (conditional or unconditional) has been configured on
the Compliance Preferences (CL301000) form.
• The Generate Lien Waivers Based on Project Settings check box is selected for the particular vendor (or
joint payee) on the Financial tab of the Vendors (AP303000) form. Also, on the Mailing & Printing tab of this
form, mailing settings have been configured for the vendor.
• The vendor (or joint payee) belongs to a vendor class that is listed in the settings of the project to which the
commitment is performed—that is, it is listed in the table on the Lien Waiver Settings tab of the Projects
(PM301000) form.
• The accounts payable check has the related commitment (that is, a subcontract or a purchase order); the
amount of this commitment is larger than or equal to the minimum commitment amount specified on the
Projects form for the vendor class to which the vendor (or joint payee) belongs.
• If the accounts payable check includes lines related to multiple projects, the related accounts payable bills
must have the Pay by Line check box selected in the Summary area of the Bills and Adjustments (AP301000)
form.
For detailed descriptions of the lien waiver types and settings, see the sections below.

Configuration of Lien Waivers for Vendors

You can set up the automatic generation of lien waivers in the system for conditional or unconditional lien waivers.
You also can manually create lien waivers and edit them (including those generated automatically).
The system automatically generates lien waivers for the vendors that belong to the vendor classes that have the
Generate Lien Waivers Automatically check box selected on the General tab of the Vendor Classes (AP201000)
form.
 Part 2: Subcontracts and Accounts Payable | 64

For a particular vendor of the class, you can disable the generation of lien waivers by clearing the
Generate Lien Waivers Based on Project Settings check box on the Financial tab of the Vendors
(AP303000) form.

For each particular project, you can configure the list of vendors for which the lien waivers should be generated
by specifying the applicable vendor classes on the Lien Waiver Settings tab of the Projects (PM301000) form. For
each vendor class, you specify a minimum commitment amount so that lien waivers are automatically generated
for each project commitment whose amount is larger than or equal to the specified minimum amount.
If the primary vendor and the joint vendor are paid with one accounts payable check, one lien waiver is generated
for each combination of vendor and joint payee. Aer the lien waiver is processed, one printed form of the
document is attached to the primary vendor and one to the joint payee.

Conditional Lien Waivers

The system generates two types of conditional lien waivers: partial lien waivers and final lien waivers. You can set
up the automatic generation of lien waivers in the system for conditional lien waivers. You also can manually create
lien waivers, and edit lien waivers (including those generated automatically).
You enable the generation of conditional waivers in the system by selecting the Automatically Generate Lien
Waivers check box in the Conditional Lien Waiver section on the Compliance Preferences (CL301000) form. The
system will generate lien waivers on paying an AP bill—that is, when the status of the corresponding accounts
payable check changes to Pending Printing or Balanced.
Conditional lien waivers for partial payment are generated when a progress payment on the project is expected. A
signed lien waiver of this type becomes effective immediately aer the payment has been prepared.
Final lien waivers of this type are generated in any of the following cases:
• The entire commitment value is to be paid at one time.
• The payment in question is the final payment for a commitment—that is, other lien waivers related to the
same combination of project, vendor, and commitment exist in the system, and the lien notice amount is
specified. The lien notice amount is equal to the sum of all lien waiver amounts related to the combination
of project, vendor, and commitment (excluding newly created lien waivers) plus the AP bill amount.
A signed final lien waiver becomes effective only aer the payment has been prepared. The amount of an
automatically generated final conditional lien waiver equals the amount of the accounts payable bill.

Unconditional Lien Waivers

The system generates two types of unconditional lien waivers: partial lien waivers and final lien waivers. You enable
the generation of unconditional waivers in the system by selecting the Automatically Generate Lien Waivers
check box in the Unconditional Lien Waiver section of the Compliance Preferences (CL301000) form. The system
will generate lien waivers when an AP bill is paid—that is, when the status of the corresponding accounts payable
check is changed to Pending Printing or Balanced.
Unconditional waivers for partial payment are generated when a progress payment on the project is expected. A
lien waiver of this type becomes effective aer it has been signed, regardless of whether the payment has actually
been received.
Final lien waivers of this type are generated in any of the following cases:
• The entire commitment value is to be paid at one time.
• The payment in question is the final payment for a commitment, that is, other lien waivers related to the
same combination of project, vendor, and commitment exist in the system, and the lien notice amount is
specified. (The lien notice amount equals the sum of all lien waiver amounts related to the combination of
project, vendor, and commitment (excluding newly created lien waivers) plus the amount paid.)
 Part 2: Subcontracts and Accounts Payable | 65

A final lien waiver becomes unconditionally effective once it has been signed, even if no payment has actually been
received. The amount of an automatically generated unconditional lien waiver will equal the amount paid on the
accounts payable bill.

Manual Creation of Lien Waivers

You may need to manually add a lien waiver in the following cases:
• The automatic generation of conditional or unconditional lien waivers is not set up in the system.
• Generation of lien waivers has not been configured for a particular vendor for which you need to create a
lien waiver.
• An accounts payable bill is not linked to a project commitment (that is, to a purchase order or a
subcontract).
You can manually add a lien waiver as follows:
• On the Compliance Management (CL401000) form, you can add a row to the table, and select Lien Waiver in
the Document Type column, and specify the type of the lien waiver in the Document Category column.
Then you need to specify the document (accounts payable bill or check) for which the lien waiver is being
added, the corresponding project, the lien waiver amount, and other applicable details. In the payment
created for the bill for which a manual lien waiver was specified, you can review this lien waiver on the
Compliance tab of the Checks and Payments (AP302000) form.
• On the Bills and Adjustments (AP301000) form, you open the document for which you need to create a
lien waiver, and on the Compliance tab, you add a row for a lien waiver. In this line, you select the Link
to Payment check box, select Lien Waiver in the Document Type column, and specify the type of the lien
waiver in the Document Category column.

Notification About Outstanding Lien Waivers

An outstanding lien waiver is a lien waiver that has not been marked as received and whose Through Date on
the Compliance Management form is earlier than the current business date in the system. The system searches for
outstanding lien waivers through all compliance documents related to the particular combination of the project
and primary and joint vendors.
You configure the notification about outstanding lien waivers on the Compliance Preferences (CL301000) form. To
do this, you select the Warn of Outstanding Lien Waivers During AP Bill Entry check box to show a warning when
a user enters an accounts payable bill. You can also select the Warn of Outstanding Lien Waivers when Selecting
AP Bill for Payment to show a warning when a user attempts to pay a bill. To completely prevent the payment
of bills for which linked outstanding lien waivers exist, you select the Stop Payment of AP Bill when There Are
Outstanding Lien Waivers check box.

If the primary vendor specified in an accounts payable check has an outstanding lien waiver, the
payment for the joint payee will be prohibited from processing as well.

Mass-Processing of Lien Waivers

You run the printing or emailing of lien waivers on the Print/Email Lien Waivers (CL502000) form. On this form, you
select Print Lien Waivers or Email Lien Waivers in the Action box, select the unlabeled check boxes in the rows for
the lien waivers to be processed, and click Process on the form toolbar. The system prepares printable forms for
the selected documents. For the joint payments, the printable form is generated both for the primary vendor and
for all joint payees in the check.
 Part 2: Subcontracts and Accounts Payable | 66

Compliance Documents: To Configure Lien Waivers

This activity will walk you through the process of configuring the mailing and generation of lien waivers.

Story
Suppose that the ToadGreen company requires conditional lien waivers to be automatically generated when
payments of an amount greater than $2000 are submitted. Acting as a system administrator, you need to configure
the mailing and automatic generation of lien waivers. Then you need to configure the automatic generation of lien
waivers for a particular vendor.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The Construction and Construction Project Management features have been enabled on the Enable/Disable
Features (CS100000) form.
• On the Vendor Classes (AP201000) form, the SUBCON vendor class has been created.
• On the Projects (PM301000) form, the HOTEL project has been defined.

System Preparation
Before beginning this activity, you should sign in as a system administrator by using the gibbs username and the
123 password.

Step 1: Configuring the Mailing of Lien Waivers

The processing of lien waivers includes emailing the documents to vendors who should return signed versions of
them. In this step, you will perform the needed configuration of this mailing so that the system can generate emails
with lien waivers attached.
To configure the mailing, do the following:
1. Create a notification template for lien waivers as follows:
a. Open the Email Templates (SM204003) form.
b. Click Add New Record on the form toolbar, and specify the following settings in the Summary area:
• Description: Lien Waivers
• Screen Name: Print/Email Lien Waivers (CL502000)
• Subject: Lien waiver
c. In the text editor area on the Message tab, enter the following text:
Dear Vendor,
Your lien waiver is attached. Please return a signed version of the
document.
Sincerely yours,
ToadGreen Building Group
d. Save your changes.
2. On the Vendor Classes (AP201000) form, open the SUBCON vendor class.
3. On the Mailing & Printing tab, do the following:
 Part 2: Subcontracts and Accounts Payable | 67

a. In the line with the Conditional Final mailing in the Mailings table, select Lien Waivers in the Email
Template column. Make sure that the Active check box is selected and CL.64.20.03 is specified in the
Report box in the line.
b. In the Recipients table, add a new line and select Remittance in the Contact Type box. Make sure that
the Active check box is selected in the line.
c. In the line with the Conditional Partial mailing in the Mailings table, select Lien Waivers in the
Notification Template column. Make sure that the Active check box is selected and CL.64.20.01 is
specified in the Report box in the line.
d. In the Recipients table, add a new line and select Remittance in the Contact Type box. Make sure that
the Active check box is selected in the line.
e. Save your changes.
When generating emails with lien waivers, the system will insert the email address of the remittance
contact of the vendor as the recipient address. Emails will be sent from the default system email account.

Step 2: Configuring the Automatic Generation of Lien Waivers for a Vendor

To configure lien waivers for a vendor, do the following:
1. On the Lien Waiver Settings tab of the Compliance Preferences (CL301000) form, do the following:
a. Select the Automatically Generate Lien Waivers check box in the Conditional Lien Waivers section.
b. Review the default settings, and click Save on the form toolbar.
2. Open the HOTEL project on the Projects (PM301000) form.
3. In the Conditional Lien Waivers section on the Lien Waiver Settings tab, make sure Posting Period End
Date is specified in the Through Date box.
4. In the table, add a new row, and specify the following settings in the added row:
• Vendor Class: SUBCON
This indicates that conditional lien waivers can be automatically generated for vendors that belong to
this vendor class.
• Minimum Commitment Amount: 2000
Lien waivers will be automatically generated for commitments whose amount is greater than or equal to
this amount.
5. Save your changes.
6. Open the SUBCON vendor class on the Vendor Classes (AP201000) form.
7. On the General tab, select the Generate Lien Waivers Automatically check box to indicate that lien
waivers will be automatically generated for vendors that belong to this vendor class. The lien waiver
settings specified for the particular project will be used for generating the lien waivers.
8. Save your changes.
9. Open the Vendors (AP303000) form,
10.Click Add New Record on the form toolbar, and specify the following settings in the Summary area:
• Vendor ID: ARCHCO
• Vendor Class: SUBCON
11.On the General tab, enter Architectural Design Company in the Account Name box.
12.In the Primary Contact section, specify the following settings:
• First Name: Evelyn
• Last Name: Stewart
• Email: [email protected]
 Part 2: Subcontracts and Accounts Payable | 68

13.On the Financial tab, make sure that the Generate Lien Waivers Based on Project Settings check box is
selected.
14.On the Payment tab, select the Override check box in the Remit-To Info section, and type
[email protected] in the Email box.
15.Save the changes.

You have configured lien waivers and created a vendor for which the system will send lien waivers automatically
based on the amount of the commitment.

Compliance Documents: To Send Lien Waivers

This activity will walk you through the process of working with lien waivers.

Story
Suppose that the ToadGreen company pays a bill to a subcontractor, the Architectural Design Company. Acting as a
project manager, you need to enter a subcontract, create and pay these bills in the system, and make sure that the
related lien waivers have been generated and sent to the subcontractor.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction and Construction Project Management
features have been enabled.
• On the Non-Stock Items (IN202000) form, the CONCRMX non-stock item has been created.
• On the Projects (PM301000) form, the HOTEL project has been created with multiple project tasks, including
02 - SITEWORK.

System Preparation
Before you start working with subcontracts, do the following:
1. Sign in as a construction project manager by using the ewatson username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 2/15/2023. If a different date is displayed, click the Business Date menu
button, and select 2/15/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step: Working with Lien Waivers

Process a subcontract and review the generated lien waiver by doing the following:
1. On the Subcontracts (SC301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Vendor: ARCHCO
• Location: MAIN (selected automatically)
• Date: 2/15/2023
• Description: Purchase of concrete for Hotel project
3. On the Details tab, add a row, and specify the following settings in the added row:
 Part 2: Subcontracts and Accounts Payable | 69

• Inventory ID: CONCRMX

• Project: HOTEL
• Project Task: 02 - SITEWORK
• Cost Code: 02-000
• Order Qty.: 100
• Unit Cost: 500
The subcontract total is 50,000, which exceeds the minimum commitment amount specified for the vendor
and project.
4. On the form toolbar, click Remove Hold to assign the subcontract the Open status.
5. On the form toolbar, click Enter AP Bill.
The Bills and Adjustments (AP301000) form opens with the new document that has the Bill type (which is
specified in the Type box in the Summary area) and the document details copied from the subcontract to
the Details tab.
6. On the form toolbar, click Remove Hold, and then click Release to release the bill.
7. On the form toolbar, click Pay.
The Checks and Payments (AP302000) form opens with the AP check prepared for the bill. The check should
have the On Hold status. Open the Compliance tab and notice that it is empty.
8. On the form toolbar, click Remove Hold, and then click Save. The system automatically generates a lien
waiver and adds a line on the Compliance tab, as shown in the following screenshot.

Figure: Lien waiver generated for the payment

The same lien waiver record also appears on the Compliance tab of the Projects (PM301000),
Vendors (AP303000), Subcontracts (SC301000), and Bills and Adjustments (AP301000) forms for
the involved records; it also appears on the Compliance Management (CL401000) form.

9. On the Print/Email Lien Waivers (CL502000) form, do the following:

a. In the Action box, select Email Lien Waivers.
b. Select the unlabeled check box for the lien waiver that was automatically created earlier in this activity.
c. Click Process on the form toolbar.
10.Open the Outgoing (CO4092PL) inquiry form.
11.On the My Emails tab, review the list of outgoing emails. Make sure the line for the sent email
has been added; the line should have the Lien waiver description in the Subject box, and
[email protected] must be specified in the To box.
12.Open the Compliance Management (CL401000) form.
 Part 2: Subcontracts and Accounts Payable | 70

13.On the Lien Waivers tab, review the details of the processed lien waiver, and make sure it has the
Processed check box selected.
14.In the row with the lien waiver, select the Received from Vendor check box to indicate that the signed copy
of the lien waiver has been received from the vendor.
15.Save your changes.

You have finished working with the lien waiver.

Lesson 10: Processing Purchases with a Sales Tax

Purchases with a Sales Tax: General Information

A sales tax is a tax paid by a company to its vendors as a part of the amount of an AP bill. When the company pays
the accumulated tax amounts to the responsible tax agency, the tax amounts are reduced by the amount of sales
tax paid to the vendors. In Acumatica ERP, the system calculates the sales tax in vendor documents automatically.

Learning Objectives
In this chapter, you will learn how to do the following:
• Learn how to configure a sales tax
• Learn how to create an AP bill with a sales tax applied
• Release an AP bill and review the GL batch generated by the system

Applicable Scenarios
You create an AP bill with any number of sales taxes to record a purchase that is subject to sales taxes.

Tax Calculation in Purchase Orders

The system calculates taxes based on the following details specified in the AP document created on the Bills and
Adjustments (AP301000) form:

• The vendor
• The inventory IDs
• The total price of the inventory items
• The document date
The system calculates the tax and taxable amounts of the AP document by using the settings of each tax that
corresponds to both of the following:
• The tax category of the specified inventory ID in each line of the bill
• The tax zone of the selected vendor
The system calculates the tax and taxable amounts for each line of the document or for the total document
amount, depending on the settings of the applied tax. The system inserts the sales tax amount in the Tax Total box
in the Summary area of the Bills and Adjustments form.
When you release the AP document, the system creates the corresponding GL transaction and records these
amounts to the appropriate GL accounts.
 Part 2: Subcontracts and Accounts Payable | 71

Purchases with a Sales Tax: To Configure a Sales Tax for Project Purchases

This activity will walk you through the process of creating a sales tax in the system.

Story
Suppose that the ToadGreen company buys goods from its suppliers and pays sales tax on these purchases. The
rate of the sales tax is 8.875%; the tax amount must be calculated on the sum of the line amounts to which this tax
is applied. You need to configure a sales tax to be calculated for AP documents; the calculated tax amounts can
then be claimed from a tax agency.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Tax Zones (TX206000) form, the NYZONE tax zone has been created.
• On the Tax Categories (TX205500) form, the TAXABLE category has been created.
• On the Chart of Accounts (GL202500) form, the 24100 - Tax Payable and 69000 - Tax Expenses accounts have
been created. The 69000 - Tax Expenses account is included in the MATERIAL account group.

System Preparation
To prepare to perform the instructions of the activity, sign in as a system administrator by using the gibbs username
and the 123 password.

Step: Creating a Sales Tax

To create a sales tax, proceed as follows:
1. On the Taxes (TX205000) form, add a new record.
2. On the Tax Settings tab, specify the following settings:
• Tax ID: NYSALESTAX
• Description: New York sales tax
• Tax Type: Sales
• Calculation Rule: Exclusive Document-Level
This setting means that the tax amount is calculated on the sum of the line amounts to which this tax is
applied.
• Cash Discount: Does Not Affect Taxable Amount
3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
• Start Date: 1/1/2023
• Tax Rate: 8.875
• Reporting Group: Default Input Group
• Group Type: Input (specified automatically)
An Input group is specified for a tax that can be claimed from a tax agency.
4. On the Categories tab, click Add Row on the table toolbar, and select TAXABLE in the Tax Category column.
5. On the Zones tab, click Add Row on the table toolbar, and select NYZONE in the Tax Zone ID column.
6. On the GL Accounts tab, specify the following settings:
 Part 2: Subcontracts and Accounts Payable | 72

• Tax Payable Account: 24100 - Tax Payable

The Tax Payable account is the liability account that accumulates the tax amounts to be paid to the tax
agency. The account is credited in the tax amount when taxable invoices are released.
• Use Tax Expense Account: Selected
• Tax Expense Account: 69000 - Tax Expenses
The Tax Expenses account (69000) is included in the MATERIAL account group so that tax expenses will be
posted to the project specified for the AP document lines.
7. On the form toolbar, click Save to save your changes.

You have configured a sales tax.

Purchases with a Sales Tax: To Process a Project-Related Bill with a Tax

This activity will walk you through the process of creating and releasing an AP bill with a sales tax.

Story
Suppose that on 1/30/2023, the ToadGreen company purchases 500 packages of a concrete mix from the Concrete
Supply Co. vendor. The vendor is located in the state of New York, and the New York sales tax has to be applied to
this purchase. Acting as the project manager, you need to enter the AP bill, release it, and review how the system
calculates the sales tax.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Projects, Cost Codes, and Construction features have
been enabled.
• On the Vendors (AP303000) form, the CONCRESUP vendor account for the Concrete Supply Co. has been
created. On the Purchase Settings tab (Default Location Settings section), in the Tax Zone box, the
NYZONE tax zone is selected for this vendor.
• On the Non-Stock Items (IN202000) form, the CONCRMX non-stock item has been created.
• On the Projects (PM301000) form, the HOTEL project has been created with multiple project tasks, including
the 02 - SITEWORK project task. The 02-000 cost code has been created on the Cost Codes (PM209500) form.

Process Overview
You will create and release a bill with a taxable item on the Bills and Adjustments (AP301000) form. You will then
review the transaction generated on release of the bill on the Journal Transactions (GL301000) form, and the related
project transaction on the Project Transactions (PM304000) form.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a project manager by using the ewatson username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
 Part 2: Subcontracts and Accounts Payable | 73

Step 1: Creating and Releasing an AP Bill with a Sales Tax

Create a bill by doing the following:
1. On the Bills and Adjustments (AP301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Bill
• Vendor: CONCRESUP
• Description: Concrete mix for HOTEL project
3. On the Details tab, add a line with the following settings:
• Inventory ID: CONCRMX
• Quantity: 500
• UOM: EA
• Unit Cost: 85
• Project: HOTEL
• Project Task: 02 - SITEWORK
• Cost Code: 02-000
• Tax Category: TAXABLE
4. Save the bill, and on the Taxes tab, review the details of the calculated sales tax. The system applied the
NYSALESTAX to the bill based on the tax zone settings and the tax category of the item. The taxable amount
is $42,500.00, and the calculated total tax is $3,771.88.
5. On the form toolbar, click Remove Hold, and then click Release to release the bill.

Step 2: Reviewing the GL Batch and Related Project Transaction

Perform the following steps:
1. While you are still on the Bills and Adjustments (AP301000) form, on the Financial tab, click the Batch Nbr.
link. The system opens the batch of general ledger transactions on the Journal Transactions (GL301000)
form.
2. Review the batch that was generated on release of the bill, and make sure the amounts have been recorded
to general ledger as follows:
• The Accounts Payable account of the vendor (20000) is credited in the total amount of the bill (the total of
the line plus the total of the calculated tax). The non-project code (X) is specified in this line.
• The Project Material Expense account (54700) is debited in the amount specified in the document line.
The material expenses have been recorded to the HOTEL project and the 02 project task.
• The Tax Expenses account specified for the tax (69000) is credited in the calculated tax amount. The tax
expenses have been recorded to the HOTEL project and the 02 project task.
3. On the Project Transactions (PM304000) form, open the project transaction with AP specified as the Module
and with the Concrete mix for HOTEL project description that was generated from the general ledger
transaction. Make sure that the project transaction includes two lines: a line related to the materials bought
for the project, and a line for the related tax expenses, as shown in the screenshot below.
 Part 2: Subcontracts and Accounts Payable | 74

Figure: Project transaction generated for the batch

You have finished processing a taxable bill for a project and have recorded the expenses to the project budget.
 Part 3: Project Budget Tracking | 75

Part 3: Project Budget Tracking

Lesson 11: Forecasting Budget

Budget Forecasts: General Information

You prepare a budget forecast for a long-term project if you need to break down the structure of the project budget
by financial period. This gives you the ability to compare and analyze monthly budgets versus actual revenue and
expenditures.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create a budget forecast for a project
• Add financial periods to the budget forecast
• Distribute budgeted values among the financial periods
• Update the project budget based on the forecast
• Update the financial periods in the forecast based on the updated actual values

Applicable Scenarios
You create a budget forecast for a project if you need to break down the budget structure by financial periods to be
able to control the budget performance by periods.

Creation of the Project Budget Forecast

Each project can have multiple revisions of the budget forecast. For a new project budget forecast, in the Summary
area of the Project Budget Forecast (PM209600) form, you select the project and enter an alphanumeric revision
identifier of the budget forecast, which must be unique within the project. When you enter the revision, the system
automatically fills in the table with the revenue and cost budget lines of the selected project.
In a forecast revision, you distribute the original and revised budget amounts of existing revenue and cost budget
lines among the financial periods in the selected range to estimate planned project revenue and expenses by these
periods.
You can manually add financial periods for a selected budget line of the forecast revision by clicking Add Periods
on the table toolbar and selecting the range of financial periods in the Add Periods dialog box.
You can also make the system automatically add financial periods for all the project budget lines of the forecast
revision listed in the table according to the selection criteria specified in the Summary area. When you click
Generate Periods on the form toolbar, for each line in the table, the system adds financial periods based on the
settings of the project task and related project transactions. For more information on how the system determines
the range of periods to be added, see Project Budget Forecasts: Generation of Periods.
Each financial period added for a project budget line of the forecast revision has quantities and amounts of zero.
You can manually specify the Original Budgeted Quantity, Original Budgeted Amount, Revised Budgeted
Quantity, and Revised Budgeted Amount values for each period of the project budget line.
 Part 3: Project Budget Tracking | 76

You can also distribute the original and revised quantities and amounts of project budget lines among period lines
automatically by clicking Generate Forecast on the form toolbar. In the Distribute dialog box, you specify which
values the system should distribute, in which columns, and for which budget lines. The distribution function rounds
equally distributed values by using the logarithmic rounding algorithm. For an example of rounding, see Project
Budget Forecasts: Example of Rounding.

For each project budget line with added period lines, the system calculates the following totals in the Original
Budgeted Quantity, Original Budgeted Amount, Revised Budgeted Quantity, and Revised Budgeted Amount
columns:
• Total: The total of the period lines
• Delta: The difference between the value of the project budget line and the total of the period lines

Processing Project Budget Forecasts

When the actual values of a project are updated, the system automatically updates the actual values of the budget
forecasts of the project. The system calculates the differences between the revised budgeted values and the actual
values in the Revised Quantity - Actual Quantity and Revised Amount - Actual Amount columns on the Project
Budget Forecast (PM209600) form, so that you can compare the performance of each budget line by period.

If you need to update financial periods of a project budget line of the forecast revision, you click this line in the
table on the Project Budget Forecast form, and on the table toolbar, click Update Forecast Lines. For the selected
line, the system adds the financial periods to which actual values or change order values have been posted for the
corresponding project budget line and that have been missed in the forecast revision.
If you need to update the original and revised budgeted values of the corresponding project budget line on the
Projects form with the delta values of a project budget line of the forecast revision, you click this line of the forecast
revision in the table on the Project Budget Forecast form, and on the table toolbar, click Update Project Budget
Line.
The system allows to restructure the budget of the project and delete the project budget lines for which the
corresponding forecast lines have been created. The changes in the project budget structure affects the project
budget forecast as follows:
• If you delete a project budget line, the corresponding budget forecast lines are not deleted. The system will
keep the forecast and if you restore this project budget line, the forecast for this line will be also restored.
• If you delete a project task along with all the cost budget lines that includes this project task, the
corresponding budget forecast lines are deleted.

Budget Forecasts: To Prepare a Budget Forecast

This activity will walk you through the process of working with a project budget forecast in a construction project.

Story
Suppose that the ToadGreen project estimator wants to prepare a budget forecast to be able to compare and
analyze monthly budgets versus actual costs broken down by period. Because some work on interior lighting will
be performed for the project in September and October of 2023, the project estimator wants to distribute the total
lighting budget across the periods when this work is going to be performed. Also suppose that the work performed
in October will cost an additional $5,000 that had not been planned in the project budget.
Acting as the project estimator, you will prepare a budget forecast for further review and analysis of budget
performance.
 Part 3: Project Budget Tracking | 77

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Account Groups (PM201000) form, the SUBCON account group has been created.
• On the Projects (PM301000) form, the ITALIAN project has been created with multiple project tasks, including
16 - ELECTRICAL. Also, on the Cost Budgets tab, the cost budget is defined for the line with the 16-510 cost
code and the SUBCON account group for this project.
• On the Vendors (AP303000) form, the HOMEDEP vendor has been added.

Process Overview
To track the changes in the project budget forecast, you will create the first revision of the budget forecast on the
Project Budget Forecast (PM209600) form. Then you will generate periods and distribute budget amounts across
these periods.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the company as the project estimator by using the wendell username and the 123 password.
2. Open the Enable/Disable Features (CS100000) form, and on the form toolbar, click Modify.
3. In the Projects group of features, select the Budget Forecast check box.
4. On the form toolbar, click Enable.
5. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.

Step 1: Creating the First Revision of the Project Budget Forecast

Prepare a budget forecast by doing the following
1. On the Projects (PM301000) form, open the ITALIAN project.
2. On the More menu (under Budget Operations), click Project Budget Forecast. The system opens the
Project Budget Forecast (PM209600) form with the ITALIAN project selected in the Summary area.
3. In the Summary area, in the Revision box, type 1, and press Enter.
The system displays a list of project tasks in the table.
4. In the Description box, type 2023 Budget Forecast.
5. On the form toolbar, click Save to save the budget forecast revision, and click Generate Periods. The
system adds periods to each budget line, along with the Total and Delta lines.
6. Save the budget forecast.
7. In the Summary area, specify the following settings:
• Account Group: SUBCON
• Cost Code: 16-510
The system filters the budget lines and displays the only line that matches the selection criteria you have
specified.
8. Click the line with the 04-2023 period, and on the table toolbar, click Delete Row. Save your changes.
9. On the table toolbar, click Add Periods. The system opens the Add Periods dialog box.
 Part 3: Project Budget Tracking | 78

10.In the Period From box, specify 05-2023.

11.In the Period From box, specify and the Period To box, specify 06-2023.
12.Click OK. The system adds the line for the 05-2023 and 06-2023 period to the forecast.
13.Click Save on the form toolbar.

Step 2: Distributing Amounts Across the Periods

Distribute the budget amounts by doing the following:
1. While you are still viewing the project budget forecast on the Project Budget Forecast (PM209600) form, on
the form toolbar, click Generate Forecast.
2. In the Distribute dialog box, leave the default values, and click OK. The system distributes the amount so
that for the 05-2023 and 06-2023 periods, the Original Budgeted Amount is now 15,000.
3. Save the forecast.
4. In the Original Budgeted Amount and Revised Budgeted Amount columns, for the 05-2023 period, change
the specified values to 20000.00.
Notice that the Delta line has appeared in the table with the -5000 amount specified; the total in the
Original Budgeted Amount and Revised Budgeted Amount columns is now 35,000.00.
5. Save the forecast.
6. On the table toolbar, click Update Project Budget Line.
The Delta line has disappeared from the budget forecast, and the budget forecast should look as shown
in the following screenshot. The system has updated the cost budget of the ITALIAN project with the Total
value ($35,000) for this line.

Figure: Budget forecast for the Lighting - Interior line

7. Save the forecast.

8. On the Projects (PM301000) form, open the ITALIAN project. On the Cost Budget tab, notice that in the line
with the 16-510 cost code and the SUBCON account group, the value in the Original Budgeted Amount and
Revised Budgeted Amount boxes has been updated and is now 35,000.00.

You have prepared a forecast revision and updated the project budget with the forecasted values.
 Part 3: Project Budget Tracking | 79

Lesson 12: Tracking Budget Overruns

In Acumatica ERP Construction Edition, you can set up budget control for construction projects to make the system
display warnings if the project budget is close to being exceeded. The overbudget warnings are displayed for
subcontracts, purchase orders, change orders to commitments, and AP bills.

Learning Objectives
In this chapter, you will learn the following:
• How to configure budget control for a project to track documents that exceed the budget
• How to limit the cost codes to the ones that are specified in the project budget

Project Budget: Budget Control on Document Entry

The following sections explain how you can control documents that are entered for the project.

Control of Document Consistency for the Project

To ensure that document lines are entered for the appropriate budget lines, the system controls the cost code
entry in these documents by doing the following in the Cost Code column of the document entry form for each
document line:
• When a user clicks the magnifier icon in this column, in the pop-up window that opens, the system displays
only the cost codes that exist in the project budget for the specified combination of the selected project task
and the selected account group.
• If a user enters into the column a cost code that does not exist in the project budget for the specified
combination of the selected project task and the selected account group, a warning is displayed.

Control of Document Entry

The project budget can be exceeded as users enter documents. The system checks whether an entered document
is within the cost budget of the project, taking into consideration the portion of the budget that has already been
consumed if Show a Warning is selected in the Budget Control box on the General tab (General Settings section)
of the Projects Preferences (PM101000) form. This helps you to control the documents you are creating and can be
useful for a person who approves these documents.
When you enter or process one of the following documents related to a project, you will see a warning if the
amount of a document line exceeds the cost budget of the corresponding project budget line (even if the project
budget has no corresponding budget line):
• A purchase order of the Normal or Drop-Ship type on the Purchase Orders (PO301000) form.
For a document of the On Hold or Pending Approval status, you can see a warning in the Ext. Cost column on
the Details tab for the lines that exceed the project budget. The warning is also shown in the Summary area.
• An AP bill on the Bills and Adjustments (AP301000) form.
For a document of the On Hold, Pending Approval, or Balanced status, you can see a warning in the Ext. Cost
column on the Details tab for the lines that exceed the project budget. The warning is also shown in the
Summary area.
• A change order on the Change Orders (PM308000) form.
 Part 3: Project Budget Tracking | 80

For a document of the On Hold or Pending Approval status, you can see a warning in the Amount column
on the Commitment tab for the lines that exceed the project budget. The warning is also shown in the
Summary area.
The warning message in a document line shows you how much the line amount exceeds the budget. The system
compares the document line with the corresponding cost budget line of the project and shows you the following
amounts in the warning:
• Available: The amount of the budget that you can consume with the document.
The available amount is calculated as the difference between the Budgeted amount and the Consumed
amount. The budgeted amount is the revised budgeted amount of the budget line. The consumed amount
is the amount that has been spent already—that is, the sum of the actual amount and the committed open
amount of the budget line.
• Remaining: The amount that exceeds the budget.
The remaining amount is calculated as the difference between the Available and Document amounts. The
document amount is the total amount (the Ext. Cost minus the Discount Amount) of all the lines of the
validated document that correspond to the same budget line, including the current one.
For example, suppose that you have budgeted the cost of $400 for the project (the budgeted amount). You have
already spent $150 (the consumed amount). When you create for the project an AP bill for the amount of $300 (the
document amount), the system will display the following warning:
Budgeted: 400.00, Consumed: 150.00, Available: 250.00, Document: 300.00, Remaining: –50.00
The warning does not prevent you from processing the document but just informs you that the document
processing will result in an excess of the budgeted values.
You can see the list of all document lines that have exceeded the budget of a selected project on the Project Budget
Overruns (PM404000) form.

Construction Project Budget: To Track Project Budget Overrun

The following activity will walk you through the process of tracking the budget overrun for a project.

Story
Suppose that ToadGreen Building Group is a general contractor building an Italian restaurant for its customer,
Italian Company. The ToadGreen project manager has created a project for the work to be performed, and the
budget has been agreed on with the customer. On February 15, 2023, the purchasing agent has negotiated a
subcontract for mechanical piping with the Harmon Installation subcontractor at a better price than was initially
planned, thus reserving some budget. The subcontractor has started working, and on February 25, 2023, it notified
the project manager that an extra 20 hours is necessary to complete the work.
Acting as a project manager, you need to enter all the related documents and review the budget overruns.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Projects (PM301000) form, the ITALIAN project has been defined. On the Cost Budget tab, the cost
budget lines have been added. Cost budget lines related to 15 – Mechanical Piping project task have no
budget changes or open commitments, and the actual amount for the lines is 0. Also, the Change Order
Workflow check box is selected on the Summary tab.
• On the Vendors (AP303000) form, the HARMINT (Harmon Installation) vendor has been defined.
• On the Change Order Classes (PM203000) form, the DEFAULT change order class has been created and
specified as the default change order class on the Projects Preferences (PM101000) form.
 Part 3: Project Budget Tracking | 81

Process Overview
You will enter a subcontract related to a project on the Subcontracts (SC301000) form. Then you will create the
change order for this subcontract on the Change Orders (PM308000) form. Aer that, you will create an accounts
payable bill on the Bills and Adjustments (AP301000) form. Finally, on the Project Budget Overruns (PM404000) form,
you will review the documents that have exceeded the project budget.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a construction project manager by using the ewatson username and the 123
password.
2. On the Projects Preferences (PM101000) form, in the General Settings section of the General tab, specify
Show a Warning in the Budget Control box.
3. Save your changes.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 2/15/2023. If a different date is displayed, click the Business Date menu
button, and select 2/15/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Recording a Vendor Commitment

To record the commitment to the project, do the following:
1. On the Subcontracts (SC301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Vendor: HARMINT
• Description: Mechanical piping
• Date: 2/15/2023
3. On the Details tab, add two lines to the table as follows:
a. Add the first line, and specify the following settings:
• Inventory ID: LABOR
• Project: ITALIAN
• Project Task: 15
• Cost Code: 15-100
• Line Description: Mechanical piping work
• UOM: HOUR
• Order Qty.: 100
• Unit Cost: 145
b. Add the second line, and specify the following settings:
• Inventory ID: PROJMATERIAL
• Project: ITALIAN
• Project Task: 15
• Cost Code: 15-100
• Line Description: Mechanical piping materials
• UOM: EA
 Part 3: Project Budget Tracking | 82

• Order Qty: 1
• Unit Cost: 17000
4. On the form toolbar, click Remove Hold. The system saves the subcontract and assigns it the Open status.
Make sure that the subcontract total is $31,500.
5. On the Projects (PM301000) form, open the ITALIAN project, and on the Cost Budget tab, make sure of the
following:
• In the line with the 15 project task, the 15–100 cost code, and LABOR account group, the Original
Committed Amount is now 14,500.
• In the line with the 15 project task, the 15–100 cost code, and the MATERIAL account group, the Original
Committed Amount is now 17,000.

Step 2: Recording the Extra Work

To process the extra work needed for the project, create and process a change order by doing the following:
1. While you are still viewing the ITALIAN project on the Projects (PM301000) form, on the More menu (under
Change Management), click Create Change Order. The system creates a change order for the project and
opens it on the Change Orders (PM308000) form.
2. In the Summary area, specify the following settings:
• Class: DEFAULT (inserted automatically)
• Project: ITALIAN (inserted automatically)
• Change Date: 2/25/2023
• Approval Date: 2/25/2023
• Description: Extra work on piping
3. On the table toolbar of the Commitments tab, click Select Commitments, and in the Select Commitments
dialog box, select the unlabeled check box for the line with the following settings:
• Project Task: 15
• Cost Code: 15-100
• Inventory ID: LABOR
4. Click Add Lines & Close to add the selected line to the change order and close the dialog box.
5. In the line that has appeared on the Commitments tab, set Quantity to 20.
Because you have only $500 of the budget available and the change amount exceeds the available budget
by $2,400, the overbudget warning is displayed, as shown in the following screenshot. The Consumed
amount in the warning indicates the total of open commitments and already-processed actual amounts for
the project.
 Part 3: Project Budget Tracking | 83

Figure: A warning indicating a budget overrun

6. Save the change order, which has the On Hold status.

Step 3: Creating a Vendor Bill

Enter an AP bill for the subcontract as follows:
1. On the Bills and Adjustments (AP301000) form, create a new document, and specify the following settings in
the Summary area:
• Type: Bill
• Vendor: HARMINT
• Date: 2/15/2023
• Description: Mechanical piping work
2. On the Details tab, add a new row with the following settings:
• Inventory ID: LABOR
• Quantity: 10
• UOM: HOUR
• Unit Cost: 100
• Project: ITALIAN
• Project Task: 15
• Cost Code: 15-100
3. Save the bill, which has the On Hold status, and review the overbudget warning displayed in the Ext. Cost
column. The amount to be paid by the bill exceeds the budget by $500.

Step 4: Viewing Documents Exceeding the Project Budget

To view all documents that exceed the budgeted amounts, do the following:
1. Open the Project Budget Overruns (PM404000) form.
2. In the Selection area, specify the following values:
 Part 3: Project Budget Tracking | 84

• Project: ITALIAN
• From: 2/1/2023
• To: 2/28/2023
3. On the form toolbar, click Calculate. The system shows the list of documents, along with the document
amounts and the amounts that exceed the budgeted amounts. Notice that the subcontract that you have
processed does not exceed the budgeted amounts, and thus is not shown in the table.

Figure: List of documents that exceed the budgeted amounts

4. On the Projects Preferences (PM101000) form, in the General Settings section of the General tab, select Do
Not Control in the Budget Control box, and save your changes.

You have entered the documents for the project and reviewed the budget overruns.

Construction Project Budget: To Add a New Cost Code to the Project Budget

The following activity will walk you through the processing of a subcontract with a cost code that had not been
initially specified in the project.

Story
Suppose that ToadGreen is a general contractor building an Italian restaurant for its customer, The Italian
Company. On February 15, 2023, the purchasing manager negotiated a subcontract for construction labor with the
Harmon Installation subcontractor. This subcontract had not been budgeted initially in the project.
Acting as a ToadGreen project manager, you need to enter a subcontract, record these expenses to a new cost code
in the project budget, and make sure that the project cost budget is updated.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Projects (PM301000) form, the ITALIAN project has been defined. On the Cost Budget tab, the cost
budget lines have been added along with the appropriate cost codes. On the Summary tab, the Allow
Adding New Items on the Fly check box is selected.
• On the Account Groups (PM201000) form, the SUBCON account group has been created.
• On the Non-Stock Items (IN202000) form, the SUBCONTR item has been created. The expense account of the
item is mapped to the SUBCON account group.
 Part 3: Project Budget Tracking | 85

Process Overview
You will enter a subcontract related to a project on the Subcontracts (SC301000) form, and add a to the subcontract
with the new cost code. Then you will release the subcontract and make sure that the project budget is updated.

Step 1: Entering a Subcontract

To enter a subcontract, do the following:
1. On the Subcontracts (SC301000) form, create a new subcontract.
2. In the Summary area of the form, in the Vendor box, select HARMINT, and in the Description box, type
Construction labor.
3. On the Details tab, add a new line with the following settings:
• Inventory ID: LABOR
• Project: ITALIAN
• Project Task: 15
4. In the Cost Code column, click the magnifier icon to open the lookup box. On the Project Codes tab of the
lookup box, the system displays the list of cost codes that are used in the project budget lines that have the
specified account group and project task.
5. Open the All Records tab, and click the 01–300 cost code.
6. On the table toolbar, click Select. The system closes the lookup box and inserts the cost code in the line. The
warning next to the Cost Code column of this line indicates that the entered cost code does not exist in the
project budget.
7. In the Ext. Cost column of the line, type 1200.
8. On the form toolbar, click Remove Hold. The system saves the subcontract with the Open status.
9. On the Projects (PM301000) form, open the ITALIAN project, and review the Cost Budget tab. Notice that the
new cost budget line for the 15 project task with the 01-300 cost code has been added, and 1200 is shown
in the Original Committed Amount column, as shown in the following screenshot. In the added line, the
LABOR account group is specified because this group includes the expense account of the inventory item
specified in the subcontract line.

You have processed a subcontract and added a line with a new cost code to the cost budget.
 Part 3: Project Budget Tracking | 86

Lesson 13: Preparing Cost Projections

Project Cost Projections: General Information

You can estimate the final costs and remaining costs of a project at a particular stage by using cost projections.

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure a cost projection class
• Create a cost projection for a project
• Create a new revision of a cost projection
• Estimate the costs of a project at a different level of detail
• Review the projected costs in a project budget

Applicable Scenarios
You create a cost projection revision to compare the calculated costs with the initially estimated costs in the cost
budget of a project, and thus to detect parts of the project that may be over the budget.

Budget Detail Level of Cost Projections

A cost projection revision created for a project has a certain budget detail level, which is determined by the cost
projection class specified in this cost projection.
You create a cost projection class on the Cost Projection Classes (PM203500) form. For the class, you specify the
entities that are included in the budget level of detail by selecting or clearing the check boxes in the Cost Task,
Account Group, Cost Code, and Inventory ID boxes.
A cost projection revision prepared for a particular project must have a cost projection class that provides the same
budget detail level as that of the project—which is specified in the Cost Budget Level box on the Summary tab
of the Projects (PM301000) form—or it can be less detailed. For instance, if the project has the Task and Cost Code
cost budget level, the cost projection classes with the following level of detail will be applicable: cost task only, cost
code only, or both cost task and cost code. A cost projection class with more detailed budget level (such as cost
task, cost code, and account group) will not be applicable for this project.

Creation of a Cost Projection Revision

You create and process revisions of cost projections on the Cost Projections (PM305000) form. A newly created cost
projection revision has the On Hold status and can be edited. You can create as many revisions of a cost projection
as are needed for a project.

You can create a new revision of a cost projection based on the previous revision by clicking Copy
Revision on the form toolbar.

In a new cost projection revision, you specify the cost projection class, the revision ID, and the project for which you
need to estimate the costs. Then on the table toolbar of the Details tab, you click Select Budget Lines on the table
toolbar. In the Select Budget Lines dialog box, which opens, you select the Included check box in the rows of the
 Part 3: Project Budget Tracking | 87

cost budget lines of the project for which you need to estimate costs. Then you click Add Lines and close the dialog
box. The selected cost budget lines are added to the cost projection revision on the Details tab.
For each line, the projected values are calculated by using the following formulas:
• Projected Cost to Complete = Budgeted Cost - (Actual + Unbilled Committed
Cost)
• Projected Cost at Completion = Projected Cost to Complete + (Actual +
Unbilled Committed Cost)
• Projected Quantity to Complete = Budgeted Quantity - (Actual + Unbilled
Committed Quantity)
• Projected Quantity at Completion = Projected Quantity to Complete +
(Actual + Unbilled Committed Quantity)
• Projected Completed (%) = (Budgeted Cost - Projected Cost to Complete) /
Budgeted Cost * 100%
You can change the projected values in the cost projection revision to see how this affects the cost budget. To
change these values, for each cost projection revision line, in the Mode column, you select a data entry mode,
which defines how the projected values in the line are recalculated:
• Auto: You manually modify one of the projected values in the row; the other values are recalculated
automatically.
• Manual Quantity: You manually modify one of the projected values; the other values are recalculated
automatically, except for the Projected Quantity to Complete and Projected Quantity at Completion
values, which are preserved.
• Manual Cost: You manually modify one of the projected values; the other values are recalculated
automatically, except for the Projected Cost to Complete and Projected Cost at Completion values, which
are preserved.
• Manual: You manually modify one of the projected values; the system does not recalculate other projected
values.
When a cost projection revision has been prepared, you click Remove Hold and then Release on the form toolbar
of the Cost Projections form. The system releases the cost projection revision and assigns it the Released status.
The projected values in the project are copied from the latest released revision of the cost projection to the
corresponding cost budget lines of the specified project on the Projects form.

Project Cost Projections: To Create a Cost Projection Class

This activity will walk you through the process of creating a cost projection class.

Story
Suppose that you are the construction project manager of the ToadGreen Building Group company, and you need
to create a cost projection class to be used for estimating the costs of a project. The cost projection class must
provide the ability to estimate the costs at the task, item, and account group level of detail.

Configuration Overview
For the purposes of this activity, the Construction feature has been enabled on the Enable/Disable Features
(CS100000) form.

Process Overview
You will create a cost projection class on the Cost Projection Classes (PM203500) form.
 Part 3: Project Budget Tracking | 88

Step: Creating a Cost Projection Class

To define a cost projection class that will be used for creating cost projections, perform the following instructions:
1. On the Cost Projection Classes (PM203500) form, add a new row, and specify the following settings:
• Class ID: TAGI
• Description: Cost projection by task, account group, and inventory item
• Active: Selected
• Cost Task: Selected
• Account Group: Selected
• Inventory ID: Selected
2. Save the cost projection class you have created.

You have defined a cost projection class that can be used for creating cost projections and estimating the costs of a
project.

Project Cost Projections: Process Activity

This activity will walk you through the process of estimating the planned costs of a project that is in progress.

Story
Suppose that the ToadGreen company is building an Italian restaurant for the Italian Company, its customer, and
is in the middle of the lifecycle of the construction project. The project manager analyzes the current project state
and notices the following:
• For the purchases of concrete and on-site work for the project, $6,200 has to be spent; aer that, the work
will be finished, and the corresponding project tasks will be considered as completed.
• For the masonry work, $26,650 has to be spent to complete the on-site work. The project manager wants to
know the exact details of the costs to be incurred for the completion of the task.
In response to the project manager's request the ToadGreen project estimator needs to analyze the current state
of the project and estimate how the planned expenses will affect the project budget. Then the project estimator
should prepare a construction bonding report with the projected amounts related to masonry work.
Acting as the project estimator, you will prepare a cost projection revision for the project.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction feature has been enabled.
• On the Projects (PM301000) form, the ITALIAN2 project has been created with the 03 and 04 project tasks
in the cost budget of the project. The Task and Cost Code option is specified in the Cost Budget Level box
on the Summary tab for the project. The cost budget has been defined. including the lines with the 03-100,
03-200, 03-300, 03-350, 04-220, and 04-700 cost codes.
• On the Cost Projection Classes (PM203500) form, the TC and TAC cost projection classes have been
configured. The TC cost projection class provides cost projection at the task level of detail (that is, in a cost
projection revision, the budget lines with the same task are consolidated). The TAC cost projection class
provides the same level of detail as the cost project budget of the ITALIAN2 project.
 Part 3: Project Budget Tracking | 89

Process Overview
In this activity, you will create a cost projection revision on the Cost Projections (PM305000) form and add budget
lines to the projection. Then you will select the calculation mode, update the projected values, and review how
this update affects the budgeted values. Finally you will release the cost projection revision and prepare the
construction bonding report for the project, which will include the projected values, on the Construction Bonding
Report (PM650500) form.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as the project estimator by using the wendell username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 3/25/2023. If a different date is displayed, click the Business Date menu
button, and select 3/25/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Creating a Cost Projection Revision

To create the first cost projection revision for the ITALIAN2 project, do the following:
1. On the Projects (PM301000) form, open the ITALIAN2 project, and on the More menu (under Budget
Operations), click Cost Projection. The system opens the Cost Projections (PM305000) form with the project
selected in the Summary area.
2. In the Summary area, specify the following settings:
• Revision: 1
• Cost Projection Class: TC
A cost projection class selected for the project must provide the same budget detail level as that of the
project, or it can be less detailed. The selected cost projection class has a less detailed budget level than
the project budget, so you can estimate values summed by tasks.
• Description: Estimating (concrete materials and on-site work)

Step 2: Adding Budget Lines

To add the budget lines to be estimated, while you are still viewing the Cost Projections (PM305000) form with the
ITALIAN2 project selected, do the following:
1. On the table toolbar of the Details tab, click Add Budget Lines.
2. In the Add Budget Lines dialog box, which opens, select the unlabeled check boxes in the lines with the 03
and 04 project tasks, and click Add Lines & Close. The system adds the budget lines to the cost projection
revision.
3. In the Description column of the line with the 03 cost task, type Concrete. This is the consolidated line
to which the system grouped all cost budget lines with the 03-100, 03-200, 03-300, and 03-350 cost codes
because you have selected the cost projection class with the cost task level of details for the cost projection
revision.
4. In the Description column of the line with the 04 cost task, type Masonry. This is the consolidated line to
which the system grouped all cost budget lines with the 04-220 and 04-700 cost codes. Review the amounts
in the lines and notice the following:
• In the Budgeted Cost column, the budgeted cost is 113,990 for the Concrete line, and 71,250 for the
Masonry line. The same values are shown in the Projected Cost at Completion column.
 Part 3: Project Budget Tracking | 90

• In the Actual + Committed Open Cost column, the actual cost is 106,517 for the Concrete line, and 45,000
for the Masonry line. These values are the sum of the actual amounts and committed open amounts for
the corresponding budget lines.
• The Cost to Complete values are 7,473 for the Concrete line, and 26,250 for the Masonry line. These
values are the costs that would be required to complete the project tasks as initially have been budgeted
for the project. The Projected Cost to Complete column shows the same values.
5. In the Projected Cost to Complete column, specify 6,200 in the Concrete line, and 26,650 in the Masonry
line. These values are the planned amounts needed for the completion of the work related to the cost task
in the line. The system recalculates the values in the Projected Cost at Completion column, as shown in the
following screenshot.
In the Summary area, the total budgeted and projected costs are shown. Although a small budget overrun is
expected for the masonry work, the total projected costs are still within the initially budgeted costs because
the Total Cost at Completion in the Projected section does not exceed the Total Cost at Completion in the
Budgeted section (also shown in the following screenshot).

Figure: The prepared cost projection revision

6. Save the cost projection revision.

The cost projection revision that you have created cannot be released because its level of detail does not fit
the budget level of detail of the project. So aer you have performed the initial analysis, you will create a cost
projection revision with the same budget detail level as that of the project.

Step 3: Creating the Next Cost Projection Revision

In this step, you will create the second cost projection revision and release it. You will then prepare a construction
bonding report with the projected amounts. Do the following:
1. While you are still viewing the cost projection revision on the Cost Projections (PM305000) form, on the form
toolbar, click Add New Record.
2. In the Summary area, specify the following settings:
• Revision: 2
• Cost Projection Class: TAC
This cost projection class has the same level of detail as the project budget (cost task, account group,
and cost code), so you can release this cost projection revision and see the projected costs directly in the
project budget.
• Description: Estimating (masonry)
3. On the table toolbar of the Details tab, click Add Budget Lines.
4. In the Add Budget Lines dialog box, which opens, select the unlabeled check boxes in all the lines with
the 04 project task, and click Add Lines & Close. The system adds four budget lines to the cost projection
revision.
 Part 3: Project Budget Tracking | 91

5. Update the values in the Projected Cost to Complete column as follows:

• In the row with the LABOR account group and the Masonry- Block description, enter 11,500.
• In the row with the MATERIAL account group and the Masonry- Block description, enter 6420.
• In the row with the LABOR account group and the Masonry- Composite Wall description, enter 4860.
• In the row with the MATERIAL account group and the Masonry- Composite Wall description, enter 3870.
6. In the Summary area, make sure Total Cost to Complete in the Projected section is 26,650 (as it was in the
previous cost projection revision), and notice that the Total Cost at Completion in this section is greater
than the initially budgeted amount in the Budgeted section.
7. On the form toolbar, click Remove Hold, and then click Release. The system assigns the cost projection the
Released status.
8. On the Construction Bonding Report (PM650500) report form, specify the following settings:
• As of Date: 4/1/2023
• Project: ITALIAN2
• Use Cost Projections: Selected
9. On the report form toolbar, click Run Report; review the generated report. Notice that the Cost To
Complete and Cost At Complete columns show the projected values from the cost projection revision that
you have released.

You have finished working with the cost projection for the project.
 Part 4: Two-Tier Change Management | 92

Part 4: Two-Tier Change Management

Change Management: General Information

Acumatica ERP provides the two-tier change management capability for projects, which is used to create change
requests in addition to change orders. Change requests are detailed breakdowns of potential changes to the project
budget and commitments, such as additions, deletions, or edits to the existing cost or revenue budget. In the first
tier, you create change requests, and the second tier involves you grouping multiple change requests into a single
change order to be approved.
With the two-tier change management, you can also set up price markups that can be applied to an individual line
of a change request and to the total amount of the document to charge the customer for the changes.

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure a change order class that supports the two-tier change management
• Configure default markups
• Create a change request to update the project budget
• Create a change order based on the change request
• Process a change request with a cost change order
• Process a change request with a revenue change order
• Cancel a change request
• Close a change request

Applicable Scenarios
You turn on the change order workflow for a project to be able to track changes to the budgeted and committed
values of the project. You create change requests if the workflow of your project supposes a lot of small changes
to the budget but you do not want to create a lot of change orders, for example, because of the approval required
for each change order. With change requests, you can collect a lot of small changes into a single or several change
orders.
You can also need to create change requests for a project if you want to charge the customer for the changes made
to the project budget.

Configuration of Change Order Classes

A change order class defines which project data—the revenue budget, the cost budget, or commitments—can be
adjusted with a change order of this class. The two-tier change management is controlled at the level of a change
order class. If the Two-Tier Change Management check box is selected for a particular class on the Change Order
Classes (PM203000) form, change orders of the selected class support two-tier change management and can
include change requests.
If a change order class has the Revenue Budget check box cleared and the Cost Budget and Commitments check
box selected on the Details tab of the Change Order Classes form, change orders of this class are classified as cost
change orders for change requests.
If a change order class has the Revenue Budget, Cost Budget, and Commitments check box selected on the
Details tab of the Change Order Classes form, change orders of this class are treated as revenue change orders.
 Part 4: Two-Tier Change Management | 93

Creation of Change Requests

To make it possible for users to track changes for a particular project by using change requests along with change
orders, you select the Change Order Workflow check box on the Summary tab of the Projects (PM301000) form for
the project. Then you can create a change request for the project on the Projects form by clicking Create Change
Request on the form toolbar. The system creates a change request with the On Hold status and the project selected
and opens it on the Change Requests (PM308500) form.

In addition to creating a change request from the Projects form for the selected project, you can create
a new change request directly on the Change Requests form and select the needed project.

In a change request with the On Hold status, on the Estimation tab of the Change Requests form, you add rows
with potential changes that will affect the revenue budget and the cost budget of the selected project when the
related change orders are released. For each estimation line, you specify the following settings:
• The Project Task, Account Group, and Inventory ID that represent the cost budget line to be updated or
created if this combination of settings does not exist in the project budget
• The Revenue Task and Revenue Account Group that represent the revenue budget line to be updated or
created if this combination of settings does not exist in the project budget
• The Quantity, Unit Cost, Unit Price, and UOM that estimate the change to the budget
• Optionally, the Create Commitment and Vendor if you want to create a commitment line based on this
estimation line
The amount in the Ext. Cost column estimates the change of the cost and calculated as follows:
Ext. Cost = Quantity * Unit Cost
The amount in the Line Amount column estimates the change of the revenue and calculated as follows:
Line Amount = Ext. Price + Ext. Price * Line Markup (%) / 100
Ext. Price = Quantity * Unit Price
Unit Price = Unit Price + Unit Price * Price Markup (%) / 100
Once you have saved a change request with the Open status, the Quantity and Ext. Cost values of each estimation
line increase the Potential CO Quantity and Potential CO Amount of the corresponding cost budget line of the
project on the Projects form. The Quantity and Line Amount values of each estimation line increase the Potential
CO Quantity and Potential CO Amount of the corresponding revenue budget line of the project.

Adding of a Change Request to a Change Order

On the Change Requests (PM308500) form, you can create a change order for the selected change request by
clicking the Create Change Order button on the form toolbar. On the Change Orders (PM308000) form, you can
also add one or several change requests to the selected change order by clicking Select Change Requests on the
table toolbar of the Change Requests tab.
Based on each estimation line of the change request added to a change order and on the selected change order
class, the system creates the following lines for the change order on the Change Orders form:
• A cost budget line on the Cost Budget tab with Quantity and Amount values equal to the quantity and
extended cost of the estimation line
• A revenue budget line on the Revenue Budget tab with Quantity and Amount values equal to the quantity
and line amount of the estimation line
• A commitment line on the Commitments tab with Quantity and Amount values equal to the quantity and
extended cost of the estimation line if the estimation line has Create Commitment check box selected on
the Change Requests form
 Part 4: Two-Tier Change Management | 94

• A markup revenue budget line on the Revenue Budget tab with the Amount value equal to the markup
amount of this markup line. The system creates a separate line for the markup amount if the change request
has a markup line with the project task and account group on the Markups tab of the Change Requests
form but has no estimation line with the same revenue task and revenue account group on the Estimation
tab. Otherwise, the markup amount is added to the existing revenue budget line created based on the
estimation line.
Most commonly, a change request relates to a change order that contains both cost estimation lines and revenue
estimation lines. Once you have added the change request to the change order, the change request is assigned
the Closed status. However, in some cases you may need to process and release the cost change order as early as
necessary to create commitments and change the project cost budget accordingly, while the revenue change order
may require customer approval and needs to be processed separately.
If the project cost budget and commitments affected by a change request need to be updated through a separate
change order before the revenue part has been approved, for one change request you process a cost change order
and a revenue change order.
A cost change order is a change order that contains only the cost and commitment parts of the change request
based on the settings of the selected change order class. This change order created for a change request is shown
in the Cost Change Order Nbr. box in the Summary area of the Change Requests form.
A revenue change order is a change order that contains the revenue part of the change request as well as all types
of estimation lines—that is, revenue budget, cost budget, and commitment lines. This change order created for a
change request is shown in the Change Order Nbr. box in the Summary area of the Change Requests form.
When both the cost part and revenue part of the change request have been linked to change orders, the system
assigns the Closed status to the change request. If the customer has not approved the revenue part of the change
request, you do not need to create a revenue change order and can manually close the change request for which
the cost change order has been created. To do this, you click Close on the form toolbar of the Change Requests
form to assign the change request the Closed status.

You can also cancel a change request by clicking Cancel on the form toolbar of the Change Requests
form to indicate that the changes will not be processed further. This will assign the change request
the Canceled status and decreases the potential CO values in the project budget.

For information on further processing of change orders, see Single-Tier Change Management: General Information.

Workflow of Processing a Change Request

The following diagram illustrates the workflow of processing a change request.
 Part 4: Two-Tier Change Management | 95

Lesson 14: Configuring Two-Tier Change Management

Change Requests: Configuration of Markups

You can configure markups to charge the customer with each created change request. The following types of
markup can be applied to a change request on the Change Requests (PM308500) form:
• Line-level markups: These markups apply to an individual estimation line on the Estimation tab and affects
the Line Amount value. This type includes the Price Markup (%) and Line Markup (%).
• Document-level markups: These markups apply to the total line amount of the change request on the
Markups tab.
 Part 4: Two-Tier Change Management | 96

You can define one or several markups of this type for the change request as well as define no markups. A
document-level markup is applied to a change request only if all the key attributes of a project budget line—
project task, account group, and optionally inventory item—are defined for the markup on the Markups tab.
You can override all markups and delete document-level markups at the change request level.

Line-Level Markups
A price markup is an item-specific markup. When you select an inventory item in an estimation line on the
Estimation tab of the Change Requests (PM308500) form, the markup percent specified for the item is retrieved as
the Price Markup (%) value. You can specify the price markup for the item on the Price/Cost tab of the Stock Items
(IN202500) form or on the Price/Cost tab of the Non-Stock Items (IN202000) form. If no price markup is specified
for the item, the system uses the default price markup specified in the Default Price Markup, % box (Markup
section) on the General tab of the Projects Preferences (PM101000) form. If no default price markup is specified in
the project accounting preferences, the price markup of the estimation line is zero.
A line markup is defined at the account group level. When you select an account group in an estimation line in the
Account Group column on the Estimation tab of the Change Requests form, the default markup specified for the
account group is retrieved as the Line Markup (%) value. You can specify the default line markup for the account
group on the Settings tab of the Account Groups (PM201000) form. If no default markup is specified in the account
group, the line markup of the estimation line is zero.
The line amount of an estimation line considers the line-level markups and is calculated as follows:
Unit Price = Unit Price + Unit Price * Price Markup (%) / 100
Ext. Price = Quantity * Unit Price
Line Amount = Ext. Price + Ext. Price * Line Markup (%) / 100

Document-Level Markups
A document-level markup applies to the total line amount of a change request. On the Markups tab of the Change
Requests (PM308500) form, for a change request, you can define any number of document-level markups of the
following types as well as define no markups:
• %: A markup whose amount is calculated as follows:
Markup Amount = Line Total * % Markup Value / 100
You can define as many markups of this type as necessary.
• Cumulative %: A markup whose amount is calculated as follows:
Markup Amount = (all the previously applied % markups) * Cumulative % Value /
100
A markup of this type requires at least one markup of the % type.
• Flat Fee: A markup whose amount is specified manually to be added to the total markup.
You can define as many markups of this type as necessary.
A document-level markup is applied to a change request only if all the project budget key attributes—project task,
account group, and optionally inventory item—are defined for the markup on the Markups tab of the Change
Requests form.

A change request inherits document-level markup from the project that you can define on the Defaults tab
(Document Markups table) of the Projects (PM301000) form. The project inherits document markups from the
General tab (Markup section) of the Projects Preferences (PM101000) form.
 Part 4: Two-Tier Change Management | 97

Change Requests: Implementation Activity

The following implementation activity will walk you through the process of configuring two-tier change
management for projects.

Story
Suppose that you, as the system administrator, need to configure two-tier change management so that the change
requests to projects can be processed in the system. Also, you need to configure the following price markups to be
applied to the new projects:
• A default price markup of 25% to be applied to each individual change made with a change request
• 8% of the profit to be applied to an entire change request
• 4% of overhead to be applied to an entire change request
• 5% of all the previously charged markups to be applied to an entire change request
• A flat fee of $100 per change request
You also need to specify price markups for the ITALIAN project, which has already been created in the system. Acting
as the system administrator, you will perform these tasks.

Process Overview
You will enable the Change Requests feature on the Enable/Disable Features (CS100000) form. You will then
configure the default price markups on the Projects Preferences (PM101000) form. You will also create change order
classes that support two-tier change management on the Change Order Classes (PM203000) form.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Sign in to the system as a system administrator by using the gibbs username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date.
3. Open the Enable/Disable Features (CS100000) form, and on the form toolbar, click Modify.
4. In the Projects group of features, select the Change Requests check box.
5. On the form toolbar, click Enable.

Step 1: Configuring the Default Markups

To specify the default markups that the system will assign to change requests, do the following:
1. In the Markups section on the General tab on the Projects Preferences (PM101000) form, enter 25 in the
Default Price Markup, % box.
2. In the Document Markups table, add rows with the following settings.

Type Description Value

% Profit 8

% Overhead 4
 Part 4: Two-Tier Change Management | 98

Type Description Value

Cumulative % Default cumulative % 5

Flat Fee Additional charges 100

The system will apply these document-level markups to the total amount of change requests by default.
3. Save your changes.

Step 2: Creating a Change Order Class for Cost Change Orders

To create a change order class for the change orders that affect only the project cost budget, do the following:
1. On the Change Order Classes (PM203000) form, add a new record.
2. In the Summary area, specify the following settings:
• Class ID: INTERNAL
• Description: Cost change orders
• Two-Tier Change Management: Selected
Because you have selected the Two-Tier Change Management check box, the Cost Budget and
Commitments check boxes are selected by default and cannot be cleared.
3. On the Details tab, clear the Revenue Budget check box.
4. Save the change order class.

Step 3: Creating a Change Order Class for Revenue Change Orders

To create a change order class for the change orders that affect the project revenue budget, while you are still
viewing the Change Order Classes (PM203000) form, do the following:
1. Click Add New Record on the form toolbar, and specify the following settings in the Summary area:
• Class ID: EXTERNAL
• Description: Cost and revenue change orders
• Two-Tier Change Management: Selected
Again, notice that on the Details tab, all of the check boxes are selected by default. The Cost Budget and
Commitments check boxes are unavailable to be cleared; you will leave the Revenue Budget check box
selected.
2. Save the change order class.
3. On the General tab of the Projects Preferences (PM101000) form, in the Default Change Order Class box,
select EXTERNAL, and then save your changes.

You have configured two-tier change management for project, and defined default project markups.

Lesson 15: Tracking Cost Changes to Projects

 Part 4: Two-Tier Change Management | 99

Change Management: To Process Cost-Only Changes to a Project

The following activity will walk you through the process of managing changes to the construction project by using
the two-tier change management workflow.

Story
Suppose that ToadGreen is a general contractor building an Italian restaurant for the Italian Company, its customer.
The ToadGreen project manager has created a project for the work to be performed, and the budget has been
agreed upon with the customer. The construction work has been started. Further suppose that on March, 21, 2023,
an on-site worker found out that the wet subfloor in the building needs to be dried, cleaned, and aired out, and this
worker has notified the project manager about this.
Aer reviewing the damages, the project manager has decided to hire a subcontractor, Acme Doors & Glass,
to perform this work. The subcontractor notifies the project manager that four working days are needed for
completing the cleaning. The customer for which the project is being performed did not approved the changes
because the damages were due to workers' fault.
Acting as the project manager, you need to reflect the additional work in the cost project budget and cancel the
changes in the revenue budget.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction and Change Orders features have been
enabled.
• On the Account Groups (PM201000) form, the REVENUE account group has been configured.
• On the Projects (PM301000) form, the ITALIAN project has been configured; the project tasks have been
created, along with the related cost and revenue budget.

Process Overview
You will create a change request on the Change Requests (PM308500) form. Aer that, you will create a change
order for this change request on the Change Orders (PM308000) form and add commitments to this change order.
Then you will make sure that the processed documents are correctly reflected in the cost budget of the project.
Finally, you will manually close the change request on the Change Requests form to indicate that revenue part does
not require processing.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a project manager by using the ewatson username and 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 3/21/2023. If a different date is displayed, click the Business Date menu
button, and select 3/21/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Creating a Change Request

Create the change request that records the planned work to be performed as follows:
 Part 4: Two-Tier Change Management | 100

1. On the Change Requests (PM308500) form, create a new change request, and specify the following settings
in the Summary area:
• Project: ITALIAN
• Change Date: 3/21/2023
• Contract Time Change, Days: 4
• Description: Work on wet subfloor
2. On the Detailed Description tab, type Wet subfloor needs to be dried, cleaned, and
aired out.
3. On the Estimation tab, add a line with the following settings:
• Project Task: 01
• Account Group: LABOR
• Cost Code: 01-900
• Quantity: 1
• UOM: EA
• Unit Cost: 1000
• Price Markup (%): 10
• Revenue Task: 01
• Revenue Code: 01-000
4. Add one more line with the following settings:
• Project Task: 03
• Account Group: SUBCON
• Cost Code: 03-350
• Quantity: 10
• UOM: HOUR
• Unit Cost: 38
• Price Markup (%): 10
• Revenue Task: 03
• Revenue Code: 03-000
• Vendor: SUNTECH
• Create Commitment: Selected
5. Make sure the Cost Total in the Summary area is 1380 and save the change request.
6. On the form toolbar, click Remove Hold, and save the change request, which has the Open status.

In production use, you can configure an approval map for change requests and specify it in the
CR Approval Map box on the Projects Preferences (PM101000) form, so that the responsible
person will need to approve the change request before it is assigned the Open status.

Step 2: Processing the Change Order

To create and process a change order, do the following:
1. On the Change Orders (PM308000) form, create a new record.
2. In the Class box, select INTERNAL. This is the class of change orders that is used for processing the cost part
of the changes.
3. In the Project box, select ITALIAN.
 Part 4: Two-Tier Change Management | 101

4. In the Description box in the Summary area, type Additional costs for the Italian
Restaurant.
5. On the Change Requests tab, click Select Change Requests.
6. In the Select Change Requests dialog box, which opens, select the unlabeled check box in the row of the
change request you created earlier (Work on wet subfloor), and then click Add Change Requests & Close.
The system adds the line with the change request to the table on the Change Requests tab and specifies
cost budget and commitment details on the Cost Budget tab and the Commitments tab, respectively. The
change request still has the Open status because the revenue part of this change request has not yet been
processed.
7. On the Cost Budget tab, make sure that the cost budget lines with the 01-900 and 03-350 cost codes have
been added.
8. On the Commitments tab, make sure that the potential commitment in the amount of 380 has been added
for the change order. The line has New Document in the Status column, which means that a new document
will be prepared when the change order is released.
9. In the Commitment Type column of the only line on the Commitments tab, change the type of the
commitment to be prepared to Subcontract.
10.On the form toolbar, click Remove Hold. The system saves the change order and assigns it the Open status.
11.On the form toolbar, click Release to release the change order.

Step 3: Reviewing the Project Budget

Make sure that the change order has updated the project budget by doing the following:
1. On the Projects (PM301000) form, open the ITALIAN project.
2. On the Cost Budget tab, review the amounts in the budget lines and notice that they have been moved from
the Potential CO Amount column to the Budgeted CO Amount column, and the system has also updated
the amounts in the Revised Budgeted Amount column.

Figure: Budgeted amounts updated aer the release of the change order

3. On the Revenue Budget tab, review the amounts in the budget lines with the 01-000 and 03-000, and notice
that the change request values are still included the potential values.
 Part 4: Two-Tier Change Management | 102

Step 4: Closing the Change Request

To clean up the potential values in the revenue budget of the project, while you are still reviewing the project on the
Projects (PM301000) form, do the following:

1. On the Change Requests tab, click the link in the Reference Nbr. column of the only row.
2. On the form toolbar of the Change Requests (PM308500) form, which opens in the pop-up window, click
Close. The system assigns the change request the Closed status.
3. Close the pop-up window and return to the ITALIAN project on the Projects form. Press Esc to refresh the
form.
4. On the Revenue Budget tab, review the amounts in the budget lines with the 01-000 and 03-000, and notice
that the potential values has been decreased to zero.

You have completed the processing of a change order and processed the cost part of the change request for the
project.

Lesson 16: Tracking Cost and Revenue Changes to Projects

Change Management: To Process Cost and Revenue Changes to a Project

The following activity will walk you through the processing of extra costs and revenues for the project by using the
two-tier change management workflow.

Story
Suppose that ToadGreen Building Group is a general contractor building an Italian restaurant for the Italian
Company customer. The ToadGreen project accountant has created a project for the work to be performed and the
budget has been agreed upon with the customer. The construction work has been started.
Then suppose that on April, 15, 2023, a worker of a subcontractor, Acme Doors & Glass, arrived at the construction
site to perform cleaning work. The worker found out that the French-style window specified in the plans does not
fit the framed opening and notified the ToadGreen project manager about this. The project manager has estimated
that five days will be needed to fix this issue, and this will cost $3,500. Also, the ToadGreen manager has decided to
add an extra markup in the amount of $1,450 for the work to be performed.
Acting as the project manager, you need to agree upon the cost budget with the engineer and the revenue budget
with the customer. For this purpose, you will prepare a change request with the related project issue, and then
process the cost change order along with the related commitments to make changes to the project cost budget.
Aer the work is finished in June, you will process the revenue change order to record the revenue.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction and Change Orders features have been
enabled.
• On the Account Groups (PM201000) form, the REVENUE account group has been configured.
• On the Projects (PM301000) form, the ITALIAN project has been configured. For the project, the Change
Order Workflow check box is selected on the Summary tab.
 Part 4: Two-Tier Change Management | 103

• On the Project Management Classes (PJ201000) form, the FIELD class has been created to provide the default
settings for project issues.

Process Overview
You will create a change request on the Change Requests (PM308500) form; also, you will create a project issue
to be linked to this request on the Project Issue (PJ302000) form. You will create a change order for the cost part
of the change request on theChange Orders (PM308000) form. Aer that you will create second change order for
the revenue part of the change request. Finally, you will make sure that the processed documents are correctly
reflected in the cost and revenue budgets of the project.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 4/15/2023. If a different date is displayed, click the Business Date menu
button, and select 4/15/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
2. Download the Window-Rough-Openings.jpg file to your device.

Step 1: Creating a Change Request with the Related Project Issue

Create a change request and a project issue by doing the following:
1. On the Change Requests (PM308500) form, add a new record.
2. In the Summary area, specify the following settings:
• Project: ITALIAN
• Change Date: 4/15/2023
• Contract Time Change, Days: 4
• Description: Issue with French-style window
3. Click the Edit button to the right of the Project Issue box.
4. On the Project Issue (PJ302000) form, which opens with the new project issue, specify the following settings:
• Summary: French Style Window doesn't fit in framed opening
• Project: ITALIAN
• Class ID: FIELD
• Owner: Ricky Thompson
• Schedule Impact: Selected
• Schedule Impact (days): 5
• Cost Impact: Selected
• Cost Impact: 3500
• Details (tab): The ACME DOORS & Glass on-site worker reported that the French-
style window specified on the plans does not fit in framed opening.
5. Click Save & Close on the form toolbar to return to the change request on the Change Requests form.
Make sure that the reference number of the created project issue is shown in the Project Issue box in the
Summary area of the form.
6. On the Detailed Description tab, type: The ACME DOORS & Glass on-site worker reported
that the French-style window specified on the plans does not fit in framed
 Part 4: Two-Tier Change Management | 104

opening. This needs to be addressed with the engineer, architect, and

subcontractors.
7. Save the change request.
8. Click Files on the form title bar. The Files dialog box opens.
9. Click Browse, navigate to the Window-Rough-Openings.jpg file (which is provided with the training
materials), and select this file.
10.Click Upload, and close the Files window. On the form title bar, notice that Files (1) indicates that the image
has been attached to the change request.
11.On the Estimation tab, enter a line with the following settings:
• Project Task: 08
• Account Group: SUBCON
• Cost Code: 08-100
• Inventory ID: SUBCONTR
• Quantity: 20
• UOM: EA
• Unit Cost: 52
• Price Markup (%): 7
• Revenue Task: 08
• Revenue Code: 08-000
• Vendor: ACMEDO
• Create Commitment: Selected
12.Enter another line with the following settings:
• Project Task: 08
• Account Group: SUBCON
• Cost Code: 08-520
• Inventory ID: SUBCONTR
• Quantity: 17
• UOM: EA
• Unit Cost: 50
• Price Markup (%): 7
• Revenue Task: 08
• Revenue Code: 08-000
• Vendor: ACMEDO
• Create Commitment: Selected
13.On the form toolbar, click Remove Hold. The system saves the change request with the Open status.
14.On the Projects (PM301000) form, open the ITALIAN project, and on the Change Requests tab, make sure
that the change request is now shown in the table.
15.On the Cost Budget tab, review the cost budget lines. In the 08-100 (Doors - Exterior) line with the SUBCON
account group, and in the 08-520 (Windows - Wood) line with the SUBCON account group, based on the
amount and quantity of the change request, the system has updated the values in the Potential CO
Quantity and Potential CO Amount columns (see the following screenshot).
 Part 4: Two-Tier Change Management | 105

Figure: The updated potential amount and quantity in the project

Step 2: Processing the Cost Part of the Change Request

Process the cost change order for the change request by doing the following:
1. On the Change Orders (PM308000) form, create a new record.
2. In the Summary area, specify the following settings:
• Class: INTERNAL
• Project: ITALIAN
• Change Date: 4/15/2023
• Approval Date: 4/15/2023
• Description: Extra costs for the Italian Restaurant project
3. On the Change Requests tab, click Select Change Requests on the table toolbar.
4. In the Select Change Requests dialog box, which opens, select the unlabeled check box in the row of the
change request you created earlier (Issue with French-style window), and then click Add Change Requests
& Close. The system adds the line with the change request to the table on the Change Requests tab
and specifies cost budget and commitment details on the Cost Budget tab and the Commitments tab,
respectively.
5. On the form toolbar of the Change Orders form, click Remove Hold and then click Release to release the
change order.
6. On the Change Requests tab, notice that the status of the change request is still Open, because the revenue
part of the change request has not been processed yet.

Step 3: Processing the Revenue Part of the Change Request

Process the revenue part of the change request by doing the following:
1. On the Change Orders (PM308000) form, create a new change order and specify the following settings:
• Class: EXTERNAL
• Project: ITALIAN
• Change Date: 6/29/2023
• Approval Date: 6/29/2023
• Description: Additional revenues for the Italian Restaurant project
2. Add the remaining revenue part of the previously created change request as follows:
 Part 4: Two-Tier Change Management | 106

a. On the Change Requests tab, click Select Change Requests, which opens the Select Change Requests
dialog box.
b. In the dialog box, select the unlabeled check box for the Issue with French-style window change request.
c. Click Add Change Requests & Close.
3. Save the change order. On the Revenue Budget tab, make sure the revenue budget line has been added.
Notice that on the Cost Budget tab and the Commitments tab, there are no lines, because you have already
processed the cost part of the change request.
4. On the Change Requests tab, make sure that the change request is now closed (and has Closed in the
Status box).
5. On the form toolbar, click Remove Hold, and then click Release to release the change order.
6. On the Projects form, open the ITALIAN project.
7. On the Revenue Budget tab, review the revenue budget lines. Make sure the values in the Budgeted CO
Amount column for the line with the 08-000 cost code have been updated with the amount from the change
order.

You have finished processing of a change request with cost and revenue parts.

Lesson 17: Track Changes to Budget Forecasts

Change Management: To Track Changes in the Budget Forecast

The following activity will walk you through the process of tracking changes in project budget forecasts.

Story
Suppose that for the restaurant that is being built by the ToadGreen company, some additional work is needed
on interior lighting. The work will be performed in July 2023 and will cost an additional $5000 that had not been
planned in the project budget. This work must be added to the project budget through the processing of a change
order and the related subcontract.
Acting as a project manager, you will create and release the needed documents, and review how these documents
affect the budget forecast.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The Budget Forecast and Change Orders features have been enabled on the Enable/Disable Features
(CS100000) form.
• On the Account Groups (PM201000) form, the SUBCON account group has been created.
• On the Projects (PM301000) form, the ITALIAN project has been created with multiple project tasks, including
the 16 - ELECTRICAL project task. Also, on the Cost Budgets tab, the cost budget has been defined for the
line with the 16-510 cost code and the SUBCON account group.
• On the Vendors (AP303000) form, the HOMEDEP vendor has been added.
 Part 4: Two-Tier Change Management | 107

Process Overview
To track the changes in the project, you will create and release a change order related to the project on the Change
Orders (PM308000) form; then you will track the changes in the forecast revision. On the Bills and Adjustments
(AP301000) form, you will prepare a bill for the subcontract prepared on release of the change order. Finally, you
will review the changes in the forecast revision on the Project Budget Forecast (PM209600) form.

System Preparation
To prepare to perform the instructions of this activity, in the info area, in the upper-right corner of the top pane of
the Acumatica ERP screen, make sure that the business date in your system is set to 5/19/2023. If a different date is
displayed, click the Business Date menu button, and select 5/19/2023 on the calendar. For simplicity, in this activity,
you will create and process all documents in the system on this business date.

Step 1: Processing a Change Order for a Project

Process a change order by doing the following:
1. On the Change Orders (PM308000) form, add a new record.
2. In the Summary area, specify DEFAULT in the Class box.
3. In the Project box, select ITALIAN.
4. In the Change Date box, specify 5/19/2023.
5. In the Approval Date box, specify 5/19/2023.
6. In the Description box, type Additional lighting services.
7. On the Cost Budget tab, add a line with the following settings:
• Project Task: 16
• Cost Code: 16-510
• Account Group: SUBCON
• Quantity: 1
• UOM: EA
• Unit Rate: 5000
8. On the Commitments tab, add a line with the following settings:
• Status: New Document (specified automatically)
• Project Task: 16
• Cost Code: 16-510
• Inventory ID: SUBCONTR
• Quantity: 1
• UOM: EA
• Unit Rate: 5000
• Vendor: HOMEDEP
• Commitment Type: Subcontract
Based on this line the system will create a new subcontract document to record a commitment to the
project.
9. On the form toolbar, click Remove Hold, and then click Release. The system releases the change order and
assigns it the Closed status.
 Part 4: Two-Tier Change Management | 108

10.On the Project Budget Forecast (PM209600) form, in the Project box, select ITALIAN and in the Revision box,
select 1.
11.In the Summary area, specify the following settings:
• Account Group: SUBCON
• Cost Code: 16-510
The system filters the budget lines and displays the only line that matches the selection criteria you have
specified.
12.In the Budgeted CO Amount column, for the 52023 period, note that the amount specified in the change
order (5000) has appeared. (Potential values are reflected in the financial period of the change date of the
change order.)
13.Save the forecast.

Step 2: Preparing a Bill for the Subcontract

Process a bill for the subcontract by doing the following:
1. On the Subcontracts (SC301000) form, open the subcontract to the HOMEDEP (Bellevue Home Depot) vendor
dated 5/19/2023, which the system automatically created on release of the change order.
2. On the form toolbar, click Enter AP Bill.
The system opens the Bills and Adjustments (AP301000) form, where it has created a new bill and copied the
corresponding settings of the subcontract to it.
3. In the Date box in the Summary area, specify 5/30/2023.
4. On the form toolbar, click Remove Hold and then click Release to release the bill.
5. On the Project Budget Forecast (PM209600) form, in the Project box, select ITALIAN and in the Revision box,
select 1.
6. In the Summary area, specify the following settings:
• Account Group: SUBCON
• Cost Code: 16-510
Review the forecast lines and notice that the system has updated the budgeted and actual amounts for the
05-2023 period, as shown in the following screenshot.

Figure: Updated amounts in the budget forecast

Note that the value in the Delta line for the actual amount is highlighted in red. This means that a period for
which an actual amount exists is not displayed in the forecast.

You have updated project actual values and reviewed how this affected the project budget forecast.
 Part 5: Project Invoices | 109

Part 5: Project Invoices

Lesson 18: Billing Project for Progress with Retainage

AR Invoices with Retainage: General Information

If a customer retains a part of the amount of an invoice, to process the total amount of the invoice, at least two
invoices are created in Acumatica ERP: the accounts receivable invoice with retainage, and the retainage invoice.
The invoice with retainage is paid during the period of time agreed upon between your company and the customer.
The retainage invoice is an invoice that contains the retained amount or a part of the retained amount to be paid,
and it is paid aer the contractual work has been finished. Multiple retainage invoices can be created for one
invoice with retainage.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create a pro forma invoice and the related AR invoice with retainage
• Process the AR invoice with retainage
• Release the retainage from the AR invoice
• Apply payments to invoices with retainage

Applicable Scenarios
You process an invoice with retainage when the customer has withheld a part of the invoice amount until the work
is substantially complete to assure that your company will satisfy its obligations and complete the construction
project.

The Processing Workflow of an Invoice with Retainage

Typically, an AR invoice with retainage goes through the following states during its life cycle:
1. Entering the invoice with retainage and preparing the invoice for release: A data entry person creates the
invoice with retainage in the system on the Invoices and Memos (AR301000) form. The balance of this invoice
equals the sum of the extended prices minus the line discounts of the lines of the invoice, with this subtotal
reduced by the retainage amount. The total amount of the invoice (which is shown on the Retainage tab) is
the detail total amount plus the retained amount.
2. Releasing the invoice with retainage: An accountant releases the prepared invoice. This released invoice is
assigned the Open status, affects the balances of the selected customer and the general ledger accounts,
and requires further processing.
3. Receiving a payment for the invoice with retainage: The accountant enters a payment in the system to pay
the invoice, and then processes and releases the payment. The system reduces the balance of the invoice by
the amount paid. When the payment is released, the balance of the customer is reduced by the paid amount
and the general ledger accounts are updated. The invoice still has the Open status.
4. Releasing a retainage: Once the work has been completed, the accountant releases a part of the retained
amount or the full retained amount for the invoice. When the retainage is released, the system creates a
 Part 5: Project Invoices | 110

retainage invoice with the Balanced or On Hold status, depending on whether the Hold Documents on
Entry check box is selected on the Accounts Receivable Preferences (AR101000) form.
When the retainage invoice is released, the system updates the balances of the customer, the related
general ledger accounts, and the unreleased retainage amount of the invoice with retainage.
5. Receiving a payment for the retainage invoice: The accountant enters a payment in the system for the
retainage invoice, and then processes and releases the payment. The system reduces the balance of the
retainage invoice by the amount paid. The balance of the customer is reduced by the paid amount, and the
general ledger accounts are updated.
If the full retained amount has been released and paid, the invoice with retainage is assigned the Closed
status, and its unreleased and unpaid retainage amounts equal zero.
If a part of the retained amount has been released and paid, the invoice with retainage keeps the Open
status. The system reduces the invoice's unreleased and unpaid retainage amounts by the retainage
released and the retainage paid, respectively.

AR Invoices with Retainage: To Perform Progress Billing with Retainage

This activity will walk you through the process of performing progress billing with retainage.

Story
Suppose that the ToadGreen Building Group company is building a hotel for the Equity Group Investors. A
ToadGreen project manager bills the customer for the progress of the work being performed. According to the
contract signed with the customer, the customer retains 5% of the amount of each progress billing line in an
invoice. Aer a defined part of the work is done, the ToadGreen project accountant prepares an AR invoice for the
customer to request the release of 20% of the retained amount.
Acting as the project manager, you need to prepare a pro forma invoice for the project. Then acting as the project
accountant, you need to enter and process all the needed financial documents in the system.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Retainage Support
• Payment Application by Line
• Construction
• On the Customers (AR303000) form, the EQUGRP customer has been created; the Pay by Line and Apply
Retainage check boxes are selected on the Financial tab for this customer. On the GL Accounts tab, 18000 is
specified in the Retainage Receivable Account box.
• On the Projects (PM301000) form, the HOTEL project has been created with multiple project tasks and their
budgets. The PROGRESS billing rule is assigned to all project tasks. On the Summary tab of the form, the
Standard option is selected in the Retainage Mode box and 5.00 is specified in the Retainage (%) box of the
Retainage section.

Process Overview
You will specify the pending invoice amounts on the Projects (PM301000) form and run the project billing. On the
Pro Forma Invoices (PM307000) form, you will release the generated pro forma invoice. Also, you will release the
related AR invoice on the Invoices and Memos (AR301000) form.
 Part 5: Project Invoices | 111

You will then prepare the retainage invoice by using the Release AR Retainage (AR510000) form, and release it on
the Invoices and Memos form. On the Payments and Applications (AR302000) form, you will create a payment that
includes lines of both the original invoice and the retainage invoice and release the payment and the payment
application.

System Preparation
To prepare to perform the instructions of this activity, in the info area, in the upper-right corner of the top pane of
the Acumatica ERP screen, make sure that the business date in your system is set to today’s date. For simplicity, in
this activity, you will create and process all documents in the system on this business date.

Step 1: Creating and Releasing the AR Invoice with Retainage

To perform progress billing with retainage, do the following:
1. On the Projects (PM301000) form, open the HOTEL project.
2. On the Revenue Budget tab, in the first line (for the 01 project task) of the table, in the Pending Invoice
Amount column, enter 100000.
3. In the second line (for the 02 project task), in the Pending Invoice Amount column, specify 10000.
4. Make sure that the Pending Invoice Amount Total in the Summary area of the Revenue Budget tab is
110,000.00, and click Run Project Billing on the form toolbar to bill the project by progress.
The system opens the Pro Forma Invoices (PM307000) form with a prepared pro forma invoice. The pro
forma invoice includes two lines on the Progress Billing tab; in each line, the Amount box shows the
Pending Invoice Amount from the respective revenue budget line (100,000 and 10,000), and the calculated
retainage amount (5,000 and 500) is shown in the Retainage Amount box.
5. On the form toolbar, click Remove Hold to assign the pro forma invoice the Open status, and then click
Release to release the document.
6. On the Financial tab, click the Edit button next to the AR Ref. Nbr. box. The AR invoice that was created
opens on the Invoices and Memos (AR301000) form. The invoice total amount is 104,500. The amount of the
first line is 95,000 (which is the line amount, 100,000, minus the retainage amount, 5,000). For the second
line, the amount is 9,500 (10,000 – 500).

The Pay by Line check box is selected in the Summary area, indicating that the balances of
this invoice are tracked at the line level. The default value of this setting is copied from the
customer record.

7. On the form toolbar, click Remove Hold to assign the accounts receivable invoice the Balanced status.
8. On the form toolbar, click Release to release the invoice.
9. Sign out from the system.

You have billed the project by progress and prepared the pro forma invoice and the AR invoice.

Step 2: Releasing Retainage of the AR Invoice

To release the retainage, do the following:
1. Sign in as a project accountant by using the bsanchez username and the 123 password.
2. On the Invoices and Memos (AR301000) form, open the AR invoice to the EQUGRP customer in the amount of
$104,500, which you have created earlier in this activity.
3. On the More menu (under Processing), click Release Retainage. The system opens the Release AR
Retainage (AR510000) form.
 Part 5: Project Invoices | 112

4. In the Summary area, in the Retainage Percent box, specify 20, which is the percentage of the retainage to
be released (1,000.00 and 100.00, respectively, shown in the Retainage to Release column of the table).
5. Select the unlabeled check box for both lines in the table, and click Process on the form toolbar.
The Processing dialog box opens. When the process is complete, the system creates a retainage AR invoice.
Close the dialog box.
6. On the Invoices and Memos form, open the prepared retainage document. In the Summary area, notice that
the Retainage Document check box is selected. The total retainage invoice amount is 1,100.00 (which is the
retainage amount that you have released).
7. On the form toolbar, click Remove Hold and then click Release to release the retainage document.
8. On the Financial tab, click the link in the Batch Nbr. box to open the generated batch of general ledger
transactions.
The system opens the Journal Transactions (GL301000) form with the GL transaction created for the
retainage invoice. Notice that the retainage amount has credited the 18000 – AR Retainage account and
debited the 11000 – Accounts Receivable account. (The system has generated two separate credit entries for
each of the processed retainage amounts.)

Step 3: Entering a Payment for the Invoices

Process the payment for the prepared invoices as follows:
1. Open the original AR invoice to the EQUGRP customer in the amount of $104,500 on the Invoices and Memos
form.
On the Details tab, in the invoice lines, notice that the Unreleased Retainage balances has been reduced
by the amount of the released retainage. For the first line, the originally retained amount was 5,000.00, the
amount of 1,000 has been released, and the remaining unreleased retainage balance is 4,000.00. For the
second line, the remaining unreleased retainage balance is 400.00.
2. On the form toolbar, click Pay.
The system opens the Payments and Applications (AR302000) form with the prepared payment, which has
two lines. In each line, the system has populated the Amount Paid column with the amount from the
Balance column of the invoice.
3. On the table toolbar of the Documents to Apply tab, click Add Row; add the first line of the retainage
invoice in the full amount of the open balance by performing the following instructions:
a. In the Reference Nbr. column, select the reference number of the retainage invoice.
b. In the Line Nbr. column, select 1 (the first line).
c. In the Amount Paid column, specify 1000.
4. On the table toolbar of the Documents to Apply tab, click Add Row; add the second line of the retainage
invoice in the full amount of the open balance by performing the following instructions:
a. In the Reference Nbr. column, select the reference number of the retainage invoice.
b. In the Line Nbr. column, select 2 (the first line).
c. In the Amount Paid column, specify 100.
5. In the Summary area, in the Payment Amount box, enter 105,600.
6. On the form toolbar, click Remove Hold, and then click Release to release the payment along with the
payment applications to the invoice lines.
7. On the Application History tab, click the Reference Nbr. link in any of the original invoice lines to open the
original invoice on the Invoices and Memos form. The open AR balance of the invoice (in the Balance box) is
now zero, as shown in the following screenshot, but the invoice retains the Open status because the invoice
lines still have unreleased retainage amounts.
 Part 5: Project Invoices | 113

Figure: The original invoice with the unreleased retainage amount

You have prepared the invoice with retainage for the project, released a part of the retainage, and paid for the
original and retainage documents.

Construction Reports: General Information

Acumatica ERP Construction Edition provides multiple construction reports that you can provide to customers.

Learning Objectives
In this chapter, you will learn how to do the following:
• Print and send substantiated billing reports, and understand what information is included in them
• Print and send work-in-progress reports, and understand what information is included in them
• Print and send American Institute of Architects (AIA) reports, and understand what information is included
in them
• Print and send bonding reports, and understand which information is included in them
• Review the project lifecycle and performance with the help of Acumatica ERP Construction Edition reports,
which are described in this chapter

Substantiated Billing Reports

In the construction industry, when contractors bill their customers, the customers may want to see proof of the
costs. In this case, the contractors need to provide supporting documentation along with the customer statement
or invoice. Acumatica ERP Construction Edition includes the following substantiated billing reports, which you (as a
contractor) can use to retrieve costs for a specific billing period:
• Substantiated Billing (PM650000) report
This report provides a list of costs for the specified period with all transactions related to payable invoices,
labor, and other project expenses grouped by the cost codes.
• Substantiated Billing - Consolidated (PM650050) report
In addition to the list of costs and transactions of a project for the specified period, the generated report
includes all scanned or uploaded images (of the PNG, JPG, JPEG, BMP, GIF, TIFF, or TIF format) attached to
the corresponding cost records as separate pages. Also, the generated report file includes hyperlinks to the
attached files that could not be included directly in the PDF file (such as encrypted PDF files).
 Part 5: Project Invoices | 114

WIP Reports
WIP (which can indicate work in progress or work in process) is designed to track the progress of active jobs, as well
as their financial performance. The tracking of WIP gives you the ability to determine whether a job is overbilled
or underbilled relative to its progress, and shows the percentage of completion and the cost to complete the job.
When companies use the percentage-of-completion method for revenue recognition, they include a WIP schedule
with their financial statements.
Acumatica ERP Construction Edition supports several versions of WIP reporting to provide the necessary
information to meet your business’s needs. The recent inclusion of a bonding report can be used to give surety
companies visibility into your business’s performance.

AIA Reports
The common construction billing format is known as AIA progress billing, named based on the American Institute
of Architects, which produces the industry’s official forms. With the AIA reports provided in Acumatica ERP
Construction Edition, you bill the customer based on the percentage of work completed for that billing period. For a
detailed description of the information included in AIA reports, see Construction Reports: AIA Reports.

Bonding Reports
By using the Construction Bonding Report, you can create a report of the work in progress for projects in a selected
date range. This report can be used by management as well as by external entities, such as bonding companies, to
determine the financial health of projects. The report gives a bigger snapshot of all the projects in the system and
can reinforce management confidence. You can analyze how much is actually billed for the project compared to the
percentage of the project completion.
The Construction Bonding Report (PM650500) includes the following columns: Earned Revenue, Billed to Date,
Unbilled Contract Amounts, Cost Incurred to Date, Calculated Cost at Completion, and Current Period Costs/Billings,
as well as the prior year's Billings and Costs.

Lesson 19: Preparing AIA Reports

Construction Reports: AIA Reports

The following sections describe the structure of the American Institute of Architects (AIA) report in Acumatica ERP
Construction Edition and the available report variations. Also, the sections provide information on how you can
reflect historic retainage and the release of change orders for the project, and how you can print the AIA report for
billing only the retainage.

AIA Report Structure

The AIA report consists of a signed summary sheet (AIA Document G702™–1992, Application and Certificate for
Payment), followed by a schedule of values (G703™–1992, Continuation Sheet) that details the project tasks that
have been completed and billed to date. Together, these documents are considered an application for payment,
because the recipient can review the schedule of values and either accept or dispute the billed amount. If the
recipient or contractor disagrees, they will send back redlines so that the contractor can revise and resubmit the
AIA billing application. The prepared document that includes both the application sheet (G702) and continuation
sheet (G703) is called an AIA report.
 Part 5: Project Invoices | 115

In an AIA report, the application sheet and continuation sheet provide convenient and complete forms on which
the contractor can apply for payment and the architect can certify that payment is due. The application requires
the contractor to show the status of the contract totals to date, including the total amount of the work completed
and stored to date, the amount of retainage (if any), the total of previous payments, a summary of change orders,
and the amount of payment currently being requested. The continuation sheet breaks the contract sum into
parts of the work, in accordance with a schedule of values prepared by the contractor as required by the general
conditions.

An AIA report serves as both the contractor’s application and the architect’s certification. Using an AIA
report helps to expedite payment and reduces the possibility of errors. If the application is properly
completed and acceptable to the architect, the architect’s signature certifies to the owner of the
project that a payment in the amount indicated is due to the contractor. The form also gives the
architect the ability to certify an amount that is different than the amount applied for and to provide a
corresponding explanation.

Configuration of AIA Report Parameters for a Project

Based on project requirements, for a particular project, you define the format in which the AIA report will be
prepared. To prepare a printable version of the AIA report, you select the line with the needed pro forma invoice in
the table on the Invoices tab of the Projects (PM301000) form, and click AIA Report on the table toolbar; you can
instead open the pro forma invoice on the Pro Forma Invoices (PM307000) form and click Print AIA Report on the
form toolbar.
By default, a newly created project has the AIA Level set to Summary and the Show Quantity in AIA Report check
box cleared. When you create an AIA report for a project with these settings, the standard AIA Report (PM644000) is
prepared with continuation sheet lines grouped by project tasks.
If you need to include quantities in the lines of the continuation sheet of the AIA report prepared for a project, in
the settings of the project on the Projects form, you select the Show Quantity in AIA Report check box, so that
the system will create the AIA Report with Quantity (PM644500) report. To list the continuation sheet lines without
grouping them by project tasks (that is, as the lines are presented in the corresponding pro forma invoice), select
Detail in the AIA Level box.

Date-Sensitive Data in AIA Reports

AIA reports are date-sensitive, which means that the particular amounts are included or not included in the
report based on the report date; this in turn could lead to differences between the calculation of amounts in AIA
reports and the financial calculations in other documents. The date on which the AIA report is prepared affects the
amounts in the AIA application sheet as follows:
• In the Net Change by Change Orders amount, the system includes only change orders that have an
approval date before the invoice date of the pro forma invoice for which the AIA report is being prepared.
• In the Retainage amount, the system does not include the retainage that has been released before the
creation of the pro forma invoice for which the AIA report is being prepared (that is, the invoice date of the
retainage invoice is earlier than the invoice date of the pro forma invoice).
• In the Less Previous Certificates for Payment amount, the system includes the sum of the retainage
amounts that have been released before the date of the previous application (that is, the invoice date of the
retainage invoice is earlier than or the same as the invoice date of the previous pro forma invoice prepared
for the project).
• In the Current Payment Due amount, the system includes the amounts of the retainage invoices that have
been prepared since the last application (that is, the invoice date of the retainage invoice is aer the invoice
date of the previous pro forma invoice and is earlier than or the same as the invoice date of the pro forma
invoice for which the AIA report is prepared).
The date on which the AIA report is prepared affects the following amounts in the AIA continuation sheet:
 Part 5: Project Invoices | 116

• In the amounts in the Change Orders and Change Qty. columns, the system includes only change orders
that have an approval date that is earlier than the invoice date of the pro forma invoice for which the AIA
report is being prepared.
• In the Retainage Held amount, the system does not include the retainage that has been released before the
creation of the pro forma invoice for which the AIA report is being prepared (that is, the invoice date of the
retainage invoice is earlier than the invoice date of the pro forma invoice).

Construction Reports: To Prepare AIA Report

This activity will walk you through the process of working with an American Institute of Architects (AIA) report.

Story
Suppose that the ToadGreen Building Group company is in the middle of building a hotel for the Equity Group
Investors. As has been agreed with the customer, the customer is being billed once a month based on the progress
of the performed work. The ToadGreen construction project manager is tracking the progress of work as a fixed-
price project, billing the customer by the percent of project completion.
Acting as the construction project manager, you need to prepare the AIA report for the third payment application
for the project.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Construction
• Construction Project Management
• On the Projects (PM301000) form, the HOTELCP project has been created with project tasks and their
budgets. On the Summary tab, in the AIA section, the Show Quantity in AIA Report check box is cleared.
• For the project, three billing iterations have been performed. The pro forma invoices and corresponding AR
invoices has been prepared and released on the Pro Forma Invoices (PM307000) and Invoices and Memos
(AR301000) forms, respectively.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a construction project manager by using the ewatson username and the 123
password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.

Step: Preparing the AIA Report

To prepare the report, do the following:
1. On the Projects (PM301000) form, open the HOTELCP project.
2. On the Invoices tab, click the line with the invoice that has an Invoice Total of 11,532,792.25.
3. On the table toolbar, click AIA Report.
 Part 5: Project Invoices | 117

The system opens the AIA Report (PM644000) report for the pro forma invoice, as shown in the following
screenshots.

Figure: AIA Application for Payment

 Part 5: Project Invoices | 118

Figure: AIA Continuation Sheet

You have prepared the printable AIA report for the third payment application for the project.

Lesson 20: Preparing AIA Reports for Released Retainage

Construction Reports: AIA Reports for Released Retainage

If the Retainage Support feature is enabled on the Enable/Disable Features (CS100000) form, you can create an AIA
report that includes the retainage that has been fully or partially released (depending on the date for which the AIA
report is prepared), or that includes all released retainage at the end of the project.
You can prepare an AIA report for released retainage if the following conditions have been met:
• The retainage in the financial period for which the report is being prepared has been released.
• The zero pro forma invoice (that is, the pro forma invoice prepared during project billing with a pending
invoice amount of zero) has been created, and the invoice date of the zero pro forma invoice is the same as
or later than the date of the corresponding AR retainage invoice.
A zero pro forma invoice can be created only if in the billing rule assigned to a project task, the Create
Lines with Zero Amount and Quantity check box is selected in the progress billing step on the Billing Rules
(PM207000) form. You run project billing for a project with a pending invoice amount of zero to prepare a
zero pro forma invoice.
If all conditions are met, to prepare the printable version of the AIA report, you select the line with the zero pro
forma invoice in the table on the Invoices tab of the Projects (PM301000) form, and click AIA Report on the table
toolbar. Alternatively, you can open the zero pro forma invoice on the Pro Forma Invoices (PM307000) form and
click Print AIA Report on the form toolbar. Depending on the date for which the AIA report is prepared, the report
will include the retainage that has been fully or partially released in the middle of the project, or all released
 Part 5: Project Invoices | 119

retainage at the end of the project. In the prepared report, the total retainage amount on the cover sheet of the AIA
report is calculated as the sum of the held retainage amounts on the AIA continuation sheet.

Construction Reports: To Prepare AIA Report for Released Retainage

This activity will walk you through the process of preparing AIA report for released retainage.

Story
Suppose that the ToadGreen Building Group company is in the middle of building a hotel for the Equity Group
Investors. As has been agreed with the customer, the customer is being billed once a month based on the progress
of the performed work. The ToadGreen construction project manager is tracking the progress of work as a fixed-
price project, billing the customer by the percent of project completion. The project has been billed three times,
in April, May and June, 2023. According to the contract signed with the customer, the customer retains 5% of the
amount of each progress billing line in an invoice.
Also suppose that on 6/10/2023, aer a certain part of work is done, the ToadGreen project manager need to
prepare to request the release of 20% of the retained amount from customer. Acting as the project manager,
you need to release a part of retainage and prepare an AIA report for the released part of retainage for the
corresponding financial period.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The following features have been enabled on the Enable/Disable Features (CS100000) form:
• Construction
• Construction Project Management
• On the Projects (PM301000) form, the HOTELRT project has been created with project tasks and their
budgets. In the billing rule assigned to project tasks (PROGRRET), the only progress billing step is configured
on the Billing Rules (PM207000) form and the Create Zero Lines with Zero Amount and Quantity check box
is selected.
• For the project, three billing iterations have been performed. The pro forma invoices and corresponding AR
invoices has been prepared and released on the Pro Forma Invoices (PM307000) and Invoices and Memos
(AR301000) forms, respectively.

Process Overview
You will release a part of retainage for the project by using the Release AR Retainage (AR510000) form; then you
will release the prepared retainage invoice on the Invoices and Memos (AR301000) form. Then you will run project
billing for the project and review the prepared pro forma invoice for the released retainage on the Pro Forma
Invoices (PM307000) form. Finally, you will prepare AIA report for the released retainage amount.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a construction project accountant by using the bsanchez username and the 123
password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 6/10/2023. If a different date is displayed, click the Business Date menu
 Part 5: Project Invoices | 120

button, and select 6/10/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Reviewing AIA Report

Review the amounts in AIA report before retainage release, as follows:
1. On the Projects (PM301000) form, open the HOTELRT project.
2. On the Invoices tab, click the line with the invoice dated 6/1/2023, and on the table toolbar, click AIA
Report. On the Application and Certification for Payment page of the AIA report that opens on the AIA
Report (PM644000) form, review the Retainage amount, which is $958,392.99, and the Current Payment
Due amount, which is $10,956,152.62.

You will release a part of the retainage for this invoice.

Step 2: Releasing Retainage

To release a part of retainage held for the project, do the following:
1. On the Invoices and Memos (AR301000) form, open the AR invoice for the HOTELRT project in the amount of
10,956,152.62 dated 6/1/2023. This is the invoice that has been prepared on release of the third pro forma
invoice for the project.
2. On the More menu, click Release Retainage. The system opens the Release AR Retainage (AR510000) form
with the invoice reference number selected in the Summary area.
3. In the Summary area, specify the following settings:
• Date: 6/10/2023
• Retainage Percent: 20
4. Select the unlabeled check box for all the invoice lines.
5. In the Selection area, make sure the calculated retainage amount to be released is 115,327.92, and on the
form toolbar, click Process.
The Processing dialog box opens. When the process is complete, close the dialog box.
6. On the Invoices and Memos form, find and open the prepared retainage invoice, which is assigned the On
Hold status. In the Summary area, notice that the Retainage Document check box is selected, which means
that the invoice has been prepared for the released retainage amount (which is 115,327.92).
7. In the Summary area, make sure 6/10/2023 is specified as the Date.
8. On the form toolbar, click Remove Hold, and click Release to release the invoice. The retainage invoice is
assigned the Open status.

Step 3: Creating Zero Pro Forma Invoice

To create a pro forma invoice for the retainage invoice, do the following:
1. On the Projects (PM301000) form, open the HOTELRT project.
2. In the Next Billing Date box on the Summary tab, make sure 7/1/2023 is specified.
3. On the Revenue Budget tab, make sure Pending Invoice Amount Total is 0.
4. On the form toolbar, click Run Project Billing. The system creates a zero pro forma invoice and opens it on
the Pro Forma Invoices (PM307000) form. On the Progress Billing tab, notice that the system has created
lines with zero amount for each project task.
 Part 5: Project Invoices | 121

Step 4: Preparing AIA Report

To prepare AIA report, do the following:
1. While you are still viewing the prepared pro forma invoice on the Pro Forma Invoices (PM307000) form, on
the form toolbar, click Remove Hold, and then click Release to release the invoice.
2. On the form toolbar, click Print AIA Report. The system opens the AIA report on the AIA Report (PM644000)
form. On the Application and Certification for Payment page of the report (see the screenshot below),
review the updated amounts:
• The Retainage amount has been decreased by the amount of the released retainage and is now
$843,065.07 ($958,392.99 - $115,327.92). This amount is calculated as the sum of the held retainage
amounts on the AIA continuation sheet.
• The Current Payment Due amount is $115,327.92 (the amount of retainage that has been released).

Figure: AIA report with released retainage

You have prepared AIA report with the released retainage amount.

Lesson 21: Correcting Pro Forma Invoices

 Part 5: Project Invoices | 122

Pro Forma Invoice Correction: General Information

You can make corrections to a pro forma invoice with the Closed status even if the corresponding accounts
receivable document created based on this pro forma invoice has already been released.

Learning Objectives
In this chapter, you will learn how to:
• Make corrections to a pro forma invoice that has the corresponding AR document released
• Review the previous revision of the pro forma invoice.

Applicable Scenarios
You correct a pro forma invoice if you need to keep its reference and application numbers. For example, you may
need to correct an existing pro forma invoice because it has been used for printing the AIA Report (PM644000)
report.

Making Corrections to a Pro Forma Invoice

You can correct a pro forma invoice for which the corresponding accounts receivable invoice has been released if
the following conditions are met:
• The pro forma invoice has only progress billing lines.
• The application of payments are removed or the payments are voided for the corresponding accounts
receivable invoices.
• Corresponding retainage invoices related to the pro forma invoice are reversed or deleted.
• The billing currency is the same as the project currency.
To assign a pro forma invoice the On Hold status so that it can be edited, on the More menu of the Pro Forma
Invoices (PM307000), you click Correct. The system changes the status of the pro forma invoice and adds a line with
the previous revision of the pro forma invoice to the Previous Revisions table on the Financial tab.
When you make all the needed adjustments to the pro forma invoice and release it, the system creates the accounts
receivable document with the full amount of the corrected pro forma invoice. The system also creates a reversing
AR document with the On Hold status to completely reverse the accounts receivable document related to the
previous revision of the pro forma invoice.
The previous revision of the accounts receivable document, as well as the reversing AR documents, are shown on
the Financial tab (Previous Revisions table) of the Pro Forma Invoices form and on the Invoices tab of the Projects
(PM301000) form.

Workflow of Correcting Pro Forma Invoices

The following diagram illustrates the workflow of correcting a pro forma invoice.
 Part 5: Project Invoices | 123

Pro Forma Invoice Correction: To Correct Actual Amounts in AIA Reports

In this activity, you will learn how to make corrections in an AIA report for which the pro forma invoice has been
released and closed, and the corresponding accounts receivable invoice has been released.

Story
Suppose that the ToadGreen Building Group company is building a hotel for the Equity Group Investors customer.
The ToadGreen project manager has created a project to track the work progress and to control related revenues
and expenses. In April and May 2023, the project accountant has prepared two pro forma invoices, each for part of
the performed work; aer the customer agreed to the amounts, the project accountant billed the customer.
Further suppose that at the end of May, the ToadGreen construction project manager noticed that a mistake had
been made in two lines of the first pro forma invoice. The total of the pro forma invoice is 10,806,560.21, but it
should be 10,601,350.41. The construction project manager has reviewed the invoice details and found out that the
following corrections must be made:
• The Amount to Invoice in the line with the 03 project task and 03-000 cost code is 5,990,284.80, but it should
be 5,783,075.00.
• The Amount to Invoice in the line with the 04 project task and 04-000 cost code is 145,277.76, but it should
be 147,277.76.
The incorrect pro forma invoice was already used for generating the March AIA report. Because the amounts in the
first AIA report were incorrect, the April report also needs to be corrected and the AIA report has to be generated
again.
 Part 5: Project Invoices | 124

Acting as the construction project manager, you need to enter and process the related documents to adjust the
actual amounts in AIA reports for March and for April. You then need to regenerate these AIA reports.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Project Accounting, which provides support for the project accounting functionality
• Construction, which gives you the ability to make corrections to pro forma invoices with the
corresponding AR document released
• On the Projects (PM301000) form, the HOTELSM project has been created with multiple project tasks,
including the 03 and 04 project tasks. Also, on the Cost Budgets tab, the cost budget is defined for the line
with the 03-000 and 04-000 cost codes.
• On the Pro Forma Invoices (PM307000) form, a pro forma invoice dated 4/1/2023 has been created for
the project and released. On the Invoices and Memos (AR301000) form, the accounts receivable invoice
corresponding to the pro forma invoice has been created and released.
• On the Pro Forma Invoices form, a pro forma invoice dated 5/1/2023 has been created for the project and
released. On the Invoices and Memos form, the accounts receivable invoice corresponding to the pro forma
invoice has been created and released.

Process Overview
In this activity, on the Pro Forma Invoices (PM307000) form, you will initiate the correcting of a pro forma invoice for
the project. You will adjust the amounts and release the corrected pro forma invoice. On the Invoices and Memos
(AR301000) form, you will release the accounts receivable invoice created based on the pro forma invoice and
the credit memo created to reverse the previous AR invoice. Finally, you will regenerate the AIA report for the
corrected pro forma invoice and for the subsequent one; you will open the regenerated AIA reports on the AIA
Report (PM644000) form to verify that the amounts are correct.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a construction project manager by using the ewatson username and the 123
password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 5/29/2023. If a different date is displayed, click the Business Date menu
button, and select 5/29/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Correcting the Pro Forma Invoice

To correct the pro forma invoice for the project, do the following:
1. On the Projects (PM301000) form, open the HOTELSM project.
On the Invoices tab, review the pro forma invoices and accounts receivable invoices generated for
the project. Notice that the status of both pro forma invoices is Closed and the status of both accounts
receivable invoices is Open because the AR invoices have been generated for the pro forma invoices and
released.
2. Click the Pro Forma Reference Nbr. link in the first line to open the pro forma invoice on the Pro Forma
Invoices (PM307000) form. You need to correct the amounts in the lines with the 03 project task and 03-000
cost code and 04 project task and 04-000 cost code.
 Part 5: Project Invoices | 125

3. On the More menu, click Correct to make corrections to the pro forma invoice. The system assigns the
pro forma invoice the On Hold status. Make sure that the Invoice Date is the date of the original accounts
receivable invoice (4/1/2023).
On the Financial tab, notice that the AR Ref. Nbr. box (Invoice Settings section) is empty (because this
pro forma invoice is being edited and has not been released) and a row with the previous revision of the
accounts receivable invoice (which has an invoice total of $10,806,560.21) has appeared in the Previous
Revisions table.
4. On the Progress Billing tab, correct the amounts in the Amount to Invoice column as follows:
• In the lines with the 01 and 02 project tasks, leave the amounts as is.
• In the line with the 03 project task, enter 5,783,075.00.
• In the line with the 04 project task, enter 147,277.76.
5. In the Summary area, make sure that the invoice total is now 10,601,350.41.
6. On the form toolbar, click Remove Hold, and then click Release to release the pro forma invoice. The
system creates the accounts receivable invoice based on the pro forma invoice and assigns the Closed status
to the pro forma invoice.
In the Previous Revisions table of the Financial tab, in the line for the previous revision of the AR invoice,
notice that a reference number is now shown in the Reversing Ref. Nbr. column. This is the number of the
credit memo the system has created to reverse this AR invoice.
7. Click the Edit button to the right of the AR Ref. Nbr. box (Invoice Settings section) to open the accounts
receivable invoice that was created when you released the corrected pro forma invoice.
8. On the form toolbar of the Invoices and Memos (AR301000) form, which the system opens in a pop-up
window, click Remove Hold, and then click Release to release the accounts receivable invoice.

Step 2: Regenerating AIA Reports

1. On the Projects form, open the HOTELSM project.
On the Invoices tab, notice that the corrected AR invoice and the correction credit memo have appeared in
the table. Also, notice that the warning next to the first two lines indicating that the AIA reports have to be
regenerated for the pro forma invoices because the amounts have changed.
2. Click the first line in the table, and on the table toolbar, click AIA Report to again generate the AIA report
for April. The system generates the AIA report and opens it on the AIA Report (PM644000) form. In the
Continuation Sheet of the report, make sure the last two lines show the updated amounts, as shown in the
following screenshot.

Figure: Corrected amounts in AIA report

 Part 5: Project Invoices | 126

3. Again open the HOTELSM project on the Projects form, and on the Invoices tab, notice that the warning is
now shown only for the pro forma invoice dated 5/1/2023.
4. Click the line with this invoice in the table, and on the table toolbar, click AIA Report to again generate the
AIA report for May. The system generates the updated AIA report and opens it on the AIA Report (PM644000)
form. Make sure that Total Completed & Stored to Date has been updated and now equals 12,602,270.04.

You have finished correcting the amounts in the pro forma invoice and prepared updated AIA reports. In a
production setting, project accountant would apply the reversing credit memo to the original AR invoice, which is
beyond the scope of this activity.

Lesson 22: Preparing WIP and Bonding Reports

Construction Reports: To Prepare a Bonding Report

This activity will walk you through the process of working with the bonding report.

Story
Suppose that to ensure profitability, a project estimator of the ToadGreen company wants to see how projects are
progressing in March 2023 , and which of them may need special attention. Acting as a project estimator, you will
prepare and review the construction bonding report for this purpose.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Construction
• Construction Project Management
• On the Projects (PM301000) form, multiple projects have been created. (The projects are in the middle of the
lifecycle.)

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as the project estimator by using the wendell username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.

Step: Reviewing the Bonding Report

Prepare the report by doing the following:
1. Open the Construction Bonding Report (PM650500) report form.
2. On the Report Parameters tab, specify 3/1/2023 in the As of Date box. Leave the default values for all the
other parameters.
 Part 5: Project Invoices | 127

3. On the report form toolbar, click Run Report. The generated report shows the key details of all the active
projects, as shown in the following screenshot.

Figure: Construction bonding report for March

Construction Reports: To Prepare a Work-in-Progress Report

This activity will walk you through the process of working with the work-in-progress (WIP) report.

Story
Suppose that the ToadGreen company is building an Italian restaurant for the Italian Company, its customer, and
is in the middle of the lifecycle of the construction project. The ToadGreen project estimator needs to track the
progress of active project tasks, as well as their financial performance. The company uses the percentage-of-
completion method for revenue recognition and includes the work-in-progress reports in the company’s financial
statements.
Acting as a project estimator, you will review the current percentage of completion for the project tasks and the
cost to complete them, and you will determine whether each project task is overbilled or underbilled relative to
its progress. When using the percentage-of-completion method for revenue recognition, companies include a WIP
schedule with their financial statements.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Construction
• Construction Project Management
• On the Projects (PM301000) form, the ITALIAN2 project has been created with project tasks and their
budgets.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.
 Part 5: Project Invoices | 128

Step 1: Preparing the Project WIP Report

To prepare the WIP report, do the following:
1. Open the Project WIP (PM651000) report form, and specify the following report parameters:
• As of Date: 4/4/2023
• Project: ITALIAN2
2. On the report form toolbar, click Run Report to generate the WIP report.
In the prepared report, review the amounts in the Gross Profit column in the Actual bucket, and the Under
(Over) Billings column, as shown in the following screenshot.

Figure: Work-in-progress report for the ITALIAN2 project

As the report shows, you have to bill the customer more to establish a stable project continuation.

Now you need to investigate the work-in-progress report broken down by revenue budget lines.

Step 2: Reviewing the Project WIP Detailed Report

To prepare the detailed work-in-progress report, do the following:
1. While you are still reviewing the prepared work-in-progress report on the Project WIP (PM651000) form, click
the ITALIAN2 link in the Project column. The system opens the Project WIP Detail (PM652000) report.
2. On the report toolbar, click View PDF. The system prepares and opens a PDF file with the report in which
you can review the amounts for each project task.

You have prepared the work-in-progress report for the project.

Lesson 23: Tracking Retainage with a Cap

Retainage with a Cap: General Information

In Acumatica ERP Construction Edition, you can configure a project with contract cap retainage to be able to define
the maximum retainage amount that can be held for the project. For a project with contract cap retainage, you
perform progress billing, and the particular invoice amount is retained until the specified retainage limit is reached.

Learning Objectives
In this chapter, you will do the following:
• Learn how to configure a project with a contract cap
• Learn how the contract cap retainage is calculated
 Part 5: Project Invoices | 129

• Create pro forma invoices with retainage for the project until the retainage cap is reached
• Release the retainage for the project for multiple project budget lines
• Mass-process retainage invoices

Applicable Scenarios
You configure a project with contract cap retainage when it is necessary to specify the maximum retainage amount
that can be held for the project. When you bill this project, the retainage is withheld for the invoice lines until the
specified contract cap is reached.

The Application of Retainage with a Contract Cap

Construction projects with contractual agreements are typically billed based on the progress of the work; that is,
the customer generally has to make partial payments to the general contractor as the work progresses. Requests
for payments are prepared periodically—for example, monthly—and include the cost of the work accomplished
since the previous payment to the general contractor was made.
In accordance with the terms of the project, the customer usually retains a prescribed percentage of each progress
payment being made; a typical scenario is billing a project with contract cap retainage, which means that the
retainage is being withheld until it reaches the agreed-on amount (which is typically specified as a percentage
of the total project amount). Aer that, if the work is progressing and the customer is satisfied, the subsequent
progress payments are made in full. The accumulated retainage is held by the customer until the work receives
final certification by the architect. Once the customer accepts the project, the final payment, which includes the
accumulated retainage, is made to the general contractor.
When you bill a project for which contract cap retainage is configured, the selected contract cap retainage is
applied to the project when you bill it until the cap is reached. Retainage is calculated by the following formula:
Retainage Amount = Amount to Invoice * Retainage %
Aer the cap has been reached and the total retained amount held for the project, which is specified on the
Summary tab (Retainage section) of the Projects (PM301000) form, is at its maximum, no new retainage amount
is calculated for further invoices created during project billing. The Total Retained Amount held for the project is
reallocated between the invoice lines, based on their weight and retainage capacity. That is, the invoices have the
same total allocated retained amount but with different portions of it in the invoice lines (which are allocated to the
lines based on the calculated line weight).
On the Release AR Retainage (AR510000) form, you can gradually release the retainage held to clear the unreleased
retainage balance held on the AR invoice lines; this in turn causes decreases of the Retained Amount in the
revenue budget lines on the Revenue Budget tab of the Projects form.
The total retainage amount held for the project stays the same across all the invoices prepared for the project,
unless a change order that affects the project revenue budget has been released. If you configure the project
to include change orders in the retainage calculation—that is, if the Include CO check box is selected on the
Summary tab of the Projects form—the contract total, the completed percentage, and the cap amount are
recalculated in accordance with the changes in the revenue budget that have been introduced by the released
change orders.

Calculation of Retainage Amounts

In a pro forma invoice prepared on the Pro Forma Invoices (PM307000) form for a project with contract cap
retainage, the system calculates the Allocated Retained Amount (that is, the amount of retainage that is
considered to be held for the related revenue budget line in this pro forma invoice), by using the following formula:
Allocated Retained Amount = (Total Retained Amount - Total Released Retainage)
* Line Weight
In this formula:
 Part 5: Project Invoices | 130

• Total Retained Amount is the sum of the retained amounts for all revenue budget lines of the project.
• Total Released Retainage is the sum of the amounts of the released AR retainage documents that
are related to the project.
Once the contract cap is reached, in the subsequent invoices, the system reallocates the accumulated retainage
amount of each billing line based on a line weight calculation. For each pro forma invoice line, Line Weight is
calculated as follows:
Line Weight = (Amount to Invoice + Previously Invoiced Amount) / Total
Completed
In this formula, Total Completed is the sum of the Amount to Invoice and Previously Invoiced
Amount amounts for all pro forma invoice lines.

Retainage in AIA Reports

The calculated Allocated Retained Amount of a pro forma invoice line is shown in the Retainage Held column in
the continuation sheet of an American Institute of Architects (AIA) report: in Acumatica ERP Construction Edition,
AIA Report (PM644000) or AIA Report with Quantity (PM644500) report. In the AIA report generated for a project with
contract cap retainage, the retainage held amount is equal to the allocated retained amount from the pro forma
invoice that was calculated by using the formula above.

In projects with retainage without contract cap, a pro forma invoice prepared for a project does not
include the allocated retained amount. In the AIA report prepared for such a project, the retainage
held amount is equal to the Retainage Amount of the pro forma invoice on the Pro Forma Invoices
(PM307000) form.

The total retainage amount on the cover sheet of the AIA report is calculated as the sum of the held retainage
amounts on the AIA continuation sheet. Once the retainage is released, the released retainage amount is included
in the current payment due amount.

Retainage with a Cap: Process Activity

This activity will walk you through the process of performing progress billing for a project with contract cap
retainage.

Story
Suppose that the ToadGreen Building Group company is a general contractor that is building a hotel for The Equity
Group Investors. The project manager has created a fixed-price project; for this project, the customer will be
billed once a month based on the progress of the performed work. Also, in the project, the project manager has
defined the original project budget, which was also agreed upon with the customer. According to the contract, the
customer retains 5% from each invoice, which guarantees to the customer that the ToadGreen company will meet
its obligations in building the hotel.
Because the ToadGreen company, as a general contractor, needs to have enough resources for performing daily
operations, the contract also includes a 50% retainage cap, which specifies the maximum retainage amount that
can be held for the project.
Acting as the project manager, you need to make sure that the pro forma invoices prepared for the customer
include the correct retainage amounts, and that the retainage is no longer held aer the cap has been reached.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
 Part 5: Project Invoices | 131

• On the Enable/Disable Features (CS100000) form, the Construction, Payment Application by Line, and
Retainage Support features have been enabled.
• On the Customers (AR303000) form, the EQUGRP customer has been created; the Pay by Line and Apply
Retainage check boxes are selected on the General tab for this customer. On the GL Accounts tab, 18000 is
specified in the Retainage Receivable Account box.
• On the Billing Rules (PM207000) form, the PROGRRET billing rule has been created.
• On the Projects (PM301000) form, the HOTELCP project has been created with multiple project tasks and
their budgets. For each task, the PROGRRET billing rule is specified. On the Summary tab of the form, the
contract cap retainage settings have been configured for the project.
• For the project, three billing iterations have been performed. The pro forma invoices and the corresponding
AR invoices have been prepared and released on the Pro Forma Invoices (PM307000) and Invoices and
Memos (AR301000) forms, respectively; in each invoice, the retainage amount has been calculated.

Process Overview
You will review the billing details of a previously prepared pro forma invoice by using the Projects (PM301000) and
Pro Forma Invoices (PM307000) forms. You will then perform billing while the cap has not been reached by using
the same forms, and review the retainage that the system will calculate for the invoice. Aer that, you will perform
billing when the cap has been reached so that retainage is not calculated for this invoices.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a construction project manager by using the ewatson username and the 123
password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.

Step 1: Reviewing the Retainage Details of the Project

Review the details of the project as follows:
1. Open the Projects (PM301000) form.
2. In the Project ID box, select HOTELCP. In the Retainage section of the Summary tab, review the retainage
details for the project. The Total Retained Amount is 958,392.99, while the calculated cap amount is
992,886.42. The contract completion percentage shown in the Completed (%) box is 48.26, which means
that the 50% cap has not been reached and that additional retainage could still be withheld from the next
invoice.
3. On the Invoices tab, click the Pro Forma Reference Nbr. link for the pro forma invoice with the 0003 in the
Application Nbr. box.
On the Pro Forma Invoices (PM307000) form, which opens in a pop-up window with the selected pro forma
invoice, review the retainage amounts on the Progress Billing tab. In each line, the retainage amount is
calculated as the retainage percentage applied to the amount to invoice; for example, for the line with the
01-000 cost code, Retainage Amount is 103,859.15 (2,077,183.00 * 0.05).
The Retainage Total in the Summary area of the invoice (see the following screenshot) is the sum of the
Retainage Amount column values for this pro forma invoice. The total project retainage (held for all three
invoices prepared for the project by this moment) is shown in the Allocated Retained Total box in the
Summary area; this amount is the sum of the Allocated Retained Amount column values.
 Part 5: Project Invoices | 132

Figure: The pro forma invoice with the retainage calculated

Step 2: Billing a Project Based on Progress

Bill a project by doing the following:
1. Return to the HOTELCP project on the Projects (PM301000) form, and on the Revenue Budget tab, in the
Completed (%) box, change the amounts as follows:
• In the line with the 05-000 cost code, change Completed (%) to 66. The system calculates the Pending
Invoice Amount in the line to be 456,325.44.
• In the line with the 06-000 cost code, change Completed (%) to 75. The system calculates the Pending
Invoice Amount in the line to be 232,750.00.
• In the line with the 07-000 cost code, change Completed (%) to 80. The system calculates the Pending
Invoice Amount in the line to be 395,742.00.
• In the line with the 08-000 cost code, change Completed (%) to 75. The system calculates the Pending
Invoice Amount in the line to be 409,690.00.
2. In the Summary area of the tab, make sure the Pending Invoice Amount Total equals 1,494,507.44, and on
the form toolbar, click Save.
3. On the form toolbar, click Run Project Billing to generate a new pro forma invoice for the project. The
system opens the prepared document on the Pro Forma Invoices (PM307000) form, as shown in the
screenshot below.
Notice that the Allocated Retained Total equals 992,886.42: This is the maximum retainage amount that
can be held for the project. To avoid exceeding the retainage cap, for this invoice, the system has calculated
the rest of the retainage that can be held and has reallocated it proportionally between the invoice lines.
 Part 5: Project Invoices | 133

Figure: The pro forma invoice with retainage

4. On the form toolbar, click Remove Hold, and then click Release.
5. On the Invoices and Memos (AR301000) form, open the invoice to EQUGRP in the amount of 1,460,014.01,
which has been created on release of the pro forma invoice.
On the Details tab, notice that the calculated retainage percent is the same for all lines and is less then 5%
percent defined in the project. (Small differences between the retainage percentage in lines could occur
because of rounding.)
6. On the form toolbar, click Remove Hold, and then click Release.

The cap has been reached, so no more retainage will be calculated for the project. For the remaining invoices
prepared for the project, the system will not calculate retainage amounts.

Lesson 24: Billing Project for Time and Material with Retainage

AR Invoices with Retainage: To Perform Time and Material Billing with Retainage

This activity will walk you through the process of performing time and material billing with retainage.

Story
Suppose that the ToadGreen Building Group company is building a hotel for The Equity Group Investors. A
ToadGreen project accountant bills the customer for some extra time spent on the project that initially was not
budgeted for the project; as was initially agreed with the customer, 5% retainage is held on these invoices.
Acting as the project manager, you need to create a new project task, enter a project transaction that represents
the extra work, and create an invoice for that work with the retained amount.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
 Part 5: Project Invoices | 134

• Retainage Support
• Payment Application by Line
• Construction
• On the Customers (AR303000) form, the EQUGRP customer has been created; the Pay by Line and Apply
Retainage check boxes are selected on the General tab for this customer.
• On the Account Groups (PM201000) form, the MATERIAL, LABOR, and SUBCON account groups have been
created.
• On the Non-Stock Items (IN202000) form, the LABOR item has been created.
• On the Billing Rules (PM207000) form, the TM billing rule has been created. The rule has three steps for
billing of transactions that are posted to MATERIAL, LABOR, or SUBCON account groups. The calculation
formula is the following: The amount of expense multiplied by 1.25 equals the billed amount for the
transaction.
• On the Projects (PM301000) form, the HOTEL project has been created with multiple project tasks and their
budgets. On the Summary tab of the form, the Standard option is selected in the Retainage Mode box, and
5.00 is specified in the Retainage (%) box of the Retainage section.

Process Overview
You will create a project task and assign the time and material billing rule to it on the Projects (PM301000) form.
You will then process a project transaction on the Project Transactions (PM304000) form to record the extra work,
and run project billing on the Projects form. Then you will release the generated pro forma invoice on the Pro Forma
Invoices (PM307000) form. Finally, you will release the related AR invoice with retainage on the Invoices and Memos
(AR301000) form

Step 1: Adding a Task with a Time and Material Billing Rule

Add a task to the project by doing the following:
1. On the Projects (PM301000) form, open the HOTEL project. On the Summary tab, notice the date in the Next
Billing Date box. You will need to process the transaction with a date before this date.
2. On the table toolbar of the Tasks tab, click Add Row, and add a new project task with the following settings:
• Task ID: 20
• Type: Cost and Revenue Task
• Description: Ad-hoc miscellaneous expenses
• Billing Rule: TM
• Status: Active
3. Click Save to save your changes to the project.

Step 2: Creating and Releasing a Project Transaction

Enter and process the project transaction by doing the following:
1. On the Project Transactions (PM304000) form, add a new record.
2. On the form toolbar, click Add New Record to create a new project transaction, and in the Summary area,
make sure PM is selected as the Module.
3. In the Description box, type Miscellaneous expenses.
4. On the Details tab, click Add Row, and specify the following transaction details:
• Project: HOTEL
• Project Task: 20
 Part 5: Project Invoices | 135

• Cost Code: 00-000

• Account Group: LABOR
• Inventory ID: LABOR
• UOM: HOUR
• Quantity: 1
• Billable: Selected
• Billable Quantity: 1
• Unit Rate: 45
• Amount: 45.00 (calculated automatically)
• Date: The date three days before Next Billing Date
5. Save the transaction.
6. On the form toolbar, click Release to release the project transaction.

Step 3: Running Project Billing

Perform billing for the entered project transaction as follows:
1. On the Projects (PM301000) form, open the HOTEL project.
2. On the form toolbar, click Run Project Billing.
The system opens the Pro Forma Invoices (PM307000) form with the pro forma invoice that was created,
which includes one line on the Time and Material tab. The billed amount in the line is 56.25 (which is
calculated by using the billing rule formula, 45 * 1.25, which is calculated by using the billing rule formula).
The retainage amount is calculated as the retainage percentage applied to the amount to invoice of the line
and equals 2.81.
3. On the form toolbar, click Remove Hold to assign the pro forma invoice the Open status, and then click
Release to release the pro forma invoice.
4. On the Financial tab, click the Edit button next to the AR Ref. Nbr. box to open the generated AR invoice on
the Invoices and Memos (AR301000) form. In the invoice, which opens, make sure that the invoice has one
line with an Ext. Price value equal to the sum of the Amount to Invoice value from the pro forma invoice
line (56.25) and a Retainage Amount of 2.81.

Figure: AR invoice with retainage

The retainage percent in the AR invoice line is calculated as Retainage Amount / Ext.
Price and thus may differ from the retainage percent of the pro forma line because of
rounding differences.
 Part 5: Project Invoices | 136

5. On the form toolbar, click Remove Hold, and then click Release to release the invoice.

You have billed a project for time and material and included the retainage amount in the invoice.
 Part 6: Project Management | 137

Part 6: Project Management

Lesson 25: Working with Daily Field Reports

Daily Field Reports: General Information

In the construction industry, many independent activities may take place on a project site and in the office. To
make sure that everyone is looking at the same data and that the data has been transferred from the field to the
office accurately, project managers and site supervisors use daily field reports.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create and assign an approval map for daily field reports
• Create a daily field report
• Add to the daily field report the following entities:
• Progress worksheets
• Labor time and activities
• Change requests
• Change orders
• Subcontractor activities
• Project issues
• Weather conditions
• Site visitors
• Email the daily field report

Applicable Scenarios
You create a daily field report to record observations, activities, and conditions that occur on a project site during a
working day.

Creation of Daily Field Reports

In Acumatica ERP Construction Edition, the daily field reports (DFRs) provide the members of a project team with a
single location for updates about daily project activities, such as employee activities or subcontractor activities, as
well as about daily weather observations, visitors to the site, and potential changes to a project budget.
You create a daily field report on the Daily Field Report (PJ304000) form. In the Project box, you specify the related
project, and in the Project Manager box, you select the employee who is responsible for managing the project and
authorized to approve the daily field report.
In the daily field report, you can enter information about linked change requests, subcontractor work, associated
project issues, visitors to the project site, weather conditions observed on the site, and activities of specific
employees.
 Part 6: Project Management | 138

A daily field report may be updated multiple times during the day, sometimes by different employees. You can
update a daily field report only if it has the On Hold status. If the daily field report has a different status, you need to
put the document on hold before you start updating it.

Related Labor Time and Reporting Activities

On the Labor Time and Activities tab of the Daily Field Report (PJ304000) form, you can add a row for each
employee time activity. In the row, you select the employee whose activity should be included in the daily field
report and specify the earning type, the project task, and the cost code for the activity. Also, you can enter the time
that the employee spent on the activity and specify whether this time is billable. You can enter multiple lines if the
employee performed different activities or if activities were performed by different employees.
The user can update or delete only time activity rows that have the Open status and that are not included in
employee time cards.

The Labor Time and Activities tab is available only if the Time Management feature is enabled on the
Enable/Disable Features (CS100000) form.

Related Progress Worksheets

On the Progress Worksheets tab of the Daily Field Report (PJ304000) form, you add cost budget lines and capture
the quantity of units used on-site during the working day. When you click Complete on the form toolbar of the Daily
Field Report form, the system creates the progress worksheet linked to the daily field report and saves this progress
worksheet with the On Hold status. For more information on progress worksheets, see Unit Tracking in Projects:
General Information.

Related Change Requests

If the Change Orders feature is enabled on the Enable/Disable Features (CS100000) form, on the Change Requests
tab of the Daily Field Report (PJ304000) form, you can associate a change request that was previously created for
the project with the daily field report. Also, while you are working on the Change Requests tab, you can click
Create New Change Request on the table toolbar. You can associate as many change requests as needed with a
daily field report.
As a result, the Change Requests (PM308500) form opens, with the project and customer copied from the daily field
report and unavailable for editing. When you save the change request, it is automatically associated with the daily
field report and listed in the table on the Change Requests tab of the Daily Field Report form.

Related Change Orders

If the Change Orders feature is enabled on the Enable/Disable Features (CS100000) form, on the Change Orders
tab of the Daily Field Report (PJ304000) form, you can associate a change order that was previously created for the
project with the daily field report by adding a new row to the table and selecting the change order number in the
Reference Nbr. column..
Also, while you are working on the Change Orders tab, you can click Create New Change Order on the table
toolbar. As a result, the Change Orders (PM308000) form opens, with the project and customer copied from the
daily field report and unavailable for editing. When you save the change order, it is automatically associated with
the daily field report and listed in the table on this tab.

Related Subcontractor Activities

On the Subcontractors tab of the Daily Field Report (PJ304000) form, you can add information about
subcontractors, which may include the number of workers who worked on site during the day, the number of hours
they worked, and the cost codes associated with the performed work.
 Part 6: Project Management | 139

Related Project Issues

On the Project Issues tab of the Daily Field Report (PJ304000) form, you can associate a project issue that was
previously created for the selected project with the daily field report by using the Add Row button on the form
toolbar. You can associate as many project issues as needed with a daily field report.
Also, while you are working on the Project Issues tab, you can click Create Project Issue on the form toolbar. As a
result, the Project Issue (PJ302000) form opens, with the project copied from the daily field report and unavailable
for editing. When you save the project issue, it is automatically associated with the daily field report and listed in
the table on this tab.

Related Photo Logs

On the Photo Logs tab of the Daily Field Report (PJ304000) form, you can associate a photo log that was previously
created for the project with the daily field report by using the Add Row button on the table toolbar. You can
associate as many photo logs as needed with a daily field report.
Also, you can click Create New Photo Log on the table toolbar of the Photo Logs tab. As a result, the Photo Log
(PJ305000) form opens, with the project copied from the daily field report and unavailable for editing. When you
save the photo log, it is automatically associated with the daily field report and listed in the table on this tab.
For each photo log selected in the table, a preview of its main photo (if any) is shown in the Main Photo Preview
area.

Related Notes
On the Notes tab of the Daily Field Report (PJ304000) form, you can report additional information for a day by using
the Add Row button on the table toolbar. You can type a description for the note and attach files to it.

Equipment Used on the Project

On the Equipment tab of the Daily Field Report (PJ304000) form, you can add a row for each piece of equipment
that was used on the project and specify the project task, the cost code, and the time for which the equipment
was utilized (as well as whether that time is billable). Each new row on this tab updates the time card for the
corresponding equipment; if no corresponding time card exists for this piece of equipment in the system, a new
time card is created.
You can update or delete lines that are not included in equipment time cards and lines associated with equipment
time cards with the On Hold status.

Weather Observations
On the Weather tab of the Daily Field Report (PJ304000) form, you can report weather conditions observed at the
project site during the day, such as sky condition, temperature, precipitation, wind, and site conditions. Each row
on the tab represents a weather record at a particular time. You can select the Delay check box to indicate that the
reported weather conditions may cause a delay in the project delivery.

Visitors to the Site

On the Visitors tab of the Daily Field Report (PJ304000) form, you can specify information about visitors to the
project site. You can specify the type of the visitor, the name of the visiting person, the name of their company (if
applicable), the time when the visitor arrived and departed, the purpose of the visit, the visited area or inspected
entity, and an additional description.
 Part 6: Project Management | 140

Related Employee Expenses

If the Expense Management feature is enabled on the Enable/Disable Features (CS100000) form, on the Employee
Expenses tab of the Daily Field Report (PJ304000) form, you can report information about day-to-day expenses an
employee incurs while working on the project. To link an existing expense receipt to a daily field report, you should
click Add Row on the table toolbar and then select an expense receipt. You can associate as many expense receipts
as needed with a daily field report.
Also, while you are working on the Employee Expenses tab, you can click Create New Expense Receipt on the
table toolbar. As a result, the Expense Receipt (EP301020) form opens, with the project copied from the daily field
report and unavailable for editing. When you save the expense receipt, it is automatically associated with the daily
field report and listed in the table on this tab.

Approval of Daily Field Reports

If the Approval Workflow feature is enabled on the Enable/Disable Features (CS100000) form, and an approval
workflow is configured in the system for daily field reports, a daily field report is assigned the Pending Approval
status when you take the document off hold.
The authorized approver can approve the daily field report by using the Approve menu command on the form
toolbar of the Daily Field Report form, or the approver can use the Approvals (EP503010) form to approve daily field
reports along with documents of other types. If the approver rejects the daily field report, the document is assigned
the Rejected status. Then it may be put on hold, updated as needed, and submitted for approval again.

Daily Field Reports: To Configure Approval for Daily Field Reports

This activity will walk you through the process of configuring the approval map for daily field reports.

Story
Suppose that the ToadGreen company needs to keep daily field reports in the system. These reports need to be
approved by managers. Acting as a system administrator, you need to create the approval map for the daily field
reports and specify the daily field report settings in the system.

Configuration Overview
For the purposes of this activity, the Construction and Construction Project Management features have been
enabled on the Enable/Disable Features (CS100000) form.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a system administrator by using the gibbs username and the 123 password.
2. Open the Enable/Disable Features (CS100000) form, and on the form toolbar, click Modify.
3. In the Platform group of features, select the Approval Workflow check box.
4. On the form toolbar, click Enable.

Step: Creating an Approval Map for Daily Field Reports

In this step, you will create the approval map to be used for daily field reports. Do the following:
 Part 6: Project Management | 141

1. Open the Assignment and Approval Maps (EP205500) form.

2. On the form toolbar, click Add Approval Map.
The system opens the Approval Maps (EP205015) form.
3. In the Name box of the Summary area, type DFR Approval.
4. In the Entity Type box, select Daily Field Report.
5. On the pane toolbar of the Steps pane, click Add Step.
The system adds a step with a rule.
6. In the Steps pane, click the added rule, and then on the Conditions tab of the right pane, do the following:
a. In the Description box, type PMApproval.
b. In the table, click Add Row, and in the row, specify the following settings:
a. Entity: Daily Field Report
b. Field Name: Project Manager
c. Condition: Is Not Empty
7. On the Rule Actions tab of the right pane, specify the following settings:
a. Approver: Employee from Document
b. Employee: ((DailyFieldReport.ProjectManagerId)) (select Daily Field Report > Project Manager)
c. On Approval: Approve Document
8. Click Save on the form toolbar.
9. On the General tab of the Project Management Preferences (PJ101000) form, select DFR Approval, the
approval map that you created, in the DFR Approval Map box.
10.On the form toolbar, click Save to save your changes.

You have configured the approval map for the daily field reports.

Daily Field Reports: Process Activity

This activity will walk you through the process of working with a daily field report.

Story
Suppose that on February 15, 2023, Ernest Smith, a construction foreman in the ToadGreen company, spent a day
on the construction site of the Italian restaurant that the company is building for the Italian Company. During the
day, he has submitted a change order and made notes about subcontractor activities, weather conditions, visitors,
and other information. Also, he has taken photos to support his report about weather conditions. At the end of
the day, Ernest creates a daily field report, adds notes, and sends the daily field report for approval to the project
manager.
Acting as the construction foreman, you will create and process the daily field report and add all needed
information to it.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The following features have been enabled on the Enable/Disable Features (CS100000) form:
• Construction
 Part 6: Project Management | 142

• Construction Project Management

• Time Management
• Change Orders
• On the Projects (PM301000) form, the ITALIAN2 project has been created with multiple project tasks.
• On the Vendors (AP303000) form, the SUNTECH - Suntech Concrete and ACMEDO - Acme Doors & Glass
subcontractors have been defined.
• On the Employees (EP203000) form, the EP00000033 - Ellen Watson employee has been defined.
• On the Customers (AR303000) form, the ITACOM - Italian Company customer has been created.

Process Overview
You will create a daily field report on the Daily Field Report (PJ304000) form. You will then add a change order,
subcontractor activities, weather conditions, and visitors on the appropriate tabs of the form. To finish the
processing of the daily field report, you will complete it to submit the report for approval. Finally, you will approve
the daily field report.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a construction foreman by using the epsmith username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 4/15/2023. If a different date is displayed, click the Business Date menu
button, and select 4/15/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
3. Download the DFR_weather1.jpg and DFR_weather2.jpg files to your device.

Step 1: Creating the Daily Field Report

Create the daily field report as follows:
1. On the Daily Field Report (PJ304000) form, add a new record.
2. In the Summary area, specify the following settings:
• Project: ITALIAN2
• Project Manager: Ellen Watson (inserted automatically)
3. On the form toolbar, click Save.
The daily field report is saved with the On Hold status. Now you can add the needed information to the
report on the appropriate tabs of the form.

Step 2: Adding a Change Order

To add a change order to the daily field report, do the following:
1. While you are still viewing the daily field report on the Daily Field Report (PJ304000) form, on the Change
Orders tab, click Create New Change Order on the table toolbar.
2. On the Change Orders (PM308000) form, which opens in a pop-up window, type Extra costs in the
Description box.
3. On the Cost Budget tab, add a line with the following settings:
• Project Task: 08
• Cost Code: 08-000
 Part 6: Project Management | 143

• Account Group: SUBCON

• Description: Extra costs, openings
• Quantity: 10
• Unit Rate: 1200
4. On the form toolbar, click Remove Hold, and then return to the daily field report on the Daily Field Report
form.
5. Press Esc to refresh the form, and make sure that the change order has appeared on the Change Orders tab
of the daily field report.

Step 3: Registering Subcontractor Activities

Register subcontractors’ activities in the daily field report as follows:
1. While you are still viewing the daily field report on the Daily Field Report (PJ304000) form, on the
Subcontractors tab, click Add Row on the table toolbar, and specify the following settings in the row:
• Vendor ID: SUNTECH
• Project Task: 03
• Cost Code: 03-000
• Number of Workers: 3
• Arrived: 09:30 AM
• Departed: 06:30 PM
2. Add one more row with the following settings:
• Vendor ID: ACMEDO
• Project Task: 06
• Cost Code: 06-000
• Number of Workers: 2
• Arrived: 08:00 AM
• Departed: 05:00 PM
3. On the form toolbar, click Save.

Step 4: Reporting Weather Conditions

In this step, you will add records to reflect the weather conditions of the day. Do the following:
1. While you are still viewing the daily field report on the Daily Field Report (PJ304000) form, on the Weather
tab, click Add Row on the table toolbar, and specify the following settings in the added row:
• Time Observed: 07:37 AM
• Sky: Cloudy
• Temperature: 60
• Temperature Perceived: Warm
• Precipitation Description: None
• Wind Description: None
• Site Conditions: Dry
• Delay: Cleared
• Description: Normal weather, no delay
2. Save your changes.
3. Add a second row, and specify the following settings:
 Part 6: Project Management | 144

• Time Observed: 04:30 PM

• Sky: Few Clouds
• Temperature Perceived: Mild
• Precipitation Description: None
• Wind Description: Calm
• Site Conditions: Dry
• Delay: Cleared
• Description: Warm, dry day
4. Save your changes.
5. In the table, at the beginning of the first row, click the button in the Files column (one of the unlabeled
columns with icons as column headers) to open the Files dialog box. In the dialog box, click Browse, select
the DFR_weather1.jpg file, click Upload, and close the dialog box.
6. In the table, at the beginning of the second row, click the button in the Files column to open the Files dialog
box. In the dialog box, click Browse, select the DFR_weather2.jpg file, click Upload, and close the dialog
box.

Step 5: Registering Visitors and Completing the Report

To add records about site visitors, do the following:
1. While you are still viewing the daily field report on the Daily Field Report (PJ304000) form, on the Visitors
tab, click Add Row on the table toolbar.
2. In the new row, specify the following settings:
• Visitor Type: Customer
• Name: Adam Smith
• Business Account: ITACOM
• Arrived: 5:00 PM
• Departed: 6:00 PM
• Purpose of Visit: Visiting construction site for progress control
• Area Visited/Inspected Entity: Basement of site
3. Add a second row with the following settings:
• Visitor Type: Owner
• Name: Ellen Watson
• Arrived: 9:30 AM
• Departed: 6:00 PM
• Purpose of Visit: Review proposed changes
• Area Visited/Inspected Entity: Subfloor of site
• Description: Changes approved
4. Save your changes.
5. On the form toolbar, click Complete.
The system changes the report’s status to Pending Approval.
6. On the Approvals tab, make sure Ellen Watson is specified as the approver of the daily field report.
7. Sign out from the system.
 Part 6: Project Management | 145

Step 6: Approving the Daily Field Report

To approve the daily field report submitted by the construction foreman, Ernest Smith, perform the following steps
1. Sign in as a construction project manager by using the ewatson username and the 123 password.
2. On the Daily Field Report (PJ304000) form, open the daily field report that you have prepared earlier, while
acting as a construction foreman.
3. On the form toolbar, click Approve. On the Approvals tab, notice that the system has changed the approval
status of the daily field report to Approved, as shown in the following screenshot.

Figure: Daily field report submitted for approval

You have prepared the daily field report and approved it.

Lesson 26: Working with Project Issues and Change Requests

Project Issue: General Information

In Acumatica ERP, project issues are used for tracking and reporting on all activities related to various issues
discovered on a construction site. Based on a project issue, a request for information or a change request may be
created.

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure project management classes that may be used to ease the creation of project issues
• Define project issue types
• Report project issues
• Convert project issues to change requests
• Convert project issues to requests for information
• Mass-assign project issues to owners

Applicable Scenarios
You create and process a project issue when an unexpected problems occur on a construction site.
 Part 6: Project Management | 146

Project Issue Processing

In general, the Project Issue (PJ302000) form is the starting point for creating a project issue. In a newly created
project issue, you should first specify the following settings:
• The summary, which briefly describes the project issue
• The project to which the project issue relates
• The project management class that provides the default settings for the newly created project issues
Then on the Details tab, you provide the detailed description. You can also create a time activity or a drawing log
for the project issue.
Aer you have specified the details, you process a project issue in any of the following ways:
• If more information is required to resolve the issue, you click Convert to RFI on the form toolbar. The
system creates a request for information for the project issue, and opens it on the Request for Information
(PJ301000) form.
• If the project issue introduces changes to the project budget, you click Convert to Change Request on
the form toolbar. The system creates a change request for the project issue, and opens it on the Change
Requests (PM308500) form.

Project Issue: Implementation Activity

In the following implementation activity, you will learn how to prepare the system for creating and processing
project issues.

Story
Suppose that you, a system administrator of a construction company, ToadGreen Building Group, need to define
the types of project issues for the company. You need to track design issues, violations of safety regulations, and
problems with equipment, materials, or people. You also need to configure a project management class that is
going to be used for creating project issues.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction and Construction Project Management
features have been enabled in the Projects group of features.
• On the Project Management Classes (PJ201000) form, the FIELD class has been defined with the Project
Issues check box selected in the Use For section.

System Preparation
To prepare to perform the instructions of the activity, sign in to the system as a system administrator by using the
gibbs username and the 123 password.

Step 1: Specifying System Settings for Project Issues

To specify project issue preferences, do the following:
1. Open the Project Management Preferences (PJ101000) form.
 Part 6: Project Management | 147

2. In the Project Issue Settings section of the General tab, in the Project Issue Numbering Sequence box,
make sure PROISSUE is specified.
3. In the Project Issue Type table, click Add Row, and specify the following settings:
• Project Issue Type: Accident
• Description: Accidents and emergencies
4. Add three more rows with the following sets of values.

Project Issue Type Description

Safety Violation Violation of safety regulations

Design Issue Design issues

Resource Problems with equipment, materials,

or people

5. Save your changes.

Step 2: Configuring a Project Management Class

Review the project management class that has been configured for processing project issues by doing the
following:
1. On the Project Management Classes (PJ201000) form, open the FIELD class.
2. In the Use For section, make sure the Project Issues check box is selected.
3. On the Details tab, make sure the Answer Days Default (under Project Issue Settings) is set to 5.

You have prepared the system for processing project issues.

Project Issue: To Create a Change Request from a Project Issue

This activity will walk you through the process of creating a project issue and converting a request for information
to a change request.

Story
Suppose that on 3/21/2023, a design issue has occurred on the construction site of the Beach Hotel and
Condominiums project that the ToadGreen company is working on: A subcontractor put a hole in a wall when
stacking materials. The project engineer has reported that one day is necessary to fix the issue, and it will cost $200.
Acting as a ToadGreen construction project manager, you need to create the project issue in the system, and then
convert it to a change request.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction feature have been enabled.
• On the Project Management Classes (PJ201000) form, the FIELD class has been defined with the Project
Issues check box selected in the Use For section.
 Part 6: Project Management | 148

• On the Projects (PM301000) form, the HOTEL project has been configured; the project tasks have been
created, along with the related cost and revenue budget.

Process Overview
You will create a project issue on the Project Issue (PJ302000) form. You will then convert it to a change request for it
on the Change Requests (PM308500) form.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a construction project manager by using the ewatson username and the 123
password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 3/21/2023. If a different date is displayed, click the Business Date menu
button, and select 3/21/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Creating the Project Issue

To create the project issue, do the following:
1. On the Project Issue (PJ302000) form, add a new record.
2. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
• Summary: Hole in the wall needs to be patched
• Project: HOTEL
• Class ID: FIELD
• Due Date: 3/28/2023
• Project Issue Type: Accident
• Owner: Ricky Thompson
• Schedule Impact: Selected
• Schedule Impact (days): 1
• Cost Impact: Selected
• Cost Impact: 2000
3. On the Details tab, type the following information: Subcontractor put a hole in the wall
when stacking materials, and the hole needs to be patched and finished as
soon as possible.
4. Save the project issue.

Step 2: Converting the Project Issue to a Change Request

Create a change request based on the project issue, by doing the following:
1. While you are still viewing the Hole in the wall needs to be patched project issue on the Project Issue
(PJ302000) form, click Convert to Change Request on the form toolbar.
The Change Requests (PM308500) form opens with the created change request, with settings copied from
the project issue. In the Project Issue box of the Summary area, the ID of the original project issue is
specified.
2. On the form toolbar, click Remove Hold.
 Part 6: Project Management | 149

3. Click the Edit button next to the Project Issue box in the Summary area to open the original project issue.
4. On the Project Issue (PJ302000) form, which opens with the Hole in the wall needs to be patched project
issue, make sure that the project issue now has Converted to CR in the Status box (as shown in the following
screenshot). The link to the related change request is displayed in the Converted To box.

Figure: Project issue that has been converted to a change request

You have converted the project issue to a change request, which can now be processed further to record the
expenses to the cost budget of the project.

Lesson 27: Working with Requests for Information

Requests for Information: General Information

Requests for information (RFIs) are used for obtaining information that is not present in (or cannot be inferred
from) the contract documents. An RFI is usually submitted by a general contractor or subcontractor, and a design
or engineering professional is usually specified as the contact person who is expected to provide the needed
information.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create and process a new request for information
• Create a new request for information that relates to another request for information
• Create a change request from a request for information
• Mass-assign owners to requests for information

Applicable Scenarios
You process a request for information in the system in the following cases:
• Outgoing RFI: When some needed information is not present in the documents related to a project, and your
company requests certain information from an external subject matter expert
 Part 6: Project Management | 150

• Incoming RFI: When someone, usually a subcontractor, requests particular information about the project
from your company

Processing Workflow of an Outgoing Request for Information

In the system, the processing of an outgoing request for information generally consists of the following steps:
1. Entering the request for information into the system: The project manager creates an RFI, which has the
New status, on the Request for Information (PJ301000) form.
2. Opening the request for information: The project manager sends emails with the request to subject matter
experts. The RFI has the Open status, indicating that the process has been started.
3. Closing the request for information: When the necessary information has been sent, the owner of the
document closes the RFI by changing its status to Closed, indicating that the process has been completed,
or by creating a change request from the RFI. The manager also specifies the reason for closing of the
request.

Processing Workflow of an Incoming Request for Information

In the system, the processing of an incoming request for information generally consists of the following steps:
1. Entering the request for information into the system: The project manager creates an RFI with the Incoming
check box selected and the person who is responsible for the answer specified in the Owner box of the
Request for Information (PJ301000) form. The request for information has the New status.
2. Opening the request for information: The project manager opens the request by changing its status to Open,
indicating that the process has been started. The manager also specifies the reason for opening of the
request.
3. Closing the request for information: When the necessary information has been sent, the owner of the
document closes the RFI by changing its status to Closed, indicating that the process has been completed,
or by creating a change request from the RFI. The manager also specifies the reason for closing of the
request.

Requests for Information: To Process an Outgoing Request for Information

This activity will walk you through the processing of both an incoming request for information (RFI) and the
corresponding outgoing request for information.

Story
Suppose that the ToadGreen company is building a hotel for the Equity Group Investors customer. Then suppose
that the customer has requested a specification for the hotel roofing. In order to provide this specification, the
ToadGreen project engineer (Ricky Thompson) needs to request these specifications from Balaji Rajan, an engineer
of the subcontractor company that performs this part of the work for the project.
Acting as the ToadGreen project engineer, you need to create an incoming request for information from the
subcontractor, and then create the related outgoing request for information for an external engineer who can
provide the requested specifications. Aer the specifications are received, you send them to a project engineer for
review.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
 Part 6: Project Management | 151

• On the Enable/Disable Features (CS100000) form, the Construction and Construction Project Management
features have been enabled in the Projects group.
• On the Project Management Classes (PJ201000) form, the DOCRFI class has been defined with the Request
for Information check box selected in the Use For section.
• On the Projects (PM301000) form, the HOTEL project for the EQUGRP customer has been created. Also, the
DL-000001 drawing log with the roofing.gif file for the HOTEL project has been added on the Drawing Logs
(PJ403000) form for this project.
• On the Customers (AR303000) form, the EQUGRP - Equity Group Investors account has been created. On the
Contacts tab of this form, a contact for Jessica Drake has been added.
• On the Contacts (CR302000) form, a contact record for Balaji Rajan has been created.

Process Overview
You will create an incoming request for information on the Request for Information (PJ301000) form. Then you will
create from this request an outgoing request for information on the same form. Then you will link the drawing log
with the needed information to the request and send an email to the responsible person by using the Email Activity
(CR306015) form.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as an engineer by using the jwagner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 2/15/2023. If a different date is displayed, click the Business Date menu
button, and select 2/15/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system during this business date.

Step 1: Creating an Incoming Request for Information

To create an incoming request for information, do the following:
1. On the Request for Information (PJ301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Project: HOTEL
• Business Account: EQUGRP
• Contact: Jessica Drake
• Class ID: DOCRFI
• Summary: Need specifications on hotel roofing
• Incoming: Selected (the request has been received from outside the company)
• Priority: High
• Owner: Ricky Thompson
• Design Change: Selected
3. In the Question pane on the Details tab, type the following information: Please provide the hotel
roofing specifications.
4. Save the request for information.
5. On the table toolbar, click Open. The system changes the status in the Status box to Open.

You have created the incoming request for information.

 Part 6: Project Management | 152

Step 2: Requesting Information from an External Expert

To create an outgoing request for information from the incoming one, do the following:
1. While you are still viewing the created request for information on the Request for Information (PJ301000)
form, click Convert to Outgoing RFI on the form toolbar. The system creates the new request for
information and opens it on the same form.
2. In the Contact box, select Balaji Rajan, and save your changes.
Outgoing requests for information come from inside the company and are addressed to external experts.
Note that the link to the original incoming RFI (which you created in Step 1) is displayed in the Link to
Incoming RFI box, as shown in the following screenshot.

Figure: Outgoing request for information

3. Click Email on the form toolbar.

The system opens the Email Activity (CR306015) form with the appropriate contact, Balaji Rajan, specified in
the To box.
4. On the Message tab, specify the following text: Please provide the specifications for
hotel roofing.
5. On the form toolbar, click Send to send the email. The system closes the form and returns to the outgoing
request for information on the Request for Information form. Notice that the Activities button on the form
title bar now shows that one activity has been attached to the request for information.
Suppose that Balaji Rajan replied to the email and attached a new drawing for the hotel roofing.
6. On the table toolbar of the Drawings tab, click Link Drawing.
 Part 6: Project Management | 153

7. In the Link Drawing dialog box, which opens, select the unlabeled check box for the DL-000001 drawing log
with the Hotel roofing specification title, and then click Link & Close. The system closes the dialog box and
adds a row with the drawing log on the Drawings tab.
8. On the Details tab, in the Answer pane, type See the linked drawing, and save your changes.
9. Click Email on the form toolbar.
10.On the Email Activity form, which opens in a pop-up window, do the following:
a. In the To box, remove Balaji Rajan, and add Ricky Thompson, who needs to review the materials.
b. Click Attach on the form toolbar.
c. In the Attach Files dialog box, which opens, select the unlabeled check box in the row with the DL-000001
drawing log for the roofing.gif file, and click Attach.
d. Click Send on the form toolbar.

You have processed the outgoing request for information. Aer the responsible person reviews the provided
information, the request for information can be closed or converted to a change request.

Requests for Information: To Create a Request for Information from a Project Issue

This activity will walk you through the process of creating a request for information from a project issue.

Story
Suppose that a design issue has been discovered on the construction site of the Beach Hotel and Condominiums,
a project that the ToadGreen company is working on: Because of the unstable terrain, the paving should be placed
differently. The engineer has reported that the issue will take three days to be resolved and it will cost $60,000.
Acting as a construction foreman, you need to enter the project issue in the system, and then you need to clarify
which paving material needs to be used by processing a request for information for the project issue.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction and Construction Project Management
features have been enabled in the Projects group of features.
• On the Project Management Classes (PJ201000) form, the FIELD class has been defined with the Project
Issues check box selected in the Use For section of the Summary area.
• On the Projects (PM301000) form, the HOTEL project has been created with multiple project tasks.
• On the Employees (EP203000) form, the EP00000032 – Ricky Thompson employee record has been created.
• On the Vendors (AP303000), the SUNTECH subcontractor has been created.

Process Overview
You will create the project issue on the Project Issue (PJ302000) form. You will then convert it to a request for
information on the Request for Information (PJ301000) form and send the email to the responsible person on the
Email Activity (CR306015) form.

System Preparation
To prepare to perform the instructions of this activity, do the following:
 Part 6: Project Management | 154

1. Sign in to the system as a construction foreman by using the epsmith username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 2/15/2023. If a different date is displayed, click the Business Date menu
button, and select 2/15/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Creating the Project Issue

To create the project issue, do the following:
1. Open the Project Issue (PJ302000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
• Summary: Paving should be replaced
• Project: HOTEL
• Class ID: FIELD
• Due Date: 2/22/2023
• Owner: Ricky Thompson
• Project Issue Type: Design Issue
• Schedule Impact: Selected
• Schedule Impact (days): 3
• Cost Impact: Selected
• Cost Impact: 60000
3. On the Details tab, type the following information: Due to unstable terrain, the paving
needs to be laid differently. Refer to the updated site plan.
4. Save the project issue.
5. On the Drawings tab, click Link Drawing on the table toolbar.
6. In the Link Drawing dialog box, which opens, select the check box in the unlabeled column for the drawing
log with the Site plan title, and click Link & Close to link the drawing log and close the dialog box.
7. Save your changes.

Step 2: Converting the Project Issue to a Request for Information

To convert the issue to the request for information, do the following:
1. While you are still viewing the Paving should be replaced project issue on the Project Issue (PJ302000) form,
on the form toolbar, click Convert to RFI.
The Request for Information (PJ301000) form opens with the new request for information. The system has
copied the settings from the original project issue.
2. In the Summary area, specify the following settings:
• Business Account: SUNTECH (the subcontractor to perform the work)
• Contact: Ally Ralts
• Class ID: DOCRFI
• Owner: Ricky Thompson
 Part 6: Project Management | 155

• In the Question pane on the Details tab, add the following text: What paving material should
be used?
3. Save your changes. Notice that the link to the original project issue is displayed in the Converted From box,
as shown in the following screenshot.

Figure: Request for information created based on the project issue

4. On the form toolbar, click Email. The Email Activity (CR306015) form opens in a pop-up window. The contact
specified for the RFI is the default recipient of the email.
5. On the Message tab, type What paving material should be used?.
6. Click Send on the form toolbar to send the email, close the form and return to the request for information.

You have entered the project issue and converted it to a request for information. Aer the needed information is
received, you could create a change request from this project issue or close the request.

Lesson 28: Working with Photo Logs

 Part 6: Project Management | 156

Photo Logs: General Information

In the construction industry, field superintendents and other employees may use mobile devices to take progress
photos, and then they may need to store and share those photos by using a secure online service. In Acumatica ERP
Construction Edition, you can create photo logs. You can associate each photo log with a particular project and,
optionally, a project task.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create a photo log
• Upload photos to the photo log
• Download a ZIP archive with all the photos and files of the photo log
• Send an email with all the photos and files of the photo log
• Search for a photo log or a particular photo in the system

Applicable Scenarios
You create a photo log when you have any number of photos taken at a construction site, and you want to associate
with one another and keep them for a project or project task.

Preparation to Use Photo Logs

Before you can starting using photo logs, numbering sequences should be specified for both photo logs and photos
on the Photo Log Preferences (PJ103000) form.
On the Status tab of this form, you can also define custom statuses for photo logs. The N/A status, which is the only
predefined status in the system, is specified by default for a new photo log. This status cannot be deleted, but you
can change its name and description, if needed.
On the Attributes tab of the form, you can specify the list of attributes that will be available for individual photos in
a photo log. When a user adds a photo in the photo log, the user specifies the appropriate attribute values for the
photo.

Creation of a Photo Log

You can create a photo log by using the Photo Log (PJ305000) form. This form opens when you click Add New
Record on the form toolbar of the Photo Logs (PJ405000) form.
On the Photo Log form, you need to specify the project for which the photo log is being created, the date, and the
status. Also, you can specify a project task and a brief description of the photo log.
On the Photos tab, you need to click Add Row on the table toolbar to open the Photo (PJ305010) form, through
which you can upload a photo and add it to a photo log. To add the photo to the photo log, you click the Upload
Photo button next to the Photo Log ID box (which the system initially fills in with the ID of the photo log from
which you added the photo), select a photo in the Upload New Photo dialog box, click Upload, and then save your
changes. You can add any number of photos to a photo log.
In the Summary area of the Photo form, if you select the Main Photo check box, the photo is displayed in the
preview area on the Photo Logs form as the main photo of the entire photo log. Only one photo can be marked as
the main photo for a photo log. If no photo is marked as the main photo of a photo log, the preview area remains
empty.
 Part 6: Project Management | 157

Use of Photo Logs

When working with photo logs on the Photo Logs (PJ405000) inquiry form, you can also do the following:
• Narrow the list of photo logs by using the Project and Project Task boxes in the Selection area.
• Download photos from selected photo logs to a single ZIP archive by selecting the unlabeled check boxes
for the needed photo logs in the table in the right pane and clicking Export Photo Logs on the form toolbar.
• Email photos from selected photo logs as an email attachment by selecting the unlabeled check boxes for
the needed photo logs in the table in the right pane and clicking Email Photo Logs on the form toolbar.
If you delete a photo log, all photos included in the photo log are also deleted.
To move a photo from one photo log to another, you can select the destination photo log in the Photo Log ID box
for the photo on the Photo (PJ305010) form and save your changes.

Photo Logs: Implementation Activity

This activity will walk you through the process of specifying the statuses that can be used for photo logs.

Story
Suppose that the ToadGreen company needs to keep photo logs in the system. Acting as a system administrator,
you need to define the statuses to be used for photo logs.

Configuration Overview
For the purposes of this activity, the following features have been enabled in the Projects group of features on the
Enable/Disable Features (CS100000) form:

• Construction
• Construction Project Management

System Preparation
To prepare to perform the instructions of this activity, sign in to the system as a system administrator by using the
gibbs username and the 123 password.

Step: Specifying Photo Log Settings

Specify the photo log settings by doing the following:
1. Open the Photo Log Preferences (PJ103000) form.
2. On the Status tab, in the Status column of the only row, change the settings of the N/A predefined status as
follows:
• Status: In Progress
• Description: Work in progress
This is the status that the system will assign by default to a newly created photo log.
3. On the table toolbar, click Add Row, and specify the following settings in the added row:
• Status: Not Started
• Description: Work not started
 Part 6: Project Management | 158

4. On the table toolbar, click Add Row, and specify the following settings in the added row:
• Status: Completed
• Description: Work completed
5. Click Save on the form toolbar to save the settings.

You can now create photo logs in the system.

Photo Logs: Process Activity

This activity will walk you through the process of working with a photo log.

Story
Suppose that on February 15, 2023, the construction foreman has inspected the project site and taken progress
photos. Acting as the construction foreman, you will create a photo log for the particular project and project task
and upload the photos to this photo log. Then you will send the photos to the responsible person.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction and Construction Project Management
features have been enabled.
• On the Projects (PM301000) form, the HOTEL project has been created, and the project tasks for the project
have been specified on the Tasks tab, including the 02 – SITEWORK project task.

Process Overview
You will create the photo log on the Photo Log (PJ305000) form and upload the progress photos to the log by using
the Photo (PJ305010) form. You will then download all the photos to your device by using the Photo Logs (PJ405000)
form. From this form, you will also open the Email Activity (CR306015) form to send an email with the ZIP archive.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as a construction foreman by using the epsmith username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 3/15/2023. If a different date is displayed, click the Business Date menu
button, and select 3/15/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
3. Download the Photo_Log_Concrete_Headwall.jpg, Photo_Log_Erosion.jpg, and Photo_Log_Culvert.jpg files to
your device.

Step 1: Creating a Photo Log

To create the photo log, do the following:
1. Open the Photo Logs (PJ405000) form.
2. On the form toolbar, click Add New Record, and on the Photo Log (PJ305000) form that opens, specify the
following settings in the Summary area:
 Part 6: Project Management | 159

• Date: 3/15/2023
• Project: HOTEL
• Project Task: 02 - SITEWORK
• Description: Problem with the drainage system
• Status: In Progress (inserted automatically)
3. On the form toolbar, click Save.
Notice that an identifier has been automatically generated for the photo log. The system generates this
identifier in accordance with the numbering sequence specified on the Photo Log Preferences (PJ103000)
form.

Step 2: Uploading Photos to the Photo Log

Upload the photos to the photo log by doing the following:
1. While you are still viewing the created photo log on the Photo Log (PJ305000) form, upload first photo by
doing the following:
a. In the le pane on the Photos tab, click Add Row on the table toolbar.
b. On the Photo (PJ305010) form, which opens, click the Upload Photo button, which is next to the Photo
Log ID box.
c. In the Upload New Photo dialog box, which opens, click Choose File, select the
Photo_Log_Concrete_Headwall.jpg file to upload, and click Upload.
d. On the form toolbar of the Photo form, click Save & Close to save the uploaded photo and return to the
Photo Log form.
On the Photos tab, notice that the line for the uploaded photo is now listed in the table. The right pane
shows the photo preview.
2. Upload a second photo as follows:
a. In the le pane on the Photos tab, click Add Row on the table toolbar.
b. On the Photo (PJ305010) form, which opens, click Upload Photo.
c. In the Upload New Photo dialog box, which opens, click Choose File, select the
Photo_Log_Culvert.jpg file to upload, and click Upload.
d. On the form toolbar of the Photo form, click Save & Close to save the uploaded photo and return to the
Photo Log form.
3. Upload a third photo by doing the following:
a. In the le pane on the Photos tab, click Add Row on the table toolbar.
b. On the Photo (PJ305010) form, which opens, click Upload Photo.
c. In the Upload New Photo dialog box, which opens, click Choose File, select the
Photo_Log_Erosion.jpg file to upload, and click Upload.
d. On the form toolbar of the Photo form, click Save & Close.
4. Select the Main Photo check box in the row with the Photo_Log_Culvert photo to indicate that this photo
must be displayed in the preview area on the Photo Logs form as the main photo of this photo log, as the
following screenshot shows.
 Part 6: Project Management | 160

Figure: Photo log with uploaded photos

5. Save your changes.

You have created a photo log with multiple photos for the project.

Step 3: Sending an Email with the Photos

To send the email, do the following:
1. Open the Photo Logs (PJ405000) form.
2. In the right pane, select the Included check box in the row of the photo log you have created.
3. On the form toolbar, click Email.
The system opens the Email Activity (CR306015) form with a single ZIP file attached. (Notice that the number
of attached files is indicated by the number next to the Files button on the form title bar.) The ZIP file
contains all the photos (and any attached files) associated with the selected photo log. The automatically
generated subject of the email includes information about the photo log and the related project.
4. In the To box, select Ricky Thompson.
5. On the form toolbar, click Send. The system sends and email, closes the form, and returns to the Photo Logs
(PJ405000) form.
6. In the table, click the link to the photo log that you have created in the Photo Log ID column.
7. On the Photo Logs (PJ405000) form, select Completed in the Status box, and save your changes.

You have created the photo log an uploaded photos.

Lesson 29: Working with Drawing Logs

Drawing Logs: General Information

A drawing log is a collection of drawings and designs related to a project. A member of a project team can create
a drawing log, specify all relevant settings of the drawing log, and upload a drawing or a group of drawings to the
drawing log.
 Part 6: Project Management | 161

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure drawing logs and set up disciplines and statuses
• Create drawing logs
• Upload and download images linked to drawing logs
• Link requests for information and project issues to existing drawing logs
• Email drawings and requests for information
• Create revisions of drawing logs

Applicable Scenarios
You create a drawing log when a new file with a drawing, design, or sketch needs to be associated with a project
and no drawing log has already been created for the project.

Drawing Log Creation

You can create a drawing log on one of the following forms:
• Drawing Log (PJ303000): On this data entry form, you create one drawing log and specify all of its settings.
• Drawing Logs (PJ403000): On this inquiry form, you can view a list of drawing logs and initiate the creation of
a drawing log.
For a newly created drawing log, you specify a discipline—that is, a field or area in construction used for
categorizing drawing log documents.
If any changes have been made to the initial drawing, you can update the drawing by uploading a new file version
to the existing drawing log or creating a new revision of the drawing. If the uploaded drawing is an update of a
previous drawing in the log, you should specify the revision number, which indicates the up-to-date version of the
drawing.
Additionally, you can upload sketches (that is, dras of drawings). When you upload a sketch, you should specify
the sketch number in the Sketch box.
You can download multiple images attached to a drawing log document as a zip file by clicking Export Drawing
Log on the form toolbar of the Drawing Log (PJ303000) form or by selecting the unlabeled check box for the needed
drawing log on the Drawing Logs (PJ403000) form and then clicking Export Drawing Log on the form toolbar.

Related RFI and Project Issues

To link a drawing log to a request for information (RFI), you click Create RFI on the More menu of the Drawing Log
(PJ303000) form. The system creates the RFI, whose settings you specify, and links this RFI to the drawing log. When
you send an email with the RFI, you can attach drawings from the linked drawing log to the email. Also, from the
Drawing Logs (PJ403000) form, you can create an RFI that is linked to multiple drawing logs.

From the Drawing Log form, you can create a project issue linked to a particular drawing log. To do this, you click
Create Project Issue on the More menu. The system creates the project issue, whose settings you specify, and links
this project issue to the drawing log. When you send an email with the project issue, you can attach drawings from
the linked drawing log to the email. Also, from the Drawing Logs form, you can create a project issue that is linked
to multiple drawing logs.
 Part 6: Project Management | 162

Drawing Logs: Implementation Activity

This activity will walk you through the process of configuring drawing logs and defining their disciplines and
statuses.

Story
Suppose that the ToadGreen company needs to maintain drawing logs in the system. Acting as a system
administrator, you need to perform the necessary configuration in the system.

Configuration Overview
For the purposes of this activity, the Construction and Construction Project Management features have been
enabled on the Enable/Disable Features (CS100000) form.

System Preparation
Sign in to the system as a system administrator by using the gibbs username and the 123 password.

Step: Specifying the Settings to Be Used for Drawing Logs

To configure the drawing log settings, do the following:
1. Open the Drawing Log Preferences (PJ102000) form.
2. On the Disciplines tab, review the predefined list of disciplines, and make sure that there is a line with the
Architectural discipline specified and the Active check box selected in this line.
3. On the Status tab, in the Status column of the only row, rename the predefined N/A status to Active,
and change the description to New drawing log. This status will be assigned by default to each newly
created drawing log.
4. On the table toolbar, click Add Row, and specify the following settings in the added row:
• Status: Inactive
• Description: The document is obsolete
5. Add three more rows with the settings listed in the following table.

Status Description

Submitted The drawing log needs to be re-

viewed by the project manager

Accepted The project manager has accepted

the drawing log

Rejected The project manager has rejected

the drawing log

6. Click Save on the form toolbar.

You can now create drawing logs in the system.

 Part 6: Project Management | 163

Drawing Logs: Process Activity

This activity will walk you through the process of working with a drawing log.

Story
Suppose that the ToadGreen architect has prepared a floor plan blueprint for the Beach Hotel and Condominiums,
the project that the ToadGreen company is working on. Then the architect has submitted a request for information
about the plan of the first floor to make sure that the current location of the storage room (next to the service
elevator) is correct. Based on the submitted request for information, a new revision of the blueprint should be
created and linked to the original drawing, and the original blueprint must be marked as obsolete.
Acting as the architect, you will process all required documents in the system with the assumption that these
changes will not affect the schedule, cost, and design.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The Construction and Construction Project Management features have been enabled in the Projects group of
features on the Enable/Disable Features (CS100000) form.
• On the Project Management Classes (PJ201000) form, the DOCRFI class has been defined with the Request
for Information check box selected in the Use For section of the Summary area.
• On the Projects (PM301000) form, the HOTEL project has been created with multiple project tasks.
• On the Employees (EP203000) form, the EP00000033 – Ellen Watson and EP00000013 – Anna Johnson
employee records have been created.

Process Overview
You will create a drawing log with the initial floor plan on the Drawing Log (PJ303000) form. You will then create a
request for information on the Request for Information (PJ301000) form and send an email to the person responsible
for receiving the needed information. Aer that, based on the answer to the request for information that you have
received, you will create a new drawing log on the Drawing Log (PJ303000) form.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as an architect by using the rsmith username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 3/15/2023. If a different date is displayed, click the Business Date menu
button, and select 3/15/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
3. Download the Floor_Plan_Revision_1.jpg and Floor_Plan_Revision_2.jpg files to your device.

Step 1: Creating a Drawing Log

To create a drawing log, do the following:
1. On the Drawing Log (PJ303000) form, add a new record.
2. In the Summary area, specify the following settings:
 Part 6: Project Management | 164

• Project: HOTEL
• Discipline: Architectural
• Owner: Ellen Watson
• Drawing Number: 1
• Title: Floor plan
• Description: Floor plan blueprint
3. Click Save on the form toolbar.
In the Summary area, note that the status of the drawing log is Active and that the Current check box is
selected for the drawing log to mark it as up to date.
4. On the table toolbar of the Drawings tab, click Files.
5. In the Files dialog box, which opens, click Browse, select the Floor_Plan_Revision_1 file, click Upload, and
close the dialog box. Notice that the line with the uploaded drawing has appeared in the table.

Step 2: Linking a Request for Information to the Drawing Log

To create a request for information, do the following.
1. While you are still viewing the drawing log that you have created on the Drawing Log (PJ303000), click
Create RFI on the More menu.
2. On the Request for Information (PJ301000) form, which opens with the new request for information, specify
the following settings in the Summary area:
• Project: HOTEL (inserted automatically)
• Contact: Anna Johnson
• Class ID: DOCRFI
• Summary: Storage room should be next to service elevator
• Owner: Ellen Watson
3. Leave the Schedule Impact, Cost Impact, and Design Change check boxes cleared.
4. On the Details tab, enter the following text:
• Question pane: Is the storage room next to the service elevator?
• Answer pane: No. The blueprint should be updated.
5. On the Drawings tab, make sure the row with the Floor plan drawing log that you have prepared is
shown.
6. On the form toolbar, click Save to save the request for information.
7. On the form toolbar, click Email.
The system opens the Email Activity (CR306015) form with the Anna Johnson contact specified in the To box.
8. On the form toolbar, click Attach.
The system opens the Attach Files dialog box with the file from the drawing log that you created.
9. Select the Included check box for the file, and click Attach to close the dialog box and attach the selected
file to email.
10.Click Send to send the email, close the form, and return to the Request for Information form with the request
for information that you have created earlier.

Step 3: Creating a Revision

To create a new revision of the drawing log with the updated floor plan, do the following:
 Part 6: Project Management | 165

1. Open the Drawing Logs (PJ403000) form, and in the table, click the link in the Drawing Log ID column of the
row with the Floor plan drawing log that you have created earlier in this activity.
2. On the form toolbar of the Drawing Log (PJ303000) form, which opens with the drawing log, click Create
Revision.
3. In the Revision box of the Summary area, enter the number of the revision: 1.
4. In the Description box, change the text to Revised floor plan blueprint.
5. Save the drawing log. Notice that in the Summary area, the Original Drawing box shows a link to the initial
drawing document.
6. On the table toolbar of the Drawings tab, click Files.
7. In the Files pop-up window, which opens, click Browse, select the Floor Plan Revision 2.jpg file, click
Upload, and close the window. Notice that the Current check box is selected for the new revision of the
drawing log, as shown in the following screenshot.

Figure: The new revision of the drawing log

8. In the Summary area, click the link in the Original Drawing box. The Drawing Log form opens with the
original drawing log.
9. In the Summary area of the form, select Inactive in the Status box.
10.Clear the Current check box to indicate that the original drawing log is obsolete.
11.On the form toolbar, click Save & Close to save your changes.

You have finished creating a new revision for a drawing log.

Lesson 30: Working with Submittals

 Part 6: Project Management | 166

Submittals: General Information

The submittal functionality in Acumatica ERP Construction Edition is used to organize the tracking of the approval
of the submittals related to documents and materials before they are fabricated and delivered for use in the
project. With up-to-the minute knowledge of the progress and status of these approvals, you can ensure that the
work on the project site uses approved specifications and materials.

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure submittal types
• Create a submittal in the system
• Define the people that will take part in processing a submittal and their submittal roles
• Process submittal-related activities
• Create a new revision of a submittal
• Close the completed submittal

Applicable Scenarios
You process a submittal when you want to track the process of verifying a document or material that is necessary
for a particular construction project.

Submittal Types
If you need to categorize the submittals, you can create submittal types on the Submittal Settings tab on the
Project Management Preferences (PJ101000) form. In the Submittal Types table, the Schedules type is predefined.
In the table, you add the necessary types of submittals; you can then filter the existing submittals by these types on
the Submittals (PM3060PL) form.

Submittal Roles
For each submittal, you can specify the people who perform functions in the processing of this particular submittal.
You assign each specified person one of the following submittal roles:
• Owner: A person who enters the submittal.
• Submitter: A person who submits the documents or materials.
• Approver: A person who reviews or needs to approve the submitted documents or materials. You can define
multiple approvers for the submittal, if needed.
• Reviewer: A person who reviews the submitted documents or materials for informational purposes. You can
define multiple reviewers for the submittal, if needed.

Submittal Processing Workflow

You enter, modify, and process submittals on the Submittals (PJ306000) form. The processing of a submittal in the
system includes the following general steps:
1. Entry of the submittal: The owner enters the submittal in the system. The submittal has the New status.
If the owner already has the submittal documents or materials, the owner can act as a submitter and then
submit the documents for approval.
 Part 6: Project Management | 167

2. Specification of the people to be involved in this submittal: The owner enters the submitter, approver, and,
optionally, reviewer who will work on this submittal.
3. Opening of the submittal: When the submittal is ready, the owner indicates that the processing of the
submittal has been started by opening the submittal in the system. The system assigns the submittal the
Open status.
4. Requesting that documents or materials be submitted:
The owner sends an email to the submitter indicating that this person needs to submit documents or
materials.
5. Submitting of documents or materials: The submitter submits the documents or materials to be approved.
6. Approval of documents or materials: The owner sends the submitted documents or materials for approval
to the person defined as the reviewer. The approver approves or rejects the submitted documents or
materials.
7. Creation of a new submittal revision (optional): If the submittal has been rejected by the approver because
a revised or additional version of the submitted documents or materials is needed, the owner closes the
rejected submittal revision (that becomes a closed revision with a revision ID of 0) and creates a new
revision. The first revision of a particular submittal is assigned a revision ID of 1, and this ID is incremented
by 1 for each subsequent revision of this submittal.
The new revision has the same submittal ID as the original submittal and the New status. The system also
copies details from the original submittal to the Details and Submittal Workflow tabs. For the new revision
the process of submitting and approving documents and materials starts from the beginning.
8. Informational review of the documents and materials (optional): Aer the submittal has been approved, the
owner sends the submitted documents or materials for review to the reviewer.
9. Closing of the submittal: The owner indicates that the processing of the submittal has been completed by
closing the submittal in the system. The submittal has the Closed status.

Entry of a Submittal
When you create a new submittal (acting as the owner), in the Summary area of the Submittals (PJ306000) form,
you specify the applicable project and a short description of the submittal; optionally, you can also specify
the submittal type and the project task and cost code to which the submittal relates. You can also specify the
specification reference number, the related section in the specification, the date by which the submittal process
must be finished, and the date when the documents and materials are required on site. On the Description tab,
you can provide a more complete description of the submittal.
On the Submittal Workflow tab, you add a row for each person that will take part in processing this submittal. For
each person, you specify the following details:
• Contact information. You select a contact from the list of existing contacts or click Add Row on the table
toolbar of the lookup table (which navigates you to the Contacts (CR302000) form where you can add a new
contact.)
• Submittal role (Submitter, Approver, or Reviewer).
• Optionally, the number of days that are scheduled for the review or the provision of the submitted
document or materials.
When you save the new submittal, the system assigns it the New status and automatically specifies 0 in the
Revision ID box to indicate that this submittal is newly created and has no revisions. In the Date Created box, the
system inserts the current business date by default. The system also inserts your employee name in the Owner box
(to indicate that you have created this submission) and in the Ball in Court box to indicate that you are currently
responsible for taking action on this submittal.
When you have specified the summary settings and defined the people involved in the submittal workflow, you
open the submittal by clicking Open on the form toolbar of the Submittals form. The system changes the submittal's
status to Open.
 Part 6: Project Management | 168

Submitting Documents
To notify a person in the workflow about the need to perform a particular action, you send an email to each
responsible person in the submittal by selecting the Email To check box on the Submittal Workflow tab and
clicking the Email button on the form toolbar. The system opens the Email Activity (CR306015) form in a pop-up
window with the email address of this person or these people inserted in the To box. When you send the email, the
system adds a row for this email on the Activities tab.
Aer you have sent an email to a submitter, in the corresponding row on the Submittal Workflow tab, you select
Pending in the Status column. The system automatically changes the contact or employee in the Ball in Court box
of the Summary area to the submitter contact; this indicates the party that currently require to perform the next
action for the submitted document or material. The system also specifies the due date in the row based on the
values in the Start Date and Days for Review columns in this row.
Once the person responsible for the submittal replies, the incoming email appears on the Activities tab of the
Submittals form. You change the status of the row on the Submittal Workflow tab to Completed and the reason in
the Summary area to Submitted (and attach the provided document to the submittal, if applicable).

Approval or Rejection of Submitted Documents

When the necessary documents or materials have been submitted, you send an email to the approver (or multiple
approvers) of the submittal; you also attach the submittal to the email if it is in the form of a file. (Physical materials
are instead delivered to approvers.)
When the approver or approvers have the needed document or material, you specify Pending Approval in the
Reason box of the Summary area and change the status of the row of the approver to Pending on the Submittal
Workflow tab. The system inserts the name of the approver in the Ball in Court box in the Summary area; if you
have changed the status to Pending for multiple approvers on the Submittal Workflow tab, the system uses
the name of the first approver listed in the table. For each approver with the Pending status on the Submittal
Workflow tab, the system also inserts the date in the Start Date column and calculates the date in the Due Date
column if a number of days for review is specified for the applicable approvers.
Once an approver replies to the email, the incoming email appears on the Activities tab of the Submittals form. If
the approver approves the submitted documents, you change the status of the row on the Submittal Workflow tab
to Approved (and attach the provided materials to the submittal, if necessary).
If an approver rejects the submitted documents and asks for changes to be made in the submitted documents or
materials, you change the status of the row on the Submittal Workflow tab to Rejected, and proceed to closing the
submittal and creating a new submittal revision.

Reviewing of Submittal Documents

Aer the submitted documents or materials have been approved, you send an email with the documents to the
informational reviewer (or multiple reviewers), and change the status of the corresponding rows on the Submittal
Workflow tab to Pending.
The system inserts the employee name of the reviewer in the Ball in Court box in the Summary area; if you have
changed the status to Pending for multiple reviewers on the Submittal Workflow tab, the system uses the name
of the first such person listed in the table. For each reviewer with the Pending status on the Submittal Workflow
tab, the system also inserts the date in the Start Date column and calculates the date in the Due Date column if a
number of days for review is specified for the applicable reviewer.
Once a reviewer has completed the review and replies to the email, the incoming email appears on the Activities
tab of the Submittals form. You change the status of the corresponding row on the Submittal Workflow tab to
Completed.
 Part 6: Project Management | 169

Closing of a Submittal
Based on the replies received from approvers and reviewers, you close the submittal by clicking Close on the form
toolbar of the Submittals (PJ306000) form. In the Details dialog box, which opens, you specify the closure date in
the Date Closed box, and one of the following closure reasons in the Reason box:
• Approved: The submittal was approved with no concerns.
• Approved as Noted: The submittal was approved with some concerns.
• Rejected: The submittal did not fit the requirements.
• Revise and Resubmit: The submittal was rejected with some comments that should be taken into
consideration. Aer the needed changes are made, the new revision of this submittal could be approved.
Aer you click OK in the dialog box, the system inserts the specified reason in the Reason box and assigns the
submittal revision the Closed status. If the submittal processing has not yet been completed, you create a new
revision of this submittal by clicking the Create Revision button on the More menu, and proceed with submittal
process for the new revision.

Submittals: Implementation Activity

This activity will walk you through the process of creating submittal types, which are used to categorize submittals
in the system.

Story
Suppose that the ToadGreen company needs to track submittals. Also, the construction project manager wants
to be able to categorize the submittals for which photos have been provided, and those for which product
samples have been provided. Thus, you need to create these types of submittals in the system. Acting as a system
administrator, you need to configure the submittal types to be used for the categorization of submittals in the
system.

Configuration Overview
For the purposes of this activity, the Construction and Construction Project Management features have been
enabled on the Enable/Disable Features (CS100000) form.

System Preparation
To prepare to perform the instructions of this activity, sign in to the system as an administrator by using the gibbs
username and the 123 password.

Step: Creating Submittal Types

To create submittal types, do the following:
1. Open the Project Management Preferences (PJ101000) form.
2. On the Submittal Settings tab, on the table toolbar of the Submittal Types table, click Add Row. In the
row, specify the following settings:
• Submittal Type: Photos
• Description: Photos
3. Again click Add Row, and specify the following settings in the new row:
• Submittal Type: Product Samples
 Part 6: Project Management | 170

• Description: Product Samples

4. On the form toolbar, click Save.

You have configured the types of submittals that can be created and processed in the system.

Submittals: Process Activity

This activity will walk you through the processing of a submittal.

Story
Suppose that the ToadGreen Building Group company is building an Italian restaurant for the Equity Group
Investors customer. The company needs to confirm that the customer wants to use the carpet being proposed for
the dining area of the restaurant.
Ellen Watson, as the construction project manager, is managing the submittal process. Jonathan Stone, the
customer’s designer, needs to approve a sample of the carpet. Teresa Willis—a new sales manager of Karn Design
Inc., for which the construction project manager needs to add a contact in the system—needs to send the carpet
sample to Jonathan Stone, who should approve the color and the material of the carpet.
Also suppose that aer reviewing the sample, the designer rejects the submittal because a part of the carpet's
pattern was cut off; the designer requests a larger sample. Aer the new sample is received, the designer approves
it. Then the construction project manager sends the approved sample for an informational review to Larry
Robinson, a purchase manager of the ToadGreen company. Aer the purchase manager confirms that he has
reviewed the sample, the construction project manager finishes the submittal process because all required actions
have been performed.
Acting as the construction project manager, you need to create a new contact to be used in the submittal, enter the
submittal in the system, open it, and add the necessary information during the processing of the submittal.

For simplicity, in this activity, you will perform all actions while remaining signed in as Ellen Watson.
In a production system, all actions would be performed by the responsible persons.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Construction and Construction Project Management
features have been enabled.
• On the Contacts (CR302000) form, a contact record for Jonathan Stone has been created, and on the
Employees (EP203000) form, employee accounts for Larry Robinson and Ellen Watson have been created.
• On the Projects (PM301000) form, the ITALIAN project with the 12 - FURNISHINGS project task has been
created. Also, on the Cost Codes (PM209500) form, the 12-460 - Furnishings- Misc Accessories cost code has
been added.

Process Overview
To process the submittal in the system, you will create and open it on the Submittals (PJ306000) form. During the
entry of the submittal, you will add a new contact for the submitter on the Contacts (CR302000) form. You will send
the emails to the submitter and then the approver by using the Email Activity (CR306015) form, and will change the
status of the corresponding rows on the Submittal Workflow tab to indicate that a response from the responsible
person is pending. Aer the response is received, you will indicate this in the submittal document.
 Part 6: Project Management | 171

Aer the approver rejects the submittal, you will prepare a new submittal revision. You will again send the emails
to the submitter and approver by using the Email Activity (CR306015) form, and track the workflow statuses of the
submittal. Once the approver approves the submittal, you will send an email to the reviewer. Finally, when the
response from the reviewer is received, you will close the submittal document revision with the Approved status.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as Ellen Watson, the construction project manager, by using the ewatson username
and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today's date.

Step 1: Entering and Opening a Submittal

To enter a submittal for the carpet sample, including the employees with roles in the submittal, and then open the
submittal, do the following (acting as Ellen Watson):
1. On the Submittals (PJ306000) form, add a new record.
2. In the Summary area, specify the following settings:
• Project: ITALIAN
• Project Task: 12 - FURNISHINGS
• Cost Code: 12-460
• Submittal Type: Product Samples
• Summary: Carpet for the dining area
• Owner: Ellen Watson (inserted automatically)
In the Summary area, notice that the status and the reason of the submittal are both set to New.
3. On the Description tab, type Sample of the carpet to be laid in the dining area.
4. On the form toolbar, click Save.
5. On the table toolbar of the Submittal Workflow tab, click Add Row. In this row, you will add Teresa Willis as
the submitter, but you need to create a contact in the system for her.
6. In the added row, click in the Contact column, and then click the magnifier icon to open the lookup table
with the list of existing contacts.
7. On the table toolbar of the lookup table, click Add Row. The system opens the Contacts (CR302000) form in
a pop-up window.
8. In the Summary area, select KADESIGN as the Business Account.
9. On the Details tab of the form, specify the following settings:
• First Name: Teresa
• Last Name: Willis
• Job Title: Sales Manager
• Email: [email protected]
• Business 1: +1 (212) 209-0982
10.On the form toolbar, click Save & Close to save the record, close the window, and return to the Submittal
Workflow tab of the Submittals form. The system has inserted the newly created contact in the Contact
column of the row you added.
11.In the row, specify the following settings:
• Role: Submitter
 Part 6: Project Management | 172

• Status: Planned
This is the status of this contact's work on the submittal.
• Days for Review: 10
12.To add the designer approving the submittal, on the table toolbar, click Add Row, and specify the following
settings in the row:
• Contact: Jonathan Stone
• Role: Approver
• Status: Planned
• Days for Review: 3
13.To add the purchase manager performing an informational review, on the table toolbar, click Add Row, and
specify the following settings in the row:
• Contact: Larry Robinson
• Role: Reviewer
• Status: Planned
• Days for Review: 3
14.On the form toolbar, click Save.
15.On the form toolbar, click Open.
16.In the Details dialog box, which is opened, leave Issued as the reason, and click OK.
In the Summary area, notice that the system has changed the status of the submittal to Open and the reason
to Issued.

Step 2: Sending an Email to the Submitter

In this step, you will continue managing the submittal, acting as Ellen Watson. To send an email to the sales
manager of Karn Design Inc., proceed as follows:
1. While you are still viewing the submittal on the Submittals (PJ306000) form, on the Submittal Workflow tab,
select the Email To check box in the row with the Teresa Willis contact, and click Email on the form toolbar.
The Email Activity (CR306015) form opens in a pop-up window with the email address of Teresa Willis
inserted in the To box.
2. On the Message tab, type the following text:
Dear Teresa,
Please provide a sample of the carpet that you proposed for the dining
area.
Best regards,
Ellen Watson

In a production system, you would also attach any needed documents to the email. In this
activity, for simplicity, you are skipping this step for all emails you sent.

3. On the form toolbar, click Send to send the email. The system sends the email, closes the window, and
returns to the Submittals form.
4. On the Activities tab, make sure that the email you sent is listed.
5. On the Submittal Workflow tab, in the Status column of the row for Teresa Willis, select Pending to indicate
that you are waiting on a response from the submitter.
6. Click Save on the form toolbar.
 Part 6: Project Management | 173

In the Ball in Court box in the Summary area, notice that the system has specified Teresa Willis to reflect the
person who currently has to perform an action for the submittal. Also, on the Submittal Workflow tab, in
the row for Teresa Willis, the system has set the Start Date to the current business date and calculated the
Due Date based on the start date and the days for review that you specified earlier in this row.

Step 3: Receiving an Answer from the Submitter

In this step, you will prepare and send an email response from the submitter (which the submitter would instead do
in a production environment) and indicate that the requested sample has been provided. Do the following:
1. In the info area, in the upper-right corner of the top pane, change the business date to eight days aer the
previously specified date.
2. While you are still viewing the submittal on the Submittals (PJ306000), on the Activities tab, click the link in
the Summary column to open the sent email on the Email Activity (CR306015) form.
3. On the More menu, click Process, and then click Reply. The system prepares the Email Activity form for a
reply email.

Ignore the warning message that appears aer you click Reply. In U100 dataset,
authentication is not configured for the system email. In production system, system email
account will be set up.

4. In the From box, enter [email protected].

5. In the To box, make sure Ellen Watson is specified.
6. On the Message tab, type the following text:
Dear Ellen,
The sample of the carpet has been sent to you by delivery service.
Best regards,
Teresa Willis
7. On the form toolbar, click Send to send the email and close the form.
On the Activities tab of the Submittals form, notice that the email from Teresa is listed. Suppose that the
sample from the delivery service has arrived.
8. On the Submittal Workflow tab, in the Status column of the row for Teresa Willis, select Completed to
indicate that she has submitted the needed sample. Notice that in the Completion Date column, the system
inserts the current business date (that is, the date you specified at the beginning of this step).
9. Click Save on the form toolbar to save your changes.
In the Summary area, notice that the system has changed the name in the Ball in Court box to Ellen Watson
because currently there are no rows with the Pending status on the Submittal Workflow tab.

Step 4: Requesting the Approval of the Submitted Sample

To request approval from the designer for the documents, do the following (acting as Ellen Watson):
1. While you are still viewing the submittal on the Submittals (PJ306000) form, on the Submittal Workflow tab,
select the Email To check box in the row with the Jonathan Stone contact, and on the form toolbar, click
Email.
The Email Activity (CR306015) form opens in a pop-up window with the email address of Jonathan Stone
automatically specified in the To box.
2. On the Message tab, type the following text:
Dear Jonathan,
 Part 6: Project Management | 174

I have sent you the sample of the carpet that Karn Design Inc. provided
us. Please let me know if this is what you want to see in the dining area
of the restaurant.
Best regards,
Ellen Watson
3. On the form toolbar, click Send to send the email and close the form. On the Activities tab of the Submittals
form, notice that the email to Jonathan is listed.
4. On the Submittal Workflow tab, in the Status box of the row for Jonathan Stone, select Pending to indicate
that you are waiting on a response from the approver.
5. Click Save on the form toolbar. In the Summary area, notice that the system has changed the name in the
Ball in Court box to Jonathan Stone because you changed the status in his row. Also, on the Submittal
Workflow tab, the system has set the Start Date to the current business date (which you set in Step 3) and
calculated the Due Date accordingly.

Step 5: Rejecting the Submitted Documents

To prepare and send an email from the designer (which Jonathan Stone himself would do in a production
environment) and indicate that the provided sample has been rejected, do the following:

For simplicity, in this step, you will perform the actions while remaining signed in as Ellen Watson. In a
production system, all actions would be performed by the responsible persons.

1. In the info area, in the upper-right corner of the top pane, change the business date to three days aer the
previously specified date.
2. While you are still viewing the submittal on the Submittals (PJ306000), on the Activities tab, click the link in
the Summary column of the first row to open the email that you sent earlier to Jonathan Stone on the Email
Activity (CR306015) form.
3. On the More menu, click Process, and then click Reply. The system prepares the Email Activity form for a
reply email.

Ignore the warning message that appears aer you click Reply. In U100 dataset,
authentication is not configured for the system email. In production system, system email
account will be set up.

4. In the From box, specify [email protected].

5. In the To box, make sure Ellen Watson is specified.
6. On the Message tab, type the following text:
Dear Ellen,
I like the color and material. But the sample is too small, and part of
the pattern was cut off from the sample. Could you please provide a larger
sample?
Best regards,
Jonathan Stone
7. On the form toolbar, click Send to send the email and close the form. On the Activities tab of the Submittals
form, notice that the email from Jonathan is listed.
8. On the Submittal Workflow tab, in the Status box of the row for Jonathan Stone, select Rejected to indicate
the that approver rejected the submittal.
 Part 6: Project Management | 175

Step 6: Creating and Opening a New Revision of the Submittal

To close the submittal and prepare a new submittal revision, do the following (acting as Ellen Watson):
1. While you are still viewing the submittal on the Submittals (PJ306000) form, on the Submittal Workflow tab,
in the Status column of the row for Larry Robinson, select Canceled.
2. Click Save on the form toolbar, and then click Close.
3. In the Details dialog box, select Revise and Resubmit in the Reason box, and click OK.
In the Summary area, notice that the system has changed the status of the submittal to Closed and the
reason to Revise and Resubmit, as shown in the following screenshot.

Figure: Closed submittal revision

4. On the form toolbar, click Create Revision.

The system creates a new revision of the submittal with the same ID, a new revision ID (1), and the New
status. Other settings in the Summary area have been copied from the previous submittal revision.
5. Review the Submittal Workflow tab, and make sure that the new revision contains all the rows from the
original submittal.
6. On the form toolbar, click Open.
7. In the Details dialog box, which is opened, leave Issued as the reason, and click OK.

Step 7: Sending an Email to the Submitter

To again request a sample from the submitter based on the feedback from Jonathan Stone, do the following (acting
as Ellen Watson):
1. While you are still viewing the submittal on the Submittals (PJ306000) form, on the Submittal Workflow tab,
select the Email To check box in the row for Teresa Willis.
2. On the form toolbar, click Email. The Email Activity (CR306015) form opens in a pop-up window with the
email address specified in the To box.
3. On the Message tab, type the following text:
Dear Teresa,
The first sample was too small, and part of the pattern was cut off. Could
you provide a larger sample please?
Best regards,
 Part 6: Project Management | 176

Ellen Watson
4. On the form toolbar, click Send to send the email and close the form.
5. On the Activities tab of the Submittals form, make sure that the email you just sent to Teresa has is listed.
6. On the Submittal Workflow tab, in the Status column of the row for Teresa Willis, select Pending to indicate
that you are waiting on a response from the submitter.
7. Click Save on the form toolbar.

Step 8: Receiving an Answer from the Submitter

To enter and send the an email response from the submitter, do the following:

For simplicity, in this activity you will perform the actions while remaining signed in as Ellen Watson.
In production system, all actions would be performed by responsible persons.

1. In the info area, in the upper-right corner of the top pane, change the business date to five days aer the
previously specified date.
2. While you are still viewing the submittal on the Submittals (PJ306000), on the Activities tab, click the link in
the Summary column of the first row to open the sent email on the Email Activity (CR306015) form.
3. On the More menu, click Process, and then click Reply. The system opens the Email Activity form for a reply
email.

Ignore the warning message that appears aer you click Reply. In U100 dataset,
authentication is not configured for the system email. In production system, system email
account will be set up.

4. In the From box, specify [email protected], and make sure Ellen Watson is specified in the To box.
5. On the Message tab, type the following text:
Dear Ellen,
The larger sample of the carpet has been sent by delivery service.
Best regards,
Teresa Willis
6. On the form toolbar, click Send to send the email and close the form. On the Activities tab of the Submittals
form, make sure that the email Teresa just sent to Ellen is listed. Suppose that the sample from the delivery
service has arrived.
7. On the Submittal Workflow tab, in the Status box of the row for Teresa Willis, select Completed to indicate
that the submitter has provided the requested sample.
8. Click Save on the form toolbar.

Step 9: Requesting the Approval

Suppose that you (Ellen Watson) have sent the larger carpet sample to the approver, Jonathan Stone. To send him
an email requesting the approval of the submitted carpet sample, do the following:
1. While you are still viewing the submittal on the Submittals (PJ306000) form, on the Submittal Workflow tab,
select the Email To check box in the row for Jonathan Stone.
2. On the form toolbar, click Email. The Email Activity (CR306015) form opens in a pop-up window with the
email address of Jonathan Stone in the To box.
3. On the Message tab, type the following text:
 Part 6: Project Management | 177

Dear Jonathan,
I have sent you a new sample. Please let me know what you think.
Best regards,
Ellen Watson
4. On the form toolbar, click Send to send the email and close the form. On the Activities tab of the Submittals
form, make sure that the email sent to Jonathan about the new sample is listed.
5. On the Submittal Workflow tab, in the Status box of the row for Jonathan Stone, select Pending to indicate
that you are waiting on a response from the submitter.
6. Click Save on the form toolbar.

Step 10: Approving the Submitted Sample

To enter and send the email response from the designer (which he would do in a production environment) and
indicate that the provided sample have been approved, do the following:

For simplicity, in this step, you will perform the actions while remaining signed in as Ellen Watson. In a
production system, all actions would be performed by the responsible persons.

1. In the info area, in the upper-right corner of the top pane, change the business date to three days aer the
date you previously specified.
2. While you are still viewing the submittal on the Submittals (PJ306000), on the Activities tab, click the link in
the Summary column of the first row to open the sent email on the Email Activity (CR306015) form.
3. On the More menu, click Process, and then click Reply. The system prepares the Email Activity form for a
reply email.

Ignore the warning message that appears aer you click Reply. In U100 dataset,
authentication is not configured for the system email. In production system, system email
account will be set up.

4. In the From box, enter [email protected], and make sure Ellen Watson is specified in the To box.
5. On the Message tab, type the following text:
Dear Ellen,
Yes, let’s lay this carpet.
Best regards,
Jonathan Stone
6. On the form toolbar, click Send to send the email.
The system closes the window. On the Activities tab of the Submittals form, notice that Jonathan's approval
email is listed.
7. Select the Final Answer check box for the last email from Jonathan to indicate that the email contains the
final decision from the responsible party.
8. On the Submittal Workflow tab, in the Status box of the row for Jonathan Stone, select Approved. The
system inserts the current business date as the Completion Date.
9. Click Save on the form toolbar.
In the Summary area, notice that the system has changed the name in the Ball in Court box to Ellen Watson
because there are no rows with the Pending status on the Submittal Workflow tab.
 Part 6: Project Management | 178

Step 11: Sending an Email to the Reviewer

To ask the purchase manager to review the carpet sample, do the following (acting as Ellen Watson):
1. While you are still viewing the submittal on the Submittals (PJ306000) form, on the Submittal Workflow tab,
select the Email To check box in the row for Larry Robinson.
2. On the form toolbar, click Email.
The Email Activity (CR306015) form opens in a pop-up window with the email address of Larry Robinson in
the To box.
3. On the Message tab, type the following text:
Dear Larry,
Please review the sample of the carpet for the dining area.
Best regards,
Ellen Watson
4. On the form toolbar, click Send to send the email and close the form. On the Activities tab of the Submittals
form, notice that the email to Larry is listed.
5. On the Submittal Workflow tab, in the Status column of the row for Larry Robinson, select Pending.
6. Click Save on the form toolbar.
In the Summary area, notice that the system has changed the name in the Ball in Court box to Larry
Robinson because you changed the status in his row. Also, on the Submittal Workflow tab, the system has
set the Start Date to the current business date and calculated the Due Date.

Step 12: Receiving an Answer from the Reviewer

To enter and send the email response from the reviewer (which he would instead do in a production environment,
do the following:

For simplicity, in this step, you will perform the actions while remaining signed in as Ellen Watson. In a
production system, all actions would be performed by the responsible persons.

1. In the info area, in the upper-right corner of the top pane, change the business date to three days aer the
date you previously specified.
2. While you are still viewing the submittal on the Submittals (PJ306000), on the Activities tab, click the link in
the Summary box of the first row to open the sent email on the Email Activity (CR306015) form.
3. On the More menu, click Process, and then click Reply. The system opens the Email Activity form with a
reply email.

Ignore the warning message that appears aer you click Reply. In U100 dataset,
authentication is not configured for the system email. In production system, system email
account will be set up.

4. In the From box, specify [email protected], and make sure Ellen Watson is specified in the To
box.
5. On the Message tab, type the following text:
Dear Ellen,
Thank you for the information. I have reviewed the materials.
Best regards,
 Part 6: Project Management | 179

Larry Robinson
6. On the form toolbar, click Send to send the email. On the Activities tab of the Submittals form, notice that
the email from Larry is listed.
7. On the Submittal Workflow tab, in the Status box of the row for Larry Robinson, select Completed. The
system inserts the current business date as the Completion Date.
8. Click Save on the form toolbar.

Step 13: Closing the Submittal

To close the submittal, do the following (acting as Ellen Watson):
1. While you are still viewing the submittal on the Submittals (PJ306000) form, on the form toolbar, click Close.
2. In the Details dialog box, which opens, select Approved in the Reason box, and click OK.
In the Summary area, notice that the system has changed the status of the submittal to Closed and the
reason to Approved.

You have finished working with the submittal.

 Additional Information | 180

Additional Information

Appendix A: Subcontracts and Accounts Payable

Subcontracts: Mass Processing

The following sections explain how to mass-process subcontracts.

Mass Printing of Subcontracts

To print subcontracts in bulk, you use the Print/Email Subcontracts (SC503000) form. You select Print in the Action
box, select the check boxes in the rows of the needed subcontracts in the table, and click Process on the form
toolbar; you can click Process All on the form toolbar to print all the subcontracts listed in the table.

Mass Emailing of Subcontracts

To send emails with multiple subcontracts, you use the Print/Email Subcontracts (SC503000) form. You select Email
in the Action box, select check boxes in the rows of the needed subcontracts in the table, and click Process on the
form toolbar; you can click Process All to send emails with all the subcontracts listed in the table.

Subcontracts: Related Reports

In the following sections, you can find details about the reports and inquiry forms you may want to review to gather
information about subcontracts.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Reviewing Subcontract Details

To review details of subcontracts, you can use reports as follows:
• To review summary information about the subcontracts that are neither closed nor canceled, you use the
Subcontract Summary (SC610500) report.
• To review the detailed information about subcontracts that are neither closed nor canceled grouped by
vendors (subcontractors), you use the Subcontract Details by Vendor (SC611000) report.

Finding the Bills and Debit Adjustments Related to a Subcontract

If you need to find an accounts payable document linked to a particular subcontract, you open the subcontract on
the Subcontracts (SC301000) form and review the Billing tab. The table on this tab lists all the accounts payable
documents that have been prepared for the subcontract, and the table footer shows the summary information
for all listed documents. To review the details of a particular document, you click its reference number in the
 Additional Information | 181

Reference Nbr. column; the system opens the accounts payable bill or debit adjustment for review on the Bills and
Adjustments (AP301000) form.

Reviewing the Unbilled Quantities of a Subcontract

To check whether a subcontract has quantities of items and amounts that have not yet been billed, you review the
Unbilled Quantity and Unbilled Amount boxes on the Other tab of the Subcontracts (SC301000) form.

Printing Subcontracts
While you are viewing a subcontract on the Subcontracts (SC301000) form, you can print the document by clicking
Print on the form toolbar. The system opens the printable version of the document on the Subcontract (SF)
(SC641000) report; then you can review the document and print it by clicking Print on the report toolbar.

AP Bills with Retainage: Mass-Processing of Documents

The following section explains how to create retainage bills for multiple AP bills.

Mass-Releasing Retainage
To release retainage for multiple bills, you use the Release AP Retainage (AP510000) form. In the Selection area,
in the Date box, you select the date for which you want to create the retainage bills. The system fills in the Post
Period box with the period of the selected date. (You can change it, if necessary.) You can specify other settings to
filter the bills in the table, such as vendor and reference number.
In the table, for each bill for which you want to release retainage, you check the Percent to Release or Retainage
to Release column, and change the value in either column, if necessary. You then select the check boxes in the
unlabeled column for the bills for which you want to release the retainage and then click Process on the form
toolbar. If you want to release the retainage for all listed bills, you click Process All on the form toolbar.

You can configure the system to automatically release the retainage bills that are created on this form
by selecting the Automatically Release Retainage Documents check box on the Accounts Payable
Preferences (AP101000) form.

Correction of a Bill for a Subcontract: Related Report and Inquiry Forms

The following sections describe the reports, inquiries, and forms you may review to gather information about billed
amounts and quantities in subcontracts, vendor balances, and debit adjustments processed for subcontracts.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Finding the Bills and Debit Adjustments Related to a Subcontract

If you need to find an accounts payable document linked to a particular subcontract, you open the subcontract on
the Subcontracts (SC301000) form and review the Billing tab. The table on this tab lists all the accounts payable
documents that have been released for the subcontract, and the table footer shows the summary information
for all listed documents. To review the details of a particular document, you click its reference number in the
 Additional Information | 182

Reference Nbr. column; the system opens the accounts payable bill or debit adjustment for review on the Bills and
Adjustments (AP301000) form.

Reviewing the Unbilled Quantities of a Subcontract

To check whether a subcontract has quantities of items and amounts that have not yet been billed, you review the
Unbilled Quantity and Unbilled Amount boxes on the Details tab (for each individual line) of the Subcontracts
(SC301000) form, or the total unbilled amount and unbilled quantity on the Other tab of the form.

Reviewing the Subcontractor's Outstanding Balance

You use the Vendor Details (AP402000) form to review the outstanding balance of a particular subcontractor. The
debit adjustments you create in the system decrease the outstanding balance of the subcontractor.

Reviewing the Subcontractor's Balance and Documents

You run the AP Balance by Vendor (AP632500) report to review the balance and documents of a particular
subcontractor for a particular period.

Vendor Payments by Project: Related Report and Inquiry Forms

The following sections describe reports, inquiries, and forms you can review to gather information about payments
for projects.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Reviewing Checks that Are Pending Printing

You can use the Checks Pending Printing (AP404000) form to review which checks have not been printed yet as of a
specified pay date. You can initiate check printing on this form by clicking Print Checks on the form toolbar. The
system navigates to the Process Payments / Print Checks (AP505000) form, where you can print checks.

Reviewing Vendor Documents

You use the Vendor Details (AP402000) form to review the accounts payable documents (bills, debit and credit
adjustments, and checks) for a particular vendor.
By default, the form displays the list of open vendor documents (that is, those with the Open status), but you can
add to the list closed documents and unreleased documents by selecting the Show All Documents and Include
Unreleased Documents check boxes, respectively.

Running the Check Register Inquiry

You use the Check Register (AP404500) form to review the details of the checks that have been generated in the
system. By using this inquiry form, you can find out whether a particular check number has been used and, if it has,
for which AP check.
If you have reprinted a check with a new number or voided a check, the system does not allow this number to be
reused. The inquiry displays the check numbers of all checks, including those have been reprinted or voided.
 Additional Information | 183

Purchases with a Sales Tax: Related Report and Inquiry Forms

The following sections describes reports, inquiries, and forms you may review to gather information about AP bills.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Reviewing the Details of an Unreleased Bill

If a bill has not yet been released, you can review the details of the bill by running the AP Edit Detailed (AP610500)
report. When you run this report from the Bills and Adjustments (AP301000) form by clicking AP Edit Detailed
(under Reports) on the More menu, the report shows the details of the bill opened on this form. You can review
what GL batch the system will create when you release the bill, which accounts will be updated by the transaction,
and how the vendor's balance will be affected.

Reviewing the Details of a Released Bill

Once you have released a bill, you can review the details of the bill by running a report on the AP Register Detailed
(AP622000) form. When you run this report from the Bills and Adjustments (AP301000) form by clicking AP Register
Detailed (under Reports) on the More menu, the report shows the details of the bill opened on this form. You can
review the GL batch the system created when releasing the bill and the accounts that have been updated by the
transaction.

Reviewing Vendor Information

You can review the balances of a specific vendor on the Vendor Details (AP402000) form. When you open this
inquiry from the Bills and Adjustments (AP301000) form by clicking Vendor Details (under Inquiries) on the More
menu, the Vendor Details form is opened, showing the outstanding balances of the selected vendor and a list
of documents of this vendor that have the Open status. You can select the Show All Documents and Include
Unreleased Documents check boxes in the Selection area of the form to include all documents and unreleased
documents, respectively, in the inquiry.

Reviewing the Vendor's Balance

Aer a bill has been released, you can review the vendor's balance on the AP Balance by Vendor (AP632500) form.
On this form, you select Open Documents in the Report Format box and specify the needed financial period.
In the report, you can review open documents and vendor balances at the end of the period, grouped by vendor
and by AP account. When you release a bill or an adjustment, the system updates the vendor balance. Vendor
Documents Total is the total amount of all open documents of the vendor.

Appendix B: Change Management

Project Issue: Mass Processing

The following section explains how to mass-assign owners to project issues.

 Additional Information | 184

Mass-Assigning Owners to Project Issues

You use the Assign Project Issue (PJ502000) form to assign owners to project issues. To do this, you select the check
boxes in the unlabeled column for the project issues that you want to assign to owners and then click Process on
the form toolbar. If you want to assign owners to all project issues, click Process All.
The system assigns owners according to the assignment map selected in the Project Issue Assignment Map box of
the Project Management Preferences (PJ101000) form.

Appendix C: Projects with Retainage

AR Invoices with Retainage: Mass-Processing of Documents

The following section explains how to release retainage for multiple AR invoices.

Mass-Releasing Retainage
To release retainage for multiple invoices, you use the Release AR Retainage (AR510000) form. In the Selection
area, in the Date box, you select the date for which you want to create the retainage invoices. The system fills in
the Post Period box with the period of the selected date. (You can change it, if necessary.) You can specify other
settings to filter the invoices in the table, such as customer, project, project task, account group, cost code, and
inventory ID. You also can specify the percent of retainage to be released in the Retainage Percent box for all
invoices in the table.
In the table, for each invoice for which you want to release retainage, you should check the Percent to Release or
Retainage to Release column, and change the value in either column, if necessary. You then select the check boxes
in the unlabeled column for the invoices for which you want to release the retainage and then click Process on the
form toolbar. If you want to release the retainage for all listed invoices, you click Process All on the form toolbar.

Pro Forma Invoice Correction: Related Reports and Forms

In the following sections, you can find details about the reports and forms you may want to review to gather
information about correcting pro forma invoices.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Reviewing Revisions of a Pro Forma Invoice

You can review all the previous revisions of the pro forma invoice selected on the Pro Forma Invoices (PM307000)
form in the Previous Revisions table on the Financial tab. If there are several revisions in the table, the topmost
row is the last revision of the pro forma invoice while revision 1 is the first revision of the invoice.
For each revision, you can find in the table the reference number of the accounts receivable document created
on release of the revision (AR Ref. Nbr.) and the reference number of the reversing AR document (Reversing Ref.
Nbr.) created for that accounts receivable document. By clicking the reference numbers, you can opens these AR
documents on the Invoices and Memos (AR301000) form.
 Additional Information | 185

Reviewing AR Documents Related to a Project

You can review all the accounts receivable documents related to pro forma invoices of a project, including AR
documents of the previous revisions of pro forma invoices and reversing AR documents, on the Invoices tab of the
Projects (PM301000) form.

If a pro forma invoice has been corrected, the latest generated accounts receivable invoice is listed in the same row
with the pro forma invoice. All the previous revisions of the accounts receivable invoices and reversing accounts
receivable documents generated for the pro forma invoice are shown in the end of the invoices list.

Comparing Revisions of a Pro Forma Invoice

You can compare all the revisions of a pro forma invoice on the Pro Forma Invoice Correction History (PMGI0030)
form. In the Summary area of the form, in the Reference Nbr. box, you select a pro forma invoice whose revisions
you want to review. In the table, the system displays all lines of all the revisions of the selected pro forma invoice.
The lines are sorted ascending by the invoice line number and then descending by the invoice revision—that is, the
system shows all the revisions of the first invoice line, then all the revisions of the second line, and so on. The lines
of the current revision are highlighted with green and have the highest revision number.

Appendix D: Project Documentation Management

Daily Field Reports: Related Reports and Inquiry Forms

In the following sections, you can find details about the reports and inquiry form you may want to review to gather
information related to daily field reports.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Reviewing the History of Requests to a Weather Service

If integration with a weather service has been configured on the Weather Services tab of the Project Management
Preferences (PJ101000) form, you can find a list of all requests sent to the weather service on the Daily Field Report
Weather Processing Log (PJ404000) inquiry form. On this form, you can narrow the list of records by the project,
weather service, and dates. You can also set up the form to display only the requests that have failed, along with a
description of the error.

Printing Daily Field Reports

To prepare a printable form of a particular daily field report, you use the Daily Field Report Form (PJ644000) report.
You can print this report or send it by email.
To prepare a printable form of the list of the daily field reports for a particular project of a particular day, you use
the Daily Field Report by Project Form (PJ644050) report. You can also display only completed daily field reports in
this report. You can print this report or send it by email.
 Additional Information | 186

Daily Field Reports: Mass Processing

The following sections explain how to load weather conditions for multiple daily field reports and how to clear the
history of requests to weather services.

Mass-Loading Weather Conditions

If integration with a weather service has been configured on the Weather Services tab of the Project Management
Preferences (PJ101000) form, you can use the Load Daily Field Report Weather Conditions (PJ504000) form to create
weather records in multiple daily field reports. On this form, you select the check boxes in the unlabeled column
for the daily field reports for which you want to load weather records and then click Process on the form toolbar.
If you want to create weather records for all listed daily field reports, you click Process All. The system creates one
weather record on the Weather tab of the Daily Field Report (PJ304000) form for each daily field report.

Mass-Clearing Requests to Weather Services

If integration with a weather service has been configured on the Weather Services tab of the Project Management
Preferences (PJ101000) form, the system keeps the history of requests to the weather API services. You can clear
the history for the daily field reports within the number of days specified in the Weather Processing Log Term
(Days) box of this tab of the Project Management Preferences form by using the Clear Daily Field Report Weather
Processing Log (PJ504010) form. To clear the history, you select the check boxes in the unlabeled column for the
requests that you want to delete from the history and then click Process on the form toolbar. If you want to delete
all listed requests, you click Process All.

On the Automation Schedules (SM205020) form, an automatic schedule can be configured to clear the
history.

Requests for Information: Mass-Processing of Documents

The following section explains how to mass-assign owners to requests for information.

Mass-Assigning Owners to Project Issues

You use the Assign Request for Information (PJ501000) form to assign owners to requests for information. To do
this, you select the check boxes in the unlabeled column for the requests for information that you want to assign
to owners and then click Process on the form toolbar. If you want to assign owners to all requests for information,
click Process All.
The system assigns owners according to the assignment map selected in the RFI Assignment Map box of the
Project Management Preferences (PJ101000) form.

Requests for Information: Related Reports

In the following sections, you can find details about the reports you may want to review to gather information
about requests for information.
 Additional Information | 187

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Finding Requests for Information

You can find particular documents by using the RFIs Outstanding (PJ664000) report. You can run this report for a
particular request for information, for all requests for information, or for requests for information that are filtered
by status and reason.

Printing RFI Reports

To prepare a printable form of a request for information, you use the RFI Question and Answer Form (PJ661000) form.
You can open this by clicking the Print button on the form toolbar of the Request for Information (PJ301000) form
when a particular request for information is open on the form.

Photo Logs: Mass-Processing of Documents

The following sections explain how to download photos from multiple photo logs at once and how to send them by
email.

Mass-Downloading Photos and Files from Photo Logs

On the Photo Logs (PJ405000) form, you can mass-download the files of multiple photo logs. To do this, select the
Included check box for the photo logs whose files you want to download, and click Export Photo Logs on the form
toolbar.
You can also download all the files of a particular photo log by clicking the Export Photo Logs button on the More
menu of the Photo Log (PJ305000) form.

Mass-Sending Photos and Files from Photo Logs

On the Photo Logs (PJ405000) form, you can send the files of multiple photo logs by email. To do this, select the
Included check box for the photo logs whose files you want to send, and click Email Photo Logs on the form
toolbar. The system opens the Email Activity (CR306015) form with a single ZIP file attached that contains all the
photos and files associated with the selected photo log.
You can also send all the files of a particular photo log by clicking Email Photo Logs on the More menu of the Photo
Log (PJ305000) form.

Drawing Logs: Related Report

In the following section, you can find details about a report you may want to review to gather information about
drawing logs.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.
 Additional Information | 188

Printing Reports
To prepare a report with details on drawing logs, you use the Drawing Log Details (PJ653000) report. On this report,
you can view the details of all drawing logs or filter them by project, project manager, and discipline. You can also
select the Current Only check box on the Report Parameters tab of the report form to display only up-to-date
drawing logs in the report.

Drawing Logs: Mass Processing

This topic explains how to download files from multiple drawing logs at once.

Mass-Downloading Files from Drawing Logs

On the Drawing Logs (PJ403000) form, you can mass-download the files of multiple drawing logs. To do this, select
the Included check box for the drawing logs whose files you want to download, and click Download ZIP on the
form toolbar.
You can also download all the files of a particular drawing log by clicking Export Drawing Log on the form toolbar
of the Drawing Log (PJ303000) form.

Submittals: Related Report

In the following section, you can find details about a report about a particular submittal process; you may want to
print this report or send it in an email.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Generating a Print-Friendly Submittal

To prepare a printable submittal as part of its processing, you use the Submittal Form (PJ663000) report. On the
Report Parameters tab, you select the identifier of the necessary submittal in the Submittal ID box. (If you are
generating a print-friendly form of a revision of the submittal, you should also select the identifier of the necessary
revision in the Revision ID box.) You then click Run Report on the report form toolbar. You can then print the
generated submittal or send it via email.