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The normal flow of activity regarding the A|B Subcontractor Pay consists of setting up the original subcontractor items, generating subcontractor pay applications through the SOP app for original subcontract items as well as for repairs, approval of the submitted pay applications through Document Routing System and posting the approved pay applications to the Payables System.
1.Creating the subcontract - The subcontract details are set up in the Orders > Subcontract Orders screen on a job by job basis. The detail items on the SubOrder represent billable items for the subcontractor. These items will appear on the SOP app and the subcontractor can then choose the job / subcontract / detail item(s) to bill. Purchase Orders for materials can also be used with the SOP app. | 2. | Access to the SOP app - Subcontractor access to the app is set up by the System Administrator. The administrator sets up basic information about the sub within the app and the administrator can determine which features within the app are visible to the subcontractor. |
| 3. | Generating a pay application - The subcontractor logs into the SOP app and then chooses the job / subcontract / detail item(s) to bill. If a pay request for an original subcontract item is submitted online, the request will be automatically added to the Document Routing screen for approval and processing. Once an item has been billed 100%, the item is no longer visible in the SOP app as an item to bill. |
The application is also used by the subcontractor to submit completed repairs and punch list items. These entries post directly to the Project Management system.
•Repair - If the item is a repair, it will be set up as a Change Order Request in both the Project Management system and on the SubOrder. Depending on the app settings, a repair may become billable right away (indicating that the repair has automatically been added to the SubOrder) or the repair may need to be approved by the Project Manager before the sub can bill the repair from within the app. Once a repair has been billed 100%, the item is no longer visible in the SOP app as an item to bill.
oYou may optionally add A|B Alerts to send email and/or text notifications to Project Managers when repairs have been submitted.
•Punch List Item - If a completed punch list item is entered, then the entry is not billable and is added to the Project Closeout log in Project Management.
| 4. | Change Order Requests - Repairs that are submitted through the SOP app are recorded as Change Order Requests (COR) in the Project Management System. Depending on the app settings, the repair may become billable items right away which indicates that the item has been automatically added to the existing Subcontract Order as change order items. The App Administrator can set a repair dollar limit within the app, which will be applicable to all subcontractors, that will force the Project Manager to approve the repair before it becomes visible to the subcontractor as an item to bill. The PM will review the repair through the COR Log and may add additional items, such as for materials, to the COR. The PM can approve or deny the repair or even reclassify a repair as a warranty item. Approved repairs will become billable items to the customer. Approved warranty items will become visible to the subcontractor to bill through the app but will not be billable to the customer. |
| 5. | Approving a subcontractor pay application - Once the subcontractor has submitted a pay application through the app, a record is created in the Document Routing System for approval. Once the document has been reviewed and approved, the document is posted as a payable invoice through the accounting system and payment can then be processed. The posting of the pay application will affect the General Ledger, Payables, and Subcontract Orders System. The Job Cost System will utilize the information found in the Payables and Orders System to calculate totals and create reports. |
6. Printing reports - The posting of the pay application will affect reports in a variety of ways: the invoice will be included in the Accounts Payable reports, the Subcontract Order Invoice and Open Balance Reports, the Job Cost Committed Cost invoiced amounts, and the General Ledger reports.
| 7. | SOP Dashboard - The main screen in the app is called the Dashboard. From this screen, the subcontractor can print their own account status reports as well as communicate with your designated App Administrator in real-time. The sub can also view alerts of profile violations for such items as expired insurance certificates or lien releases. |
| 8. | Reconciling the SOP pay applications to the general ledger - As part of the month end reconciliation, the unpaid accounts payable should be reconciled to the general ledger. The A/P Aging Report will automatically include the approved SOP invoices that were posted through Document Routing and which have not been paid. Refer to the "Reconciliation Worksheet" in the General Ledger documentation for more information on reconciling the two ledgers. |
Note: The Subcontractor Online Payment System and A|B Alerts are add-on features to the basic accounting package. Please contact AccuBuild if you would like to add these feature
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