Subcontractor Payments

The Subcontractor Payments option is used to generate documents that will replace the accounts payable invoices that are received from your subcontractors. Due to the fact that invoices from your subcontractors may not be received in a timely manner, or they may not contain the same percentage of completion that has been approved for payment, AccuBuild has developed a method of creating the subcontractor's invoice for you.  

The payment sheets are based on items set up in the estimate detail file (estdetl.db) which is accessed through the Job Cost > Update Jobs > Detail Items option. The estimate detail file is used to establish the budgets and the schedule of values for each job. Each category of work receives a unique job cost phase and the Cost field represents the budget amount for that category of work. When a section of work has been subcontracted out, the Cost field represents the amount of the subcontract agreement and the item is linked to the subcontractor's client number. If the detail item has been linked to a billing phase as well, then AccuBuild can automatically create a payment sheet based on the same percentage of completion that your company has used to create the contract billing. (Keep in mind that more than one item can be linked to the same job cost phase and billing phase in order for you to create a more detailed payment sheet.)

Once the subcontract information has been detailed in the Job Cost module, then the subcontractor payment sheets can be generated through the Payables > Subcontractor Payments menu. This option contains four additional menu options:

The payment sheet for each vendor will show each contract item along with the gross amount billed through the current period, the total amount billed in previous periods, the total retention withheld and the net amount due for the current period. AccuBuild creates an invoice reference number for the current amount due and an invoice reference number for the current retention due on each subcontract. (A physical invoice is only created for the invoice that has a current amount due.) These invoices are then automatically posted through the accounting system. The payment sheets completely replace the sub's invoice, and the sub's invoice number can be used to replace the invoice reference number that AccuBuild creates, so there is no need to enter the vendor's invoice in the accounts payable system.  Be sure to set up the Payables > Properties information before attempting to process any subcontractor payment sheets through the system.

Note:  The default method for generating the subcontractor payment sheets is on a job by job basis. As of Version 9.5.0.2, an alternate method for generating the payment sheet is now available.  This method allows you to generate a payment sheet for a single subcontractor with items on multiple jobs.  In order to utilize this new feature, you would need to enable the SubPaymentSheetsPayBySub option in the System Administrator > Configuration > Accounting > Advanced Settings screen.