This chapter contains these topics:
You use the JD Edwards World Subcontract Management system with other JD Edwards World systems to manage the day-to-day and long term details of contracts, payments, and commitments that are associated with your jobs. In addition, you can perform any of the following with the Subcontract Management system:
Create and maintain contracts for the subcontractors on your jobs
Establish payment guidelines and make payments against your contracts
Track the costs you have paid against a job and the costs you are committed to in the future
Make up-to-the-minute inquiries on contract information
Input change orders for your contract commitments
Generate status reports for your contracts and commitments
Create base agreements for your contracts
When you create a new contract, you enter subcontractor information, the work to be done, contract commitments, dates, log items, and so on. After you enter a contract, you can change the base agreement details, enter commitment change orders, and track the completion of submittals and transmittals.
You can then enter and release progress payments, or hold progress payments. Progress payments are payments that you make to your subcontractors as they make progress against their jobs.
This chapter includes the following:
The Subcontract Management system integrates with the following JD Edwards World systems to help you manage your contracts easily and efficiently.
| System | Description |
|---|---|
| Change Management | You can access the Change Management system to review the details of a change request that is associated with a contract. You can also transfer the details of a change request to the Subcontract Management system. The contract number is the key between a contract and its associated change requests. |
| Job Cost | The Subcontract Management system automatically updates committed units and amounts to accounts in the Job Cost system. You can manage your contract budgets and cost projections through the Job Cost system. |
| Work Order | You can associate line item commitments on the Subcontract Entry screen to a work order in the Work Order system. Costs from the line item are automatically charged against the work order in the Job Cost, Subcontract Management, and General Accounting systems. |
| Procurement | The Subcontract Management system shares a common database with the Procurement system. You can view the purchase orders and contract commitments that are related to a project on one inquiry screen that use the same commitment ledger. Both systems also release commitments in the same manner through the Accounts Payable system. |
| Accounts Payable | The Accounts Payable system automatically updates the appropriate accounts payable records when you enter progress payments, release retainage, or make payments against a contract. Retainage is a percentage of the contract amount that is held until a specific date after the completion of the work. You can also complete other accounts payable tasks from the Subcontract Management system, such as designating joint or alternate payees. |
| General Accounting | The Subcontract Management system automatically updates the general ledger in the General Accounting system when you create payment vouchers for contracts. All audit trails for Subcontract Management vouchers and payments are maintained in the general accounting ledgers. |
| Address Book | The Subcontract Management system accesses the Address Book system for the addresses of suppliers, subcontractors, and business owners. You can use this information to print payments, reports, and so on. You can access the Address Book system from a Subcontract Management inquiry screen to find specific subcontractors. |
The JD Edwards World Subcontract Management system has many features to help you manage your contracts. You can use the Subcontract Management system to:
Work with contracts
Work with commitments
Process payments
You create contracts for the subcontractors on your jobs. Contracts specify details such as the contractor information, work to be done, contract commitments, dates, log items, such as submittals and transmittals, and so on. A submittal is information a subcontractor must provide to you. A transmittal is information you must provide to a subcontractor. The JD Edwards World Subcontract Management system offers you the following features to make your work with contracts as efficient as possible.
| Feature | Description |
|---|---|
| Multiple contract types | You can manage a variety of contract types, including:
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| Base agreement processing | You can create base agreements. A base agreement allows you to set up various jobs so that you do not have to specify distribution commitments for each job individually. This allows you to manage contracts in which you have various categories of jobs, but with jobs in each category having identical costs. |
| Contract reporting | You can process a variety of reports regarding your contracts. These reports can include:
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| Change order updating | Change orders direct your system to change the amount of money committed to a contract. You can create and update change orders easily. Change orders can stand alone or you can roll them into the original contract for payment. |
| Supplemental data tracking | Many contracts require supplemental information in addition to the basic contract information. This information can be in the form of submittals, transmittals, and other user defined log types. The Subcontract Management system provides the following capabilities for managing supplemental data:
In addition, you can enter textual information regarding supplemental data and run reports about various log entries. You can also set up a model log entry for each contract type on your system, and then copy and revise those models in your actual contracts. |
| Contract inquiries | You can review the following contract information:
|
A commitment is the money that you designate to pay for a contract. The JD Edwards World Subcontract Management system provides you with the following features to make your work with contract commitments as efficient as possible.
| Commitment Feature | Description |
|---|---|
| Automatic audit trails | You can maintain an audit trail for committed costs. You can access the Accounts Payable and General Accounting systems for an audit trail of progress payments. |
| User defined commitment distribution rules | You can set up your system for the following commitment distribution purposes:
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| Tax capabilities | You can assess a number of taxes to your progress payments, including:
The Subcontract Management system also creates journal entries for the General Accounting and Job Cost systems and updates tax files. |
You process payments against your contracts as your subcontractors make progress against their jobs. You charge payments against the money you commit for a contract. The JD Edwards World Subcontract Management system offers many features you can use to process progress payments, including:
| Payment Processing Features | Description |
|---|---|
| Flexible pricing methods for commitments | You can use the following pricing methods for your contract commitments:
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| Payment options | You can use the following options when you process your progress payments:
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| Efficient progress payments | The JD Edwards World Subcontract Management system helps you manage your progress payments by:
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| Multi-currency processing | You can set up multi-currency if you must pay subcontractors in a currency other than your company's base currency. For example, you can make a progress payment in Euros if your company's base currency is U.S. dollars. See the JD Edwards World Multi-Currency Guide for more information about set up and using multi-currency. |
The Subcontract Management system uses the following tables:
| Table | Description |
|---|---|
| Accounts Payable Ledger (F0411) | Contains information on progress payment vouchers. You can use this table for reports and online review of amounts for which you bill and pay. |
| Account Ledger (F0911) | Contains information about general ledger transactions that result from progress payment distribution. You can use this table for reduction of open commitments and actual-to-date balances in the General Accounting and Job Cost systems. |
| Subcontract Management/ Purchase Order Heading (F4301) | Contains the identifying information from the Subcontract Entry screen. You use this table to store a contract number, supplier number, and other data that applies to a total contract. |
| Subcontract Management/ Purchase Order Detail (F4311) | Contains the information from the Commitment Revisions screen. This table stores detail distribution information about a contract. |
| Purchase Order Detail Ledger (F43199) | Contains commitment audit trail information. The system uses this table to build the account balances for commitments. This table also stores information for the Procurement system. |
| Table | Description |
|---|---|
| User Defined Codes (F0005) | The system uses this table to store category codes and other fields you modify to suit your business needs. This table also provides descriptions for such fields. |
| Job/Business Unit Master (F0006) | The system stores your jobs in this table. The system also uses this table to compare information about your jobs to the information you enter in the Subcontract Management/Purchase Order Heading table (F4301) and the Subcontract Management/Purchase Order Detail table (F4311). |
| Automatic Accounting Instructions (F0012) | The system stores valid cost types, retainage accounts, and so on in this table. |
| Supplier Master (F0401) | The system uses this table to validate the supplier (subcontractor) number you attach to a contract. |
| Account Master (F0901) | The system uses this table to store and validate id account numbers and posting edit codes. This table provides the default detail information in the Subcontract Management/Purchase Order Detail table (F4311) It also provides the account description and unit of measure on commitment distribution lines of a contract. |
| Account Balances (F0902) | Contains the following:
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| Contract Log Detail (F4303) | Contains log information that you enter on the Subcontract Log Revisions screen. |
| Contract Log Text (F4304) | Stores textual information about a log entry. |
| Contract Distribution Text (F4404) | Stores textual information about a commitment distribution line of a contract. |