Common Terms Used in This Chapter

Application

The request from a subcontractor to a main contractor for full or partial payment of a contract.

Authenticated receipt document

The document that you send to a subcontractor that a subcontractor signs and returns to you to acknowledge that you withheld the value-added tax (VAT) from the payment to the subcontractor.

Certificate

The document that you send to the subcontractor, usually with the payments, as an acknowledgement of the payment. In the JD Edwards EnterpriseOne software, the SPC cascade runs programs to generate the records for the certificate. You print the document to send to the subcontractor in a separate step.

Commitment

The recognition of a future obligation. Each time that you enter a subcontract order detail line, you can have the system track the amount that you are obligated to pay and apply it to a job or project. A subcontract commitment is created when a subcontractor is contracted to provide services. The commitment is relieved when services are rendered and you initiate a progress payment. You can create journal entries for commitments at the time of purchase order, application, or certificate.

Construction Industry Training Board (CITB)

A statutory training board with the purpose of encouraging the adequate training of those employed in the construction industry. The CITB is empowered to assess a levy on certain contracts in the construction industry to raise funds for the training.

Main contractor discount (MCD)

A trade discount that the main contractor applies to the value of the contract undertaken by a subcontractor on a project. The MCD is a reduction in the final costs.

Retention

A portion of the payment that you withhold until a specified date. Retention is also called retainage.

SPC cascade

The series of programs that the system runs when you approve an application. The SPC cascade generates the journal entries for the receipt, voucher, and retention; runs the programs associated with supplier withholding and voucher splitting; and posts receipts and vouchers. Processing options enable you to use all or part of the SPC cascade.

SPC module

The software provided by the JD Edwards EnterpriseOne localization for the United Kingdom that includes the programming for entering applications and certificates; and processing the journal entries for transactions for the subcontractor construction industry in the United Kingdom. The SPC module integrates with the CIS (construction industry scheme) and supplemental CIS modules of the JD Edwards EnterpriseOne localization for the United Kingdom.