Using the SPC Cascade
The SPC module is designed to automate many of the processes that you need to run to:
Generate accounting entries for certificates.
Generate receipts and vouchers.
Split vouchers (optional).
Calculate withholding.
Post receipts and vouchers.
Create accounting entries for MCD, retention, commitments, and other amounts.
This implementation guide refers to the automated process as the SPC cascade. When you approve an application, the system automatically runs all of the programs to complete the printing of documents and the creation of journal entries. You can elect to run some of the processes separately without jeopardizing the data integrity. For example, instead of posting vouchers as part of the SPC cascade, you can set a processing option to prevent the automatic posting of the voucher. If you elect to prevent the automatic posting, you must post the vouchers as a separate step.
You can safely run these parts of the SPC cascade by section:
Purchase order, application entry, and certificate entry.
If you set the Approval Active processing option in the SPC - Application Maintenance (P74U0420) so that the approval process is not active, you can manually open the Certificate Entry program (P74U0425) to enter certificate information. You must then run the other parts of the process manually.
If you set the Approval Active processing option in the SPC - Application Maintenance (P74U0420) so that the approval process is active, the system runs the SPC cascade when the final approver approves the application.
Generate receipt and voucher entries for the purchase order lines and retention.
If you manually created the certificate, you set up and run the Evaluated Receipts Processing program (R43800). The Evaluated Receipts Processing program runs the EDI Inbound Invoice/Match program (R470412) and SPC Authenticated Receipt Retention Generation program (R74U0426).
Withholding calculations and entries.
After you generate the receipts and voucher lines for the purchase order and application, you can set up and run the CIS Pre-Withholding Validation program (R74U4030A), The CIS Pre-Withholding Validation program runs the SPC Voucher Splitting program (R74U0411) and the Calculate Withholding Tax program (R74U04580).
Post receipt and voucher batches.
Run the General Ledger Post program (R09801) to post the receipt and voucher batches.
Whether you elect to run the SPC cascade in its entirety or run it in sections, you process the payments for the subcontractor using the automatic payment process or the manual payment process. You can also print a certificate, an authenticated receipt for VAT, or a document that works as both the certificate and the authenticated receipt to send with the payment.