Example of Contract Line Invoicing
This example illustrates how to create a separate invoice line for each contract line.
Scenario
You are required to prepare an invoice using a standardized method of construction contract billing and to invoice the work in accordance with a schedule of values. A schedule of values, or a contractor's application for payment, typically contains a detailed description of the work, value of the completed work, value of materials, and value of the balance required to finish the work.
The schedule of values drives the invoicing, which takes place by invoice line. To meet this request, you capture invoice amounts by contract line. For contract lines with a sell intent, item, and project-based line type source, invoicing must use invoice formats with grouping option that includes contract line. Usage of invoice formats with grouping option results in the transfer of inventory item and related attributes from contract line to invoice line in Oracle Fusion Receivables. These contract line attributes come from the currently or previously active, expired, hold, or closed contract version.
Schedule of Values
Your contractor's schedule of values has the following categories:
-
Original Contract Sum
-
Net Change by Change Orders
-
Contract Sum to Date
-
Total Completed and Stored to Date
-
Less Previous Certificates for Payment
-
Current Payment Due
-
Balance to Finish
The invoice must contain separate invoice lines for each category.
To create individual invoice lines for each category in the schedule of values, create a contract line for each category. The invoice formats for the contract lines bill plan must be grouped by contract line. The following table summarizes the setup of key contract and project features.
|
Key Feature |
Configuration |
|---|---|
|
Contract Line |
Create one contract line for each schedule of values category. |
|
Invoice Format |
Create one labor, one nonlabor, and one event invoice formats, all with grouping option of contract line and all. |
|
Bill Plan |
|
Resulting Invoice Lines
Expenditure items and events charged to projects associated with the contract lines resulted in the following invoice lines after invoice generation.
|
Schedule of Values Category |
Invoice Line Number |
Invoice Line Amount |
|---|---|---|
|
Original Contract Sum |
1 |
$8,425,000 |
|
Net Change by Change Orders |
2 |
$0 |
|
Contract Sum to Date |
3 |
$8,425,000 |
|
Total Completed and Stored to Date |
4 |
$168,500 |
|
Total Earned |
5 |
$168,500 |
|
Less Previous Certificates for Payment |
6 |
$75,000 |
|
Current Payment Due |
7 |
$93,500 |
|
Balance to Finish |
8 |
$8,256,500 |