## Setting Up Subcontract Management

This chapter provides an overview of system setup and discusses how to:

- Set up projects or jobs.

- Set up commitments.

- Convert data to the Log Master table.

### Understanding System Setup

Before you use the JD Edwards EnterpriseOne Subcontract Management system, you must define setup information. Much of the defining of setup information for the JD Edwards EnterpriseOne Subcontract Management system is performed within the JD Edwards EnterpriseOne Procurement system and other EnterpriseOne systems.

This information directs the system to accommodate specific business needs. For example, you must define the purchasing cycle through which the system processes each order type that you use (requisitions, blanket orders, purchase orders).

This section discusses:

- JD Edwards EnterpriseOne Procurement system setup.

- Other system setup.

- AAI tables for the financial system.

#### JD Edwards EnterpriseOne Procurement System Setup

You set up this information for the JD Edwards EnterpriseOne Procurement system:

Order Line Types

You must define codes that determine how the system processes a detail line on an order. You can also enable additional functionality such as subcontract retention, expense at voucher match, and service units.

See Defining Order Line Types.

Order Activity Rules

You must establish the sequence of steps in the purchasing cycle through which the system processes each order.

See Setting Up Order Activity Rules.

Constants

You must define constants for these types of default information:

- Branch/plant constants control daily transactions within a branch/plant.

- Item availability constants define how the system calculates the quantity of items available at a branch/plant.

- System constants provide default information that applies throughout the system.

- Batch control constants determine whether an application requires management approval and batch control.

  See Setting Up Procurement Constants.

Automatic Accounting Instructions

You must set up automatic accounting instructions (AAIs) to determine the general ledger accounts for which the system creates journal entries for purchasing transactions.

See Setting Up AAIs.

Tolerance Rules

You can create tolerance rules to specify the number or percentage by which the quantity, unit cost, and extended amount can change on a detail line.

See Creating Tolerance Rules.

Order Hold Information

You can set up information that the system uses to place orders on hold.

See Setting Up Order Hold Information.

Landed Costs

You can set up landed costs to specify costs that exceed the purchase price of an item, such as delivery charges, broker fees, and so forth.

See Setting Up Landed Costs.

Nonstock Items

You can set up information for items that you do not account for as part of the inventory.

See Setting Up Nonstock Items.

Purchase Order Templates

You can set up templates for use during purchase order entry. Templates contain items that you frequently order from a supplier.

See Setting Up Templates for Purchase Orders.

Model Logs

You can set up model logs for use during log creation. Model logs contain items that you frequently use in a log.

See Creating Model Logs.

#### Other System Setup

You set up this information in other systems, including the JD Edwards EnterpriseOne Inventory Management system and the JD Edwards EnterpriseOne General Accounting system:

Messages

You can predefine messages to attach to orders.

See Setting Up Messages.

See Defining Print Messages.

See Subcontract Order Clauses.

Default Location and Printers

You can define default information for a specified user or workstation terminal, including a branch/plant, an approval route, and a printer output queue.

See Setting Up Default Location Information.

Next Numbers

You can use the next numbers facility to automatically assign the next available number to document types and address book numbers.

See Setting Up Next Numbers.

Tax Processing

You must set up tax processing information for the system.

User-Defined Codes

You can set up user-defined codes (UDCs) to customize each system in the environment.

Item Cross-References

You can define item cross-reference numbers to link the internal item numbers to alternate item numbers, such as those maintained by the suppliers.

See Setting Up Next Numbers.

#### AAI Tables for the Financial System

Eight categories of AAIs relate to the JD Edwards EnterpriseOne Subcontract Management system. Each of these categories has a unique prefix that defines the way it is used in the system.

- Freight distribution (PCFRTD)

  Use this AAI to determine which account to use when you enter freight distribution.

- Non-billable retainage (PCNBRT)

  Use this AAI to determine which account to use for nonbillable retainage.

- Retainage payables (PCRETN)

  Use this AAI to determine which retention payable account to use when you create contracts that include retainage.

- Deferred VAT tax payables (PCVATP)

  Use this AAI to determine the account for deferred value-added tax (VAT) payables. This AAI applies only when the VAT tax processing option is set and you use a tax type of C or V.

- Deferred VAT tax recoverables (PTVATD)

  Use this AAI to determine the account for deferred VAT recoverables. This AAI applies only when the VAT tax processing option is on and you use a tax type of C or V.

- Default cost types (objects) (CD)

  Use this AAI to specify the default cost type (object) for purchase order detail lines that are left blank.

- Specific contract cost types (CT)

  Use this AAI to determine the cost types (objects) that are allowed for contracts.

- Range of contract cost types (CR)

  Use this AAI to determine a range of valid cost types for contracts.

See Setting Up Automatic Accounting Instructions.

AAIs for Freight Distribution (PCFRTD)

Use this AAI to determine which account to use when you enter freight distribution.

You must define the PCFRTD AAI before the Voucher Match program (P4314) can process freight distribution.

AAIs for Non-Billable Retainage (PCNBRT)

Use this AAI to determine which account to use for nonbillable retainage.

You must define the PCNBRT AAI before the Progress Payments program (P4314) can process vouchers with nonbillable retainage.

AAIs for Retainage Payables (PCRETN)

Use this AAI to determine which retention payable account to use when you are creating contracts that include retainage.

If you do not specify a company, the system uses the default company number (00000). You should set the default company account as the account most commonly used by companies on the system. Then you only need to set up distinct PCRETN AAIs for companies with different accounts.

Retainage records that are created on the Progress Payments form require the object account associated with the PCRETN AAI to hold retained balances. You must define the PCRETN AAI before the Progress Payments (P4314) program can create retainage vouchers.

AAIs for VAT Payables (PCVATP)

Use this AAI to determine the account for deferred VAT payables. If you do not set up this AAI, the general ledger post ignores the deferred VAT when both of these statements are true:

- The processing option for VAT with retainage is set.

- You use a tax type of C or V.

If you do not specify a company, the system uses the default company number (00000). You should set the default company account as the account most commonly used by companies on the system. Then you need to set up distinct PCVATP AAIs only for companies with different accounts.

When you release retainage, this AAI reverses debits and credits with the PTVATD AAI.

AAIs for VAT Recoverables (PTVATD)

Use this AAI to determine the account for deferred VAT recoverables. If you do not set up this AAI, the general ledger post ignores the deferred VAT when both of these statements are true:

- The processing option for VAT tax with retainage is set.

- You use a tax type of C or V.

You must follow these guidelines on the AAIs form when you set up the PTVATD AAIs:

- You must specify a business unit and an object account.

- You can specify a company.

If you do not specify a company, the system uses the default company number (00000). You should set the default company account as the account most commonly used by companies on the system. Then you need to set up distinct PTVATD AAIs only for companies with different accounts.

When you release retainage, this AAI reverses debits and credits with the PCVATP AAI.

AAIs for Default Cost Types (CD)

Use this AAI to determine the default cost types (objects) for the contracts.

You must follow these guidelines when you set up CD AAIs:

- The first two characters must be CD.

- The second two characters indicate the contract type, such as OS and OP. You must create a separate CD AAI for each contract type. You must also define the contract types in the UDC table for document types (00/DT).

- Do not assign company, business unit, or subsidiary to the CD AAIs.

If you define a CD AAI for a contract type, the system automatically supplies the cost type associated with the CD AAI.

AAIs for Specific Contract Cost Types (CT)

Use this AAI to determine the allowable cost types (objects) for the contracts.

You must follow these guidelines when you set up CT AAIs:

- The first two characters must be CT.

- The second two characters indicate the contract type, such as OS and OP.

  You must create a separate CT AAI for each contract type. You must also define the contract types in the UDC table for document types (00/DT).

- The last two characters must be a numeric value from 01 to 99.

  This value uniquely identifies each valid cost type within the contract type.

- Do not assign company, business unit, or subsidiary to the CT AAIs.

If you define more than one CT AAI for a contract type, the system does not supply a cost type. You must enter a cost type for each commitment. The system compares the cost type that you enter against the CT AAIs for the contract type to ensure that the cost type is valid.

AAIs for a Range of Contract Cost Types (CR)

Use this AAI to determine a range of valid cost types for the contracts.

You must follow these guidelines when you set up CR AAIs:

- The first two characters must be CR.

- The second two characters indicate the contract type, such as OS and OP.

  You must also define the contract types in the UDC table for document types (00/DT). If you use base agreements, you must set up a range of CR AAIs for the base agreement contract types. For example, if the base agreement contract type is defined as BC, you must set up a CRBCxx range of AAIs.

- The last two characters must be a numeric value from 01 to 99.

  These values must always occur in sequential pairs that represent ranges. For example, CROP01 is associated with CROP02, CROS97 is associated with CROS98, and so on.

- Do not assign company, business unit, or subsidiary to the CR AAIs.

When you enter a cost type for the contracts, the system first compares it to the CT AAIs and then to the CR AAIs to ensure that the cost type is valid.

### Setting Up Projects or Jobs

Before you use the JD Edwards EnterpriseOne Subcontract Management system, you should set up the project or job information in the JD Edwards EnterpriseOne Job Cost system. A project is composed of one or more jobs. When you set up a job, you include information regarding the work to be done. When you set up a project, you include the details of the overall project and the details of each job within the project.

After you enter the project or job information, you can use the JD Edwards EnterpriseOne Subcontract Management system to create and maintain contracts for each of the subcontractors on jobs.

You can customize the project or job information to the business needs. Consider these examples:

- You are contracted to build an office building. The office building is the project, and each floor is a separate job.

- You are contracted to build the houses in a subdivision. The subdivision is the project, and each house is a separate job.

You must first create a job master record for each of the projects or jobs. If you set up a project, you must also set up each of the jobs within the project.

After you set up the projects or jobs, you must set up a cost code structure for each job. A cost code structure is a list of all of the accounts that apply to a job. You use the chart of accounts to track and manage all of the costs that are associated with a job.

For example, assume that you are contracted to construct an office building. You must first create a master record for the entire office building. You can then set up the jobs in the building. In this case, you set up each floor of the building as a separate job. After you set up the jobs, you set up the cost code structure for each job. For example, the cost code structure for the third-floor job might include accounts for plumbing, drywall, electrical, and so on.

You can also set up multiple jobs within a company at the same time.

Creating a Job Master Record

Before you use the JD Edwards EnterpriseOne Subcontract Management system, create a job master record for each of the projects or jobs. A job master record includes basic identifying information about the project or job.

Setting Up Jobs Within a Project

After you create a job master record for a project, you must set up the jobs within the project. For example, if the project is an office building, you might set up each floor of the building as a separate job.

Assume that you set up job number 6000 for the office-building project. You should set up the floor 1 job as job 6001, the floor 2 job as job 6002, the floor 3 job as job 6003, and so on.

Creating the Cost Code Structure

After you set up jobs, you must create a cost code structure for each job in the JD Edwards EnterpriseOne Job Cost system. A cost code structure is a list of all of the cost codes and cost types that apply to a job.

You use the cost code structure to track and manage all of the costs that are associated with a job. For example, the cost code structure for the floor 1 job might include accounts for plumbing, drywall, electrical, and so on.

See Also

Setting Up Job Master Records

Creating Cost Code Structures

Entering Cost Code Schedules

### Setting Up Commitments

This section provides overviews of commitments, commitment tracking, and commitment relief, and discusses how to:

- Set up commitment tracking.

- Set up commitment relief.

See Also

Working with Commitments

Reviewing Commitment Information for Subcontracts

Reviewing Journal Entries for Receipt Transactions

Reviewing and Posting Journal Entries for Voucher Transactions

Using Receipt Processing

#### Understanding Commitments

A commitment is the recognition of a future obligation. Each time 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.

You can monitor individual commitments for a job or project to verify the types of subcontracts being made. You can review the total commitment amount for a job or project to verify that it does not exceed the budget.

When you create progress payments, you can have the system relieve commitments. To do this, the system subtracts the individual commitment amount from the total commitment amount for the job or project.

You can also have the system:

- Create an audit trail in the P.O. Detail Ledger File - Flexible Version table (F43199).

- Recalculate amounts in the account balance ledgers.

#### Understanding Commitment Tracking

You can set up commitment tracking to monitor subcontract obligations for a specific job or project. Each time you enter a subcontract detail line, the system recognizes the amount on the line as a commitment. You can review individual commitments and the total amount of outstanding commitments for a specific job or project.

Commitment tracking applies only to purchases for nonstock items and services (subcontracts). You must charge each detail line to a general ledger account number. The business unit component of the general ledger account number represents the job or project for which you are tracking commitments.

For a detail line to be eligible for commitment tracking, it must be associated with an order type that is listed in UDC 40/CT and it must have a line type with an Inventory Interface code of A or B. These codes indicate that the line is charged directly to a general ledger account number.

See Defining Order Line Types.

Each time you enter a subcontract detail line for which commitment tracking is applicable, the system records the amount in the purchase amount (PA) ledger and the purchase unit (PU) ledger.

The PA ledger contains committed subcontract amounts. The PU ledger contains committed subcontract units.

See Also

Setting Up Commitment Tracking

#### Understanding Commitment Relief

When you create progress payments, you can have the system relieve the corresponding commitment amount. To relieve a commitment, the system subtracts the individual commitment amount from the total commitment amount for the job or project.

You set up commitment relief to determine whether the system relieves commitments automatically. The system relieves commitments when you post vouchers generated from progress payments to the general ledger.

Important! When completing commitment relief, the Job Cost Projections processing option must be set to No if you are in a nonjob cost environment.

Note. The default value in the Job Cost Projections processing option is Yes.

#### Form Used to Set Up Commitments

Form Name | FormID | Navigation | Usage
Job Cost Constants | W0026A | Subcontract Setup/Rebuild (G43D411), Commitment Relief Constants On the Work with Job Cost Constants form, click Add. | Set up commitment relief to determine whether the system relieves commitments automatically.

#### Setting Up Commitment Tracking

You specify the order types for which the system is to track commitments in UDC 40/CT. For example, if you want the system to track commitments on orders and requisitions, you must specify these order types.

See JD Edwards EnterpriseOne Tools 8.98 System Administration Guide

#### Setting Up Commitment Relief

Access the Job Cost Constants form.

Commitment Relief | Enter an option that specifies whether the system automatically relieves open commitments when you post accounts payable vouchers to the general ledger. These vouchers are related to noninventory purchase orders and contract progress payments. Consider selecting this option to relieve commitments automatically when you post progress payment vouchers.

### Converting Data to the Log Master Table

This section provides an overview of converting data to the Log Master table and discusses how to convert data to the Log Master table.

#### Understanding Converting Data to the Log Master Table

You can convert data from the JD Edwards World Subcontract Management system to the JD Edwards EnterpriseOne Subcontract Management system. To do so, you must run two conversion programs. You must first run the TC from F4303 to F4305 program (R894305) and then run the F4303 - F4305 Media Object Conversion program (R894305A). The system stores all the data that you convert in the Log Master table (F4305).

Oracle recommends that after you convert the data, you run all reports using data from the Log Master table (F4305).

#### Converting Data to the Log Master Table

To convert data to the log master table:

1. Enter BV in the Fast Path field.

2. Enter R894305 in the Batch Application field.

3. Locate and run a version.

4. Enter BV in the Fast Path field.

5. Enter R894305A in the Batch Application field.

6. Locate and run a version.