## (GBR) Using ACM

This chapter provides an overview of Application and Certificate Management (ACM) and discusses how to:

- Enter an application for payment.

- Print pre-certificates.

- Enter certification information.

- Work with non-evaluated certificates.

- Work with evaluated certificates.

- Print evaluated certificates.

- Correct uncertified applications.

- Supersede uncertified applications.

- Reverse certificates.

### Understanding Application and Certificate Management

Subcontractors in the construction industry can submit an application for partial payment to the contractor when the job is partially completed. The subcontractor indicates on the application what portion of the job has been completed. The contractor then sends a site engineer to the work site to certify the amount of work that has been completed.

You can use Application and Certificate Management (ACM) within the JD Edwards EnterpriseOne Procurement system to manage applications and certificates. To work with ACM, complete these steps:

1. Enter a purchase order for the subcontracted work.

2. When you receive an application from the subcontractor, enter the amount of the application against the purchase order.

3. Print a precertificate that the site engineer uses to indicate the amount that is to be certified.

4. After the inspection, enter the certificate information against the purchase order.

5. Print a certificate for the subcontractor to notify him or her of the amount that was certified.

   You can create either an evaluated certificate or a non-evaluated certificate. For evaluated certificates, the system automatically generates a payment voucher. For nonevaluated certificates, the subcontractor must submit an invoice.

6. For non-evaluated certificates, enter a voucher after you receive the invoice.

7. Pay the voucher.

### Entering an Application for Payment

This section provides an overview of applications for payment, lists a prerequisite, and discusses how to enter applications.

#### Understanding Applications for Payment

When a subcontractor has completed a portion of a contracted job, the subcontractor can submit an application for partial payment. On the application, the subcontractor indicates the amount of work completed as a flat monetary amount, a percentage, or as a number of units. You can enter either the cumulative quantity or amount that has been completed for the purchase order, or the quantity or amount that has been completed during the period.

When you enter an application, you create a subcontractor document with a blank ACM status. Subcontractor documents are stored in the F74U0141 table and are associated with purchase orders.

#### Prerequisite

Enter and print a purchase order for the contracted job.

#### Forms Used to Enter an Application for Payment

Form Name | FormID | Navigation | Usage
Work with Application/Certificate Information | W74U0141A | Daily Processing (G74U0110), Enter Application/Certificate | Work with applications for payment and certificate information.
Add Application Information | W74U0141B | Select a purchase order and line item on the Work with Application/Certificate Information form, and then select Add Applications from the Row menu. | Add application information.

#### Entering Applications for Payment

Access the Work with Application/Certificate Information form.

### Printing Pre-certificates for ACM

This section provides an overview of pre-certificates and discusses how to print a pre-certificate.

#### Understanding Pre-certificates

You print a pre-certificate after you have received and entered a subcontractor's application. The pre-certificate shows details about the application and the purchase order. The site engineer uses the pre-certificate as a turnaround document to record the actual amount that is certified for the application.

Printing a pre-certificate advances the subcontractor document from the incoming status to the outgoing status that you specify in the processing options. The default incoming status is blank (Application Entered), and the default outgoing status is N (Pre Certificate Print).

#### Printing a Pre-certificate

Select Daily Processing (G74U0110), Pre Certificate Print.

### Entering Certification Information

This section provides an overview of certification information and discusses how to enter information about certification.

#### Understanding Certification Information

After the site engineer has visited the work site and verified the amount of work that has been done, you enter the amount that the site engineer has certified. This amount is used to generate a receipt and can be cross-referenced when you create a voucher to pay the subcontractor.

When you enter certification information, the system automatically creates a receipt for the work that is completed.

Entering certificate information advances the subcontractor document to Certificate Entered status that you set up in the ACM - Work With Application Certificate Constants program (P74U140). The default status is C (Certificate Entered).

#### Form Used to Enter Certification Information

Form Name | FormID | Navigation | Usage
Add Certificate Information | W74U0142C | Daily Processing (G74U0110), Enter Application/Certificate Select a subcontractor document and line item on the Work with Application/Certificate Information form, and then select Add Certificates from the Row menu. | Add certificate information.

#### Entering Certification Information

Access the Add Certificate Information form.

G/L Date | Specify a date that identifies the financial period to which the transaction is to be posted. The company constants specify the date range for each financial period. You can have as many as 14 periods. Generally, period 14 is used for audit adjustments. The system validates this field for PBCO (posted before cutoff), PYEB (prior year ending balance), PACO (post after cutoff), and WACO (post way after cutoff) messages.
Certificate/Receipt Date | Specify the date when you received this purchase order line.
Receipt Document | Specify a number that identifies the original document, such as a voucher, invoice, or journal entry. On entry forms, you can assign the document number or let the system assign it using the Next Numbers program (P0002). Matching document numbers (DOCM) identify related documents in the JD Edwards EnterpriseOne Accounts Receivable and JD Edwards EnterpriseOne Accounts Payable systems. Examples of original and matching documents are: Accounts Payable Original document - voucher Matching document - payment Accounts Receivable Original document - invoice Matching document - receipt In the JD Edwards EnterpriseOne Accounts Receivable system, the following transactions simultaneously generate original and matching documents: deductions, unapplied receipts, chargebacks, and drafts.
Certificate Cumulative Qty (certificate cumulative quantity) | Specify the number of units that the site engineer has certified as complete for a specific line item on a purchase order. If the site engineer has certified more than one application, this number is the total number of units that the site engineer has certified for the line item.
Certificate Cum Amount (certificate cumulative amount) | Specify the amount of payment (in base currency) that the site engineer has certified for a specific line item on a purchase order. If the site engineer has certified more than one application, this amount is the total amount of all the certifications for the line item.

### Working with Non-Evaluated Certificates

This section provides an overview of non-evaluated certificates and discusses how to print non-evaluated certificates.

#### Understanding Non-Evaluated Certificates

You print non-evaluated certificates for subcontractors who want to verify the certificate and submit an invoice before being paid. The system creates an open receipt for the amount of the certificate when you print a non-evaluated certificate. When you receive an invoice for the certified work, you enter a voucher and match it to the open receipt.

You print certificates after the site engineer has inspected the work site and you have entered the certificate information. You give the certificate document to the subcontractor as a record of the certified value that is due for payment.

You print nonevaluated certificates for subcontractors who want to verify the certificate and submit an invoice before being paid. The system creates an open receipt for the amount of the certificate when you print a non-evaluated certificate. When you receive an invoice for the certified work, you enter a voucher and match it to the open receipt.

Printing a non-evaluated certificate advances the subcontractor document from the incoming status to the outgoing status that you specify in the processing options. The default incoming status is C (Certificate Entered), and the default outgoing status is I (Non-Evaluated Certificate Print).

Important! Do not use the Speed Status Change program (P0411S) for ACM processing.

#### Printing Non-Evaluated Certificates

Select Daily Processing (G74U0110), Certificate Print.

### Working with Evaluated Certificates

This section provides an overview of evaluated certificates, lists a prerequisite, and discusses how to settle evaluated receipts.

#### Understanding Evaluated Certificates

Evaluated certificates are typically used for small subcontractors who are not able to produce their own invoices. You print evaluated certificates, also known as authenticated receipts, after you have processed the payment for the subcontractor. You give the certificate to the subcontractor as a record of the value of the certificate that is due to the subcontractor.

You print certificates after the site engineer has inspected the work site and you have entered the certificate information. Evaluated certificates are typically used for small subcontractors who are not able to produce their own invoices.

To create an evaluated certificate for a subcontractor, you must first settle the receipt that the system created when you entered certificate information. Settling the receipt generates a corresponding voucher in the F0411 table. You then generate a payment for the subcontractor and print an evaluated certificate to accompany the payment.

Important! Do not use the Speed Release program for ACM processing.

Settling evaluated receipts advances the subcontractor document from the Certificate Entered status to the A/P Voucher Generated status. You set up both statuses in the ACM - Work With Application Certificate Constants program (P74U0140).

#### Prerequisite

Use the Evaluated Receipt (AVCH) field in the Supplier Master to set up subcontractors to receive evaluated receipts.

#### Settling Evaluated Receipts

Select Receipts Matching and Posting (G43A15), Evaluated Receipt Settlement.

### Printing Evaluated Certificates

This section provides an overview of evaluated certificate printing, lists a prerequisite, and discusses how to print an evaluated certificate.

#### Understanding Evaluated Certificate Printing

You print evaluated certificates, also known as authenticated receipts, after you have processed the payment for the subcontractor. You give the certificate to the subcontractor as a record of the value of the certificate that is due to the subcontractor.

Printing an evaluated certificate advances the subcontractor document from the incoming status to the outgoing status that you specify in the processing options. The default incoming status is P (Certificate Entered), and the default outgoing status is F (Evaluated Certificate Print).

#### Prerequisite

Process payments for the subcontractor.

#### Printing an Evaluated Certificate

Select Daily Processing (G74U0110), Certificate Print.

### Correcting Uncertified Applications

This section provides an overview of uncertified application correction and discusses how to correct an uncertified application.

#### Understanding Uncertified Application Correction

If an application has not yet been certified, you can correct an application amount that was entered in error, or enter an updated application that the subcontractor has submitted. If you need to change an application that has been certified, if you need to change the certificate; or if you decide not to honor the certificate for some reason, you must reverse both the receipt and the certificate.

If you make a mistake when you enter an application amount, you can update the application amount if the application has not yet been certified.

#### Forms Used to Correct Uncertified Applications

Form Name | FormID | Navigation | Usage
Work with Application/Certificate Information | W74U0141A | Daily Processing (G74U0110), Enter Application/Certificate | Work with applications for payment and certificate information.
Maintain Application Information | W74U0141D | Select a purchase order and line item on the Work with Application/Certificate Information form, and then select Maintain Applications from the Row menu. | Maintain application information.

#### Correcting an Uncertified Application

Access the Work with Application/Certificate Information form.

### Superseding Uncertified Applications

This section provides an overview of superseded applications and discusses how to supersede an uncertified application.

#### Understanding Superceded Uncertified Applications

If a subcontractor submits an updated application before the existing application is certified, you can add the updated application to the subcontractor document. The system maintains a record of the original application and assigns it an ACM status of S (Application Superceded). The new application replaces the superseded application.

#### Forms Used to Supersede Uncertified Applications

Form Name | FormID | Navigation | Usage
Work With Application/Certificate Information | W74U0141A | Daily Processing (G74U0110), Enter Application/Certificate | Work with applications for payment and certificate information.
Add Application Information | W74U0141B | Select a subcontractor document and line item on the Work With Application/Certificate Information form, and then select Add Applications from the Row menu. | Maintain application information.

#### Superseding an Uncertified Application

Access the Work with Application/Certificate Information form.

### Reversing Certificates

This section provides an overview of certificate reversal, lists prerequisites, and lists the forms used to reverse a certificate.

#### Understanding Certificate Reversal

When you enter certificate information, the system automatically creates a receipt for the work that has been completed. If you discover an error in the application or certificate, or if you decide not to honor the certificate for some reason, you must reverse both the receipt and the certificate. You can then perform any of these tasks:

- Delete the application.

- Correct the application.

- Delete the certificate.

- Correct the certificate.

- Close the purchase order.

  Note. To change a certificate, you must reverse all certificates, receipts, and vouchers that are subsequent to the certificate that you are changing.
  You must use version ZJDE7002 of the Purchase Receipts Inquiry program (P43214) to reverse receipts for subcontractor documents. You can access this version by following the steps shown. Do not access Purchase Receipts Inquiry from a menu.

#### Prerequisites

Here are the prerequisites for reversing a certificate:

- If you have created a voucher to pay the certified amount, delete or void the voucher.

- Set up the user preferences with a country preference code of UK.

#### Forms Used to Reverse Certificates

Form Name | FormID | Navigation | Usage
Work With Application/Certificate Information | W74U0141A | Daily Processing (G74U0110), Enter Application/Certificate | Work with applications for payment and certificate information.
Work With Purchase Receipts | W7470214A | Select a subcontractor document and line item on the Work with Application/Certificate Information form, and then select Open Receipts from the Row menu. | Work with purchase receipts.
Maintain Certificate Information | W74U0141D | Select a subcontractor document and line item on the Work With Application/Certificate Information form, and then select Cert/Rcpt Reversal from the Row menu. | Maintain certificate information. Note that if you leave the Rec Opt field blank for any line, the system deletes the certificate values for that line.