## Getting Started with JD Edwards EnterpriseOne Subcontract Management

This chapter discusses:

- JD Edwards EnterpriseOne Subcontract Management overview.

- JD Edwards EnterpriseOne Subcontract Management integrations.

- JD Edwards EnterpriseOne Subcontract Management implementation.

### JD Edwards EnterpriseOne Subcontract Management Overview

You use the JD Edwards EnterpriseOne Subcontract Management system from Oracle to manage the day-to-day and long-term details of contracts, payments, and commitments that are associated with jobs. In addition, you can perform any of the following tasks with the JD Edwards EnterpriseOne Subcontract Management system:

- Create and maintain contracts for the subcontractors on the jobs.

- Establish payment guidelines and make payments against the contracts.

- Track the costs you have paid against a job and the costs you are committed to in the future.

- Make up-to-the-minute inquiries on contract information.

- Input change orders for contract commitments.

- Generate status reports for contracts and commitments.

- Create base agreements for contracts.

When you create a new contract, you enter subcontractor information, the work to be done, contract commitments, dates, log items, and so on. After you enter a contract, you can change the base agreement details, enter commitment change orders, and track the completion of submittals and transmittals.

You can then enter and release progress payments, or hold progress payments. Progress payments are payments that you make to the subcontractors as they make progress against their jobs.

The JD Edwards EnterpriseOne Subcontract Management system has many features to help you manage contracts. The system helps you to manage contacts, commitments, and to process payments.

Contracts

You create contracts for the subcontractors on jobs. Contracts specify details such as the contractor information, work to be done, contract commitments, dates, log items, such as submittals and transmittals, and so on. A submittal is information a subcontractor must provide to you. A transmittal is information you must provide to a subcontractor. The JD Edwards EnterpriseOne Subcontract Management system offers you these features to make the work with contracts as efficient as possible:

Contract Features | Description
Multiple contract types | You can manage a variety of contract types, including: Construction contracts Maintenance contracts Professional service contracts Fabrication contracts Encumbered cost contracts
Base agreement processing | You can create base agreements. A base agreement enables you to set up various jobs so that you do not have to specify distribution commitments for each job individually. This will help you manage contracts in which you have various categories of jobs, but with jobs in each category having identical costs.
Contract reporting | You can process a variety of reports regarding contracts. These reports can indicate: Payment status information by supplier, job, or contract. Log information. Unit price information. Committed cost information, integrating data from the JD Edwards EnterpriseOne Job Cost and JD Edwards EnterpriseOne Subcontract Management systems.
Change order updating | Change orders direct the system to change the amount of money committed to a contract. You can create and update change orders easily. Change orders can stand alone or be rolled into the original contract for payment.
Supplemental data tracking | Many contracts require supplemental information in addition to the basic contract information. This information can be in the form of submittals, transmittals, and other user-defined log types. The JD Edwards EnterpriseOne Subcontract Management system provides these capabilities for managing supplemental data: You can track the completion and receipt of submittals and transmittals. You can report on deficient submittal information that is associated with a contract commitment. You can automatically update submittal status and transmittal status You can withhold progress payments against a contract on the basis of expired logs. In addition, you can enter extended textual information regarding supplemental data and run reports about various log entries. You can also set up a model log entry for each contract type on the system, and then copy and revise those models in the actual contracts.
Contract inquiries | You can review this contract information: Up-to-the-minute payment status details by amount, units, or unit cost. Online log status details and update. Open order details on remaining commitments. Online budget comparisons. Contract searches.

Commitments

A commitment is the money that you designate to pay against a contract. The JD Edwards EnterpriseOne Subcontract Management system provides you with these features to make the work with contract commitments as efficient as possible:

Commitment Feature | Description
Automatic audit trails | You can maintain an audit trail for committed costs. You can access JD Edwards EnterpriseOne Accounts Payable and JD Edwards EnterpriseOne General Accounting systems for an audit trail of progress payments.
User-defined commitment distribution rules | You can set up the system for these commitment distribution purposes: To distribute commitments among multiple jobs within a contract. To establish user-defined cost types per contract type. To establish multiple account distributions per contract type. To track change order.
Tax capabilities | You can assess a number of taxes on progress payments, including: Sales Use Value added The JD Edwards EnterpriseOne Subcontract Management system also creates journal entries for the JD Edwards EnterpriseOne General Accounting and JD Edwards EnterpriseOne Job Cost systems and updates tax files.

Payment Processing

You process payments against the contracts as the subcontractors make progress against their jobs. Payments are charged against the committed money for a contract. The JD Edwards EnterpriseOne Subcontract Management system offers many features you can use to process progress payments, including:

Payment Processing Feature | Description
Flexible pricing methods for commitments. | You can use these pricing methods for the contract commitments: Lump sum, where the contract price is fixed. Unit price, where the contract price is based on the number of units completed.
Payment options. | You can use these options when you process the progress payments: Joint payment handling and alternate payees. Partial payments. Multiple concurrent payment runs. Payment release by due date, payment status, or job. Processing of back charges and extras in addition to the committed amount
Efficient progress payments. | The JD Edwards EnterpriseOne Subcontract Management system helps you manage the progress payments by: Issuing a warning if there are log requirements that have not been met when you try to enter a progress payment voucher. Providing quick access to log status information. Processing retainage amounts as percentage or flat rates. Handling retainage and discount information on the same pay request. Performing both partial and full retainage releases. Providing an American Institute of Architects payment document that you can print and use for future progress payments.

### JD Edwards EnterpriseOne Subcontract Management Integrations

The JD Edwards EnterpriseOne Subcontract Management system integrates with these JD Edwards EnterpriseOne systems from Oracle:

- JD Edwards EnterpriseOne Job Cost

- JD Edwards EnterpriseOne Change Management

- JD Edwards EnterpriseOne Work Orders

- JD Edwards EnterpriseOne Procurement

- JD Edwards EnterpriseOne Accounts Payable

- JD Edwards EnterpriseOne General Accounting

- JD Edwards EnterpriseOne Address Book

JD Edwards EnterpriseOne Job Cost

The JD Edwards EnterpriseOne Subcontract Management system automatically updates committed units and amounts to accounts in the JD Edwards EnterpriseOne Job Cost system. You can manage the contract budgets and cost projections through the JD Edwards EnterpriseOne Job Cost system.

JD Edwards EnterpriseOne Change Management

You can access the JD Edwards EnterpriseOne Change Management system to review the details of a change request that is associated with a contract. You can also transfer the details of a change request to the JD Edwards EnterpriseOne Subcontract Management system. The contract number provides the link between a contract and its associated change requests.

JD Edwards EnterpriseOne Work Orders

You can link line item commitments on the Subcontract Entry form to a work order in the JD Edwards EnterpriseOne Work Orders system. Costs from the line item are automatically charged against the work order in the JD Edwards EnterpriseOne Job Cost system, the JD Edwards EnterpriseOne Subcontract Management system, and the JD Edwards EnterpriseOne General Accounting system.

JD Edwards EnterpriseOne Procurement

The JD Edwards EnterpriseOne Subcontract Management system shares a common database with the JD Edwards EnterpriseOne Procurement system. You can use these links to view the purchase orders and contract commitments that are related to a project from one inquiry form and through the same commitment ledger. Both systems also release commitments in the same manner through the JD Edwards EnterpriseOne Accounts Payable system.

JD Edwards EnterpriseOne Accounts Payable

The JD Edwards EnterpriseOne Accounts Payable system automatically updates the appropriate accounts payable records when you enter progress payments, release retainage, or make payments against a contract. Retainage is a percentage of the contract amount that is held until a specified date after the completion of the work. You can also complete other accounts payable tasks from the JD Edwards EnterpriseOne Subcontract Management system, such as designating joint or alternate payees.

JD Edwards EnterpriseOne General Accounting

The JD Edwards EnterpriseOne Subcontract Management system automatically updates the general ledger in the JD Edwards EnterpriseOne General Accounting system when you create payment vouchers for contracts. All audit trails for JD Edwards EnterpriseOne Subcontract Management vouchers and payments are maintained in the general accounting ledgers.

JD Edwards EnterpriseOne Address Book

The JD Edwards EnterpriseOne Subcontract Management system accesses the JD Edwards EnterpriseOne Address Book system for the addresses of suppliers, subcontractors, and business owners. You can use this information to print payments, reports, and so on. You can access JD Edwards EnterpriseOne Address Book from a JD Edwards EnterpriseOne Subcontract Management inquiry form to find specific subcontractors.

### JD Edwards EnterpriseOne Subcontract Management Implementation

This section provides an overview of the steps that are required to implement the JD Edwards EnterpriseOne Subcontract Management system.

In the planning phase of the implementation, take advantage of all sources of information, including the installation guides and troubleshooting information. A complete list of these resources appears in the preface in About This Documentation with information where to find the most current version of each.

When determining which electronic software updates (ESUs) to install for JD Edwards EnterpriseOne Subcontract Management, use the EnterpriseOne and World Change Assistant. EnterpriseOne and World Change Assistant, a Java-based tool, reduces the time required to search and download ESUs by 75 percent or more and enables you to install multiple ESUs at one time.

See JD Edwards EnterpriseOne Tools 8.98 Software Update Guide

For information about the Oracle Business Accelerator solution for implementation of JD Edwards EnterpriseOne Subcontract Management, review the documentation available.

See http://www.peoplesoft.com/corp/en/iou/implement/rapid_start/rapid_start_prtr_notes.jsp

#### Global Implementation Steps

This table lists the global implementation steps for JD Edwards EnterpriseOne Subcontract Management:

Step | Reference
1. Set up global user-defined codes (UDCs). | See JD Edwards EnterpriseOne Tools 8.98 System Administration Guide, “Working with User Defined Codes”
2. Set up fiscal date patterns, companies, and business units. | See Setting Up Organizations.
3. Set up next numbers. | See Setting Up Next Numbers.
4. Set up accounts. | See Creating the Chart of Accounts.
5. Set up General Accounting constants. | See Setting Up Constants for General Accounting.
6. Set up multicurrency processing, including currency codes and exchange rates. | See Setting Up General Accounting for Multicurrency Processing.
7. Set up ledger type rules. | See Setting Up Ledger Types for General Accounting.
8. Enter address book records. | See Entering Address Book Records.
9. Set up default location and printers. | See JD Edwards EnterpriseOne Tools 8.98 Development Tools: Report Printing Administration Technologies Guide, “Working with Report Printing Administration”
10. Set up branch/plant constants. | See Defining Branch/Plant Constants.
11. Set up manufacturing and distribution AAIs. | See Setting Up AAIs in Distribution Systems.
12. Set up document types. | See Setting Up Document Type Information.
13. Set up shop floor calendars. | See Understanding Shop Floor Calendar Setup.

#### JD Edwards EnterpriseOne Subcontract Management Implementation Steps

This table lists the application-specific implementation steps for the JD Edwards EnterpriseOne Subcontract Management system:

Step | Reference
1. Set up the procurement system, projects or jobs, and commitments. | See Setting Up Subcontract Management.
2. Set up suppliers. | See Setting Up Suppliers.