(GBR) Setting Up ACM

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

Set up ACM constants.
Set up order activity rules for ACM.

Understanding ACM Status Codes

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.

Use Application and Certificate management (ACM) within the procure-to-pay system to manage applications and certificates.

When you enter a subcontractor's application for payment, the system creates a record in the F74U0141 table and assigns a blank ACM status to the record. As the record progresses through the ACM process, the system updates the ACM status of the record in the F74U0141 table.

This table describes the ACM status flow for application and certificate entry:

Status Code	Status Description	Event Causing Status Change
(blank)	Application Entered	Application entered.
S	Application Superceded	A new application is entered that replaces an uncertified application. This step is optional.
N	Pre-Certificate Printed	Pre-Certificate Document (R74U0150) run.
C	Certificate Entered	Certificate information entered.

This table describes the ACM status flow for non-evaluated receipts:

Status Code	Status Description	Event Causing Status Change
I	Non-Evaluated Certificate Print	ACM Certificate Print (R74U0152) run for non-evaluated receipts.
V	Voucher Created	Voucher matched to open receipt.
P	Payment	Payment generated.

This table describes the ACM status flow for evaluated receipts:

Status Code	Status Description	Event Causing Status Change
V	Voucher Created	Evaluated Receipt Settlement (R43800) run.
P	Payment	Payment generated.
F	Evaluated Certificate Print	ACM Certificate Print (R74U0152) run for evaluated receipts.

This table describes the ACM reverse status flow:

Status Code	Status Description	Event Causing Status Change
P	Payment	(blank)
V	Voucher Created	Payment voided.
C	Certificate Entered	Voucher reversed.
R	Reverse Receipt	Receipts reversed using Purchase Receipts Inquiry (P43214), version ZJDE7002.
(blank)	Application Entered	Certificate reversed.

Setting Up ACM Constants

This section provides an overview of ACM constants setup, lists prerequisites, and discusses how to set up ACM constants.

Understanding ACM Constants Setup

You set up ACM constants to activate ACM processing, to set up default statuses for ACM processing, and to set up constants for business unit category codes.

You use business unit category codes to indicate whether purchase orders that are entered for a specific business unit are eligible for partial payment (measured progress), require applications for payment (application required), and are eligible to be certified for more than the application amount (over-certification). For each category (Measured Progress, Application Required, and Over Certification Allowed), you specify the business unit category code that holds the constant for that category at the default value of the constant. For example, if you want to apply Measured Progress to all business units that have a Y in category code 16, you would specify category code 16 for Measured Progress and Y as the default value.

Prerequisites

Before you set up ACM constants, you must set up UDC 74U/AS to specify ACM status codes. Also, set up Business Unit category codes (00/01-20) to identify the jobs or business units that:

Are eligible for measured progress.
Require ACM applications.
Are eligible for over-certification.

Form Used to Set Up ACM Constants

Form Name	FormID	Navigation	Usage
Application Certificate Company Constants	W74U0140A	System Setup (G74U0140), ACM Constants	Set up ACM constants.

Setting Up ACM Constants

Access the Application Certificate Company Constants form.

ACM System

Select the ACM System tab.

Application Certificate Active?	Select this option to enable ACM processing.
A/P Voucher Generated (accounts payable voucher generated)	Enter a value from the ACM Status (74U/AS) UDC that indicates that an A/P voucher has been generated for a certificate.
Reverse Receipt	Enter a value from the ACM Status (74U/AS) UDC that indicates that the receipt has been reversed for a certificate.
Certificate Entered	Enter a value from the ACM Status (74U/AS) UDC that indicates that a certificate has been entered for an ACM record.
Payment Generated	Enter a value from the ACM Status (74U/AS) UDC that indicates that payment has been generated for a certificate.

Measured Progress

Select the Measured Progress tab.

M/P Category Code (measured progress category code)

Select the option that corresponds to the business unit category code that you use to indicate whether jobs, business units, or purchase orders are eligible for measured progress in ACM processing. When a job or business unit is eligible for measured progress, the subcontractor can apply for partial payment when the job is partially completed. This option is used in conjunction with the Default Measured Progress Code field.

Default Measured Progress Code

Enter a value from the Division (00/01) UDC to identify jobs or business units that are eligible for measured progress (partial payment) in ACM processing. The category code value corresponds to the M/P Category Code that you select. For example, if you select M/P Category Code 16 and enter a default value of Y, the system identifies all business units with a value of Y in Category Code 16 as being eligible for measured progress.

Application Required

Select the Application Required tab.

A/R Category Code (accounts receivable category code)

Select the option that corresponds to the business unit category code that you use to indicate whether jobs, business units, or purchase orders that are entered for the business unit require applications for partial payment. When a job or business unit requires an application, the subcontractor must submit an application stating the portion of the job that has been completed in order to be paid. This option is used in conjunction with the Default Application Required Code field.

Default Application Required Code

Enter a value from the Division (00/01) UDC to identify jobs or business units that require an application in ACM processing. The category code value corresponds to the A/R Category Code that you select. For example, if you select A/R Category Code 17 and enter a default value of Y, the system identifies all business units with a value of Y in Category Code 17 as requiring applications.

Over Certification Allowed

Select the Over Certification Allowed tab.

O/C Category Code (over certification category code)

Select the option that corresponds to the business unit category code that you use to identify jobs or business units that are eligible for over-certification. Purchase orders entered for business units with a specific value in this category code can be certified for more than the application amount. This option is used in conjunction with the Default Over Certification Code field.

Default Over Certification Code

Enter a value from the Division (00/01) UDC to identify jobs or business units that are eligible for over certification in ACM processing. The category code value corresponds to the O/C Category Code that you select. For example, if you select O/C Category Code 18 and enter a default value of Y, the system identifies all business units with a value of Y in Category Code 18 as being eligible for over certification.

Setting Up Order Activity Rules for ACM

For ACM processing, you must distinguish construction purchase orders from other documents and set up specific order activity rules for those purchase orders. For these actions, you must create a special document type in UDC 00/DT for construction purchase orders. You must also set up the line type for nonstock items with a value of A in the Inventory Interface (IVI) field so that the system stores the GL account number for construction industry scheme (CIS) processing.

You set up order activity rules for the special document type and nonstock line type to include the application/certificate status (381). You do not need to include a receipt status because the system generates receipts automatically when you add certificate information.

You should set up order activity rules as shown in this table:

Order Type	Line Type	Last Status	Description	Next Status	Other 1	Ledger (Y/N)
OC	N	220	Enter Purchase Order	280	na	N
OC	N	280	Print Purchase Order	381	na	N
OC	N	381	Application / Certificate	999	381	N
OC	N	999	Complete - Ready to Purge	na	na	N