Commitments/Receivables
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Commitments may represent material orders or subcontracts for which firm amounts (in currency) have been committed by an organization to another. Typically, Commitments are registered in the system using purchase orders.

Commitment management is one of the key aspect in Project management, particularly in the case of managing sub-contractors. The terms and conditions of the work or activity are always mentioned in the commitment, based on which the supply / service is governed. Project cash out flow is to be made in consideration with the commitments the projects makes with the subcontractors or vendors. Changes against a commitment are recorded by Change orders which also form a key aspect in Commitment management. 

Viewing commitment details

Commitments details are displayed in Commitment tab in the Cost module. The cumulative amount of commitments against each leaf level cost code and the amounts correspondingly rolled up to the parent levels are displayed here – in the original order in which they are created.

To view commitment details


Creating Commitments

Commitments are created from the commitment window.

To create a commitment

Updating commitments

Commitment values can be edited. Editing is entirely different from change request operation.

To edit a commitment

Importing, exporting and updating commitments

Commitment Summary can be created in an Excel template generated from the system and the details can be imported to the system. These options are available in the menu displayed on clicking Commitment Import/Export.

Figure: Import/Export operations

To generate an import template

To import commitment details

Exporting commitment details

Commitment details can be exported to an MS Excel sheet, values can be edited and the new values can be updated to the system.

To export commitment details

To update commitment details

Commitment Details

Entire commitment details and commitment operations will be available in the Cost View window on clicking the option Commitment Details from the Commitment menu.

Figure: Cost View window

In the window all the options explained in the previous sections will be available.

Defining payment schedule

The amount specified against each PO is not spent at once; but paid as per the “payment schedule specified in the PO. For a commitment, the cash outflow is normally available in the contract, which is known as “Payment Schedule." Facility to define Payment Schedule is available. Payment Schedule can be defined from the Commitments menu or by clicking the Payment Schedule hyperlink in the Commitment Details window in the edit mode.

To define payment schedule

Distributing Payment Schedules

Payment terms created for the commitment may be distributed across a specified time period. 

To distribute payment Schedules

Distributing payment schedules manually

In some cases payment terms are distributed manually.

To distribute payment schedules manually

Distributing payment schedule in bulk

For importing payment schedules in bulk, MS Excel template is used as the import medium. An excel template is generated, values are entered in the template and the details in the file is imported.

To generate a template

To  import a template


To view log of bulk distribution


Importing, exporting and updating payment schedules

Payment Schedules can be imported in bulk using an MS Excel template. Options to generate an import template and import the template is available.

To generate an import template

To import payment schedule

To view operations log

To export payment schedules

To update payment schedule

Managing Invoices

Vendors submit invoices for payments. The organizations must pay money for the Commitments they made with the vendors. Normally the invoices are raised based on the payment terms specified in the PO. Invoice can be registered from the commitment window.

To register an invoice

  1. In the Cost Management click Commitments/Receivables tab.
  2. Select a payment term from the commitment window.
  3. In the tool bar click Invoice Details and, in the menu, displayed click Register Invoice.

Figure: Registering Invoice

Register Invoice window is displayed. 

Figure: Register Invoice window

The window will have two tabs, Details and Attachments. By default, the tab Details will be selected. Enter values for the fields mentioned in the following table.

#

Item

Description

1

Category

Here category of the invoice is displayed. For commitments the category displayed is Payments.

2

Invoice Number

Enter an invoice number.

3

Invoice Description

Enter invoice description.

4

Cost Code

Cost Code assigned to the selected Commitment or PO is displayed. This field is non-editable.

5

Line Item Number

Line Item number based on the Cost Code assigned to the selected Commitment/PO is displayed here. This field is non-editable.

6

Line Item Description

Line Item Description based on the Cost Code assigned to the selected Commitment/PO is displayed here. This field is non-editable.

7

Reference PO

Value is displayed automatically based on the Commitment or PO selected. This field is non-editable.

8

Payment Schedule Description

List of payment schedules created in the given PO, will be listed in the drop-down.

9

Payment status

Select a payment status from a drop-down list. Values available are:

  • Fully Paid
  • Partially Paid
  • Not Paid

In default the value “Not Paid” will be selected. 

Once payment status change to ‘Fully Paid’ invoice amount is filled automatically to paid amount.

10

Expected Payment Date

Enter a date. 

11

Vendor Details

Vendor defined in the commitment will be automatically filled. This field is non-editable.

12

Invoice Amount

Enter the invoice amount.

13

Paid amount

Enter the amount paid.

Once payment status change to ‘Paid’ invoice amount is filled automatically to paid amount. User can change the amount if needed.

14

Currency

Currency specified in the selected Commitment will be displayed.

15

Conversion Rate

Enter a conversion rate.

16

Invoice amount (Project Currency)

Calculated automatically based on the Conversion Rate. This field is non-editable.

17

Paid Amount (Project Currency)

Calculated automatically based on the Conversion Rate. This field is non-editable.

Attachments can be added to the invoice. 

To add attachments

Invoice Details

List of generated invoices will be listed under Invoice Details.

To open invoice details

To update invoice details

To remove invoices

Importing Invoices in bulk

Invoices can be imported in bulk using a MS Excel template. An MS Excel template is generated, invoice details are entered in the template and saved, and the details are imported.

To generate a template

To import invoice details