Managing Receivables

Receivables, also referred to as accounts receivable, are debts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for. Receivables can be managed from the same window.

To create a receivable

In the Cost Management window, click the tab Commitments/Receivables.
Select the Category as Receivable.

Figure: Creating a receivable

In the tool bar click Receivable and in the menu click Create.

Receivable Details window is displayed. In the Receivable Details window, Cost information is arranged under two different sections, Budget Details and Receivable Details.

Figure: Receivable Details window

In the Budget Details window enter values for the following fields. Additional information can be viewed by expanding the section Additional Budget Details.

#	Item	Description
1	COST CODE	Click the browse button to select a Cost Code. On clicking the browse button, all the codes assigned in the project will be listed in the Cost Code window. Select a code from the list.
2	CATEGORY	Category is displayed as Receivable.
3	LINE ITEM NO	Click the browse button to select a Line Item Number. Line Items filtered based on Cost Code is displayed here. Select a Line Item.
4	LINE ITEM DESCRIPTION	Based on the Line Item selected, value for this field is filled in. This property is displayed under the section Additional Budget Details.
5	BUDGET QUANTITY	Quantity in the budget line item is displayed. This field is non-editable. Based on the Line Item selected, value for this field is filled in. This property is displayed under the section Additional Budget Details.
6	BUDGET RATE	Rate defined for the budget line item is displayed here. This field is non-editable. Based on the Line Item selected, value for this field is filled in. This property is displayed under the section Additional Budget Details.
7	BUDGET TOTAL	Total amount of Budget Line Items is displayed here. This field is non-editable. Based on the Line Item selected, value for this field is filled in. This property is displayed under the section Additional Budget Details.

In the Receivable Details section enter values for the following fields. Additional details can be viewed by expanding the section Additional Receivable Information.

#	Item	Description
1	REFERENCE NUMBER	The value for this field is generated automatically.
2	TYPE	Select a value from the drop-down list. In the list types available are PO and Sub Contracts. By default the value displayed is PO.
3	RECEIVED FROM	Click the browse button to select the origin of the receivable. Origin window is displayed. On selecting an origin list of vendors is displayed. Select the vendor from the list.
4	CHANGE ORDER	A receivable may be created newly or based on an Approved Receivable change order. To create a receivable from a change order Click the ellipse button. Search Change Order window is displayed. All the Approved Change Orders filtered by Project and the selected Line item will be displayed. Select an approved change order based on which a receivable is to be created.
5	RECEIVABLE DESCRIPTION	Enter a description for the receivable
6	PO NUMBER	Enter the PO Number of the receivable.
7	PAYMENT DAYS	Enter the number of days after which a payment will be released after the approval/certification. This is a mandatory field.
8	QUANTITY	Enter a value for the quantity of receivable created. Quantity in the receivable may be greater or lesser than the quantity specified in the Budget Line Item. This is because the receivables quantity is the actual quantity. This will have no impact on the Budget Line Item but will have impact only on the actuals (profitability of the Project).
9	RATE	Rate of the Quantity of the Receivable. By default this value will be the value provided in the Budget Rate and user may modify this value
10	CURRENCY	The PO/ sub contracts may be in a currency different form that of base currency (Project currency), in such case the receivables are created in the currency on which the PO/ Sub Contracts are issued. Select a currency from a drop-down list.
11	CONVERSION RATE	Enter a conversion rate for the currency. This property is displayed only when the section Additional Receivable Details is expanded.
12	CONVERSION DATE	Current date is displayed here. This can be modified. This property is displayed only when the section Additional Receivable Details is expanded.
13	PR VALUE	PR value specified in the budget line item against which the receivable is created is displayed here. This value will be displayed only when the budget line item is selected. If no such value exist user may type in a value. This property is displayed only when the section Additional Receivable Details is expanded.
14	PR NUMBER	PR also has a unique number generated in format followed by organizations. This unique number is used to identify the PR. Type in a value. This field is editable, and user may modify this value if required. This property is displayed only when the section Additional Receivable Details is expanded.
15	CREATED BY	Name of the user (logged in user) who created the receivable cost is displayed here. This property is displayed only when the section Additional Receivable Details is expanded.
16	CREATED ON	Current date is displayed here. The date can be modified by the user. Date greater than current date is not permitted here. This property is displayed only when the section Additional Receivable Details is expanded.
17	TOTAL AMOUNT	Total amount in project currency is displayed here. The value can be modified. Currency is also displayed alongside with the currency. This property is displayed only when the section Additional Receivable Details is expanded.
18	AMOUNT (BASE CURRENCY)	Here product of total amount and conversion rate is displayed. This field is not editable. This property is displayed only when the section Additional Receivable Details is expanded.

After entering the values click Save.
Receivable created successfully message is displayed. Click OK to continue.

Created receivable is displayed under the Commitments/Receivables tab.

Updating Receivables

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

To edit a receivable

Select a receivable and in the menu click Update.

Figure: Editing receivable details

Receivable Details window with entered values is displayed.

Edit the values and click Save.

The updated value will be reflected in the Commitments/Receivables, Summary and Budget tab.

NOTE: Receivables do not have statuses, therefore those users having Edit commitment/receivable permission can Edit the receivable any time.

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. Facility to define Payment Schedule is available. Payment Schedule can be defined from the Receivables menu

To define payment schedule

In the Receivables tab select the receivable for which you want to define payment Schedule.
In the menu click Payment Schedule.

Payments Schedule window is displayed. If there any payment terms created, they are displayed here.

In the tool bar click New.

Figure: Creating Payment Schedule

In the menu displayed click Payment Schedule.

Payment Schedule Details window is displayed.

Figure: Payment Details window

Properties displayed in the window is explained in the following table. Enter values for properties, wherever it is required.

#	Property	Description
1	PO NUMBER	PO Number available in the selected receivable is displayed here. This field is non-editable.
2	CATEGORY	Here category is displayed as Receivable.
3	PAYMENT SCHEDULE DESCRIPTION	Enter a description for the payment schedule.
4	PAYMENT SCHEDULE %	Enter a value. The maximum value permitted is 100. If sum of the percentage value exceeds 100% a warning message is displayed.
5	PAYMENT DAYS	Payment days available in the receivable is displayed here. This field is non-editable.
6	SCHEDULE CODE	Click the browse button to select a Schedule Code. Search Task window is displayed. All the tasks having schedule codes available in the rules will be displayed. Select a task.
7	TASK CODE	Click the browse button to select a Task Code. Search Task window is displayed. All the tasks with task codes are displayed. Select a task from the list.
8	TOTAL AMOUNT	Total Amount is displayed here. The value displayed here cannot be edited.
9	VOWD %	Specify the VOWD% or conversion factor.

After entering values for the properties mentioned in the previous table, enter certification details. Certification denotes that an activity is completed, and payment may be released. But the payments release is based on the payment days stipulated on which the payment will be made.

Enter Certification Information Values which is explained in the following table.

#	Property	Description
1	PLAN START	Enter the plan start date and time.
2	PLAN FINISH	Enter the plan finish date and time.
3	FORECAST START	Enter the forecast start date and time.
4	FORECAST FINISH	Enter the forecast finish date and time. Fetch Plan and Forecast dates: Plan and Forecast dates can also be fetched. On clicking the option ‘Fetch Plan and forecast date’, then depending on the Task code or Schedule code assigned to the payment schedule, the Planned start, planned finish, forecast start and forecast finish dates will be fetched to the corresponding planned start, planned finish, forecast start and forecast finish date of the payment terms. If Schedule codes are assigned against the Rules of a Rule set assigned to the tasks and value is provided in Schedule code, then dates will be fetched from the rules instead of the schedules. However, for a rule with no finish dates, only planned and forecast finish date will be fetched and the Planned and forecast start date will remain blank. If user has selected a rule and a task in the fields Schedule code and task code respectively, and then click on ‘Fetch plan and forecast date’, then system fetches the dates from rules instead of task schedule and update the plan and forecast dates of the payment term. This is because, the dates in rules are the further break down of the dates provided in the schedules, hence rule date may be more appropriate.
5	PLAN AMOUNT	Enter the plan amount.
6	FORECAST AMOUNT	Enter the forecast amount.
7	ACTUAL CERTIFICATION	Actual certification date is the date on which the payment terms is completed. Enter actual certification date. This value may also be fetched from the task based on the task code assigned to the Payment term or the schedule code. On clicking the button Fetch Actual, the actual finish date from the task will be fetched and the date will be updated against the ‘Actual Certification date’.
8	ACTUAL AMOUNT	Enter the actual amount.
9	VOWD AMOUNT	This is a system calculated value.

Spent Information: Certification details of a payment schedule do not imply that the actual payment is done. The actual payment will be done after the days mentioned in the payment days.

Enter certification information values, which is explained in the following table.

#	Property	Description
1	PLAN	Plan Finish Date is displayed here. If any payment days is defined in the commitment, this will be added to the Plan Finish Date.
2	FORECAST	Forecast Finish Date is displayed here. If any payment days is defined in the commitment, this will be added to the Forecast Finish Date.
3	ACTUAL	Actual Finish Date is displayed here. If any payment days is defined in the commitment, this will be added to the Actual Finish Date.
4	AMOUNT	Enter the amount.

After entering the values click Save.
Payment Schedule created successfully message is displayed. Click OK to continue.

Created Payment Schedule is displayed in the Payment Schedule window.

Distributing Payment Schedules

Payment schedule created for the receivable may be distributed across a specified time period.

To distribute payment Schedules

Select a single payment schedule.
In the tool bar click Distribute.

Figure: Distributing payment schedule

Payment Schedule Distribution window is displayed.

Figure: Distribute Payment Schedule window

Elements in the window is explained in the following sections.

Details regarding the payment schedule can be entered in PAYMENT SCHEDULE DETAILS section, they are explained in the following table.

#	Property	Description
1	PAYMENT SCHEDULE DESCRIPTION	Payment schedule description is displayed here.
2	PAYMENT SCHEDULE AMOUNT	Payment schedule amount is displayed here.
3	CURRENCY	Currency is displayed here.

Distribution dates can be entered under the section DISTRIBUTION SCHEDULE, they are explained in the following table.

#	Property	Description
1	FROM DATE	Enter the starting date of the payment schedule.
2	TO DATE	Enter the starting date of the payment schedule.
3	DISTRIBUTION INTERVAL	Select the interval to be used for constructing the payment schedule. Options available are Weekly and Monthly. Since most organizations process payments monthly, default values is Monthly.
4	DISTRIBUTION PERIOD ENDS ON	A time frame for ending the distribution period can be defined. The following options are available. If the interval selected is Weekly the following option is displayed. Week day, each week: Select this option to specify a week day such that each row in the ‘payment schedule’ will end on the specified week day. A day can be selected from a drop-down list. If the interval selected is Monthly the following options are displayed. Specific Date, each month: Select this option to specify a specific date, such that each row in the ‘payment schedule’ will end on the specified date of each month. End of each month: Select this option to specify the month-end such that each row in the ‘payment schedule’ will end on the last day of each month.

Distribution parameters can be defined in the section DISTRIBUTION OF AMOUNT, they are explained in the following table.

#	Property	Description
1	Distribution Mode	Distribution types available are Manual and Automatic. By default radio button next to Manual is selected.
2	Loading Type	Select a loading type from a drop-down list. Values available are: Linear: (Alpha =1 , Beta = 1) Front Loaded: (Alpha = 1, Beta = 5) Back Loaded: (Alpha = 5, Beta = 1) Based on the selected loading type, Alpha and Beta values will be automatically selected. The values can be modified and should be always greater than one.
3	Distribution Type	This option is displayed only when distribution mode selected is Automatic. The following settings are available. Plan Amount: Select this option to distribute plan amount automatically. Forecast Amount: Select this option to distribute forecast amount automatically

After entering the values click Distribute. Payment Term is distributed based on the settings provided. A message Distributed successfully. Please save the distributed details is displayed.
Click OK to continue.

A sample distribution is displayed in the following figure.

Figure: Distribution Details

Depending on the Distribution Dates, PLAN DATE and PLANNED AMOUNT or FORECAST DATE and FORECAST AMOUNT is displayed.

Click Save to save the distribution.

Distributing payment schedules manually

In some cases payment terms are distributed manually.

To distribute payment schedules manually

In the Payment Schedule distribution window select the radio button next to Manual.
Select a Distribution Interval from a drop-down list. Options available are Monthly and Weekly.
Define the period in which the distribution ends. Options available are This day each month/week, This date each month and Month End.
After selecting the options click Distribute. Distribution table is created. Enter the PLAN amount manually.
Click Save to save the payment schedule distribution

Figure: Distributing Manually

Managing Invoices

It is desired to register the invoices created against a receivable. This information may be used for cost analysis such as ‘Total receivable’ vs ‘Invoiced ‘and ‘Invoiced’ vs ‘Payment Receipt’.

Generating Invoices

Vendors submit invoices for payments. Normally the invoices are raised based on the payment terms specified in the PO. Invoice can be registered from the Receivables window.

To register an invoice

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

Importing, Exporting and Updating Receivables

Receivables 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 Import/Export.

Figure: Import/Export operations

To generate an import template

To import receivable details

Exporting receivable details

Receivable 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 receivable details

To update receivable details

#	Item	Description
1	Category	Here category of the invoice is displayed. For receivables the category displayed is Receivables.
2	Invoice Number	Enter an invoice number.
3	Invoice Description	Enter invoice description.
4	Cost Code	Cost Code assigned to the selected receivable is displayed. This field is non-editable.
5	Line Item Number	Line Item number based on the Cost Code assigned to the selected receivable is displayed here. This field is non-editable.
6	Line Item Description	Line Item Description based on the Cost Code assigned to the selected receivable is displayed here. This field is non-editable.
7	Reference PO	Value is displayed automatically based on the receivable selected. This field is non-editable.
8	Payment Schedule Description	List of payment schedules created in the given receivable, 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	Invoice Amount	Enter the invoice amount.
12	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 receivable 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.