Commitments/Receivables

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

Adding Attachments

Different reference documents can be added to the commitment.

To add reference documents

On the Commitment Details window select the tab Attachments.

Figure: Adding attachments

Place the mouse pointer over the option Add. The following options are displayed.

Existing Documents: Click this option, If documents created in SmartProject is to be added as attachments.

New Documents: Click this option, if a document is to be created in SmartProject and then added as attachment.

From Disk. Click this option if documents saved locally is to be added as attachment.

NOTE: These options are not explained in detail, assuming users are familiar with Document addition and Document Search operations.

Creating a commitment from BOQ

A commitment can be created from BOQ line items.

To create a commitment from BOQ

On the Create Commitment select the tab Item Details.

Figure: Adding BOQ Items

On the Item Details window click Add to add the BOQ items.
Search BOQ window is displayed. Select the required BOQ line items from the window.
Click OK. Selected BOQ Items are displayed in the grid.
After selecting the BOQ line items, switch back to the Cost Information tab.
Enter values for different properties in the Cost Information tab. This is explained in the preceding section.

NOTE: Since quantity and rate is fetched from the added BOQ line items, in the Commitment Details section the fields QUANTITY and RATE is disabled.

Figure: Creating commitment from BOQ line items

Click the button Fetch from BOQ.

Total amount of the commitment is fetched from the BOQ line items selected and is displayed in the field TOTAL AMOUNT.

Click Save to create the 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

On 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

Click the Commitments/Receivables tab.
Select a payment term from the commitment window.
Place the mouse pointer over the option Invoice Details and, in the menu, displayed click Register Invoice.

Figure: Registering Invoice

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

#	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 Commitment.
	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.
3	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.
4	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.
5	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.
6	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.
7	COMMITMENT TO GO	The remaining amount for which PO for commitment is to be released is displayed here. The value is the difference of Budget amount for the commitment item and the sum of commitment amounts against the line item. 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.
8	PROJECTED TO GO	This value is calculated by the system. Based on the Line Item selected, value for this field is filled in. This property is displayed under the section Additional Budget Details.

#	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	ISSUED TO	Click the browse button to select a Vendor. Vendors window is displayed with a list of vendors. Select a vendor from the list.
4	CHANGE ORDER	A commitment may be created newly or based on an Approved Commitment change order. To create a Commitment from a change order click on 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 commitment is to be created.
5	COMMITMENT DESCRIPTION	Enter a description for the commitment.
6	PO NUMBER	Enter the PO Number of the commitment.
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 commitment created. Quantity in the Commitment may be greater or lesser than the quantity specified in the Budget Line Item. This is because the Commitment 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 Commitment. 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 commitments 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 Commitment Information is expanded.
12	CONVERSION DATE	Current date is displayed here. This can be modified. This property is displayed only when the section Additional Commitment Information is expanded.
13	PR VALUE	PR value specified in the budget line item against which the commitment 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 Commitment Information 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 Commitment Information is expanded.
15	CREATED BY	Name of the user (logged in user) who created the committed cost is displayed here. This property is displayed only when the section Additional Commitment Information 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 Commitment Information 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 Commitment Information 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 Commitment Information is expanded.
19	VARIANCE AMOUNT	This is a system calculated value. This field will remain disabled in ‘Create’ operation and in ‘Edit’ mode. This property is displayed only when the section Additional Commitment Information is expanded.
20	PROJECTED COMMITMENT AMOUNT	It is the sum of total amount and variance amount. This property is displayed only when the section Additional Commitment Information is expanded.

#	Property	Description
1	COMMITMENT NUMBER	The commitment number is generated automatically.
2	PO NUMBER	PO Number available in the selected commitment is displayed here. This field is non-editable.
3	CATEGORY	Here category is displayed as Commitment.
4	PAYMENT SCHEDULE DESCRIPTION	Enter a description for the payment schedule.
5	PAYMENT SCHEDULE %	Enter a value. The maximum value permitted is 100. If sum of the percentage value exceeds 100% a warning message is displayed.
6	PAYMENT DAYS	Payment days available in the commitment is displayed here. This field is non-editable.
7	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.
8	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.
9	TOTAL AMOUNT	Total Amount is displayed here. The value displayed here cannot be edited.
10	VOWD %	Specify the VOWD% or conversion factor.
11	BUDGET LINE ITEM	Click the browse button to specify a budget line item against a payment schedule. On clicking the browse button, Line Item Details window is displayed. Select the line item from the window.
12	COST CODE	If the budget line item is specified against a BOQ line item, then the cost code associated with the budget line item is displayed in the field COST CODE.

#	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.

#	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.

#	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.

#	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