inforln.com erp ln 10.3 & 10.4 contract invoicing differences
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Infor LN: v10.3 - v10.4 Contract Invoicing Differences
Rollout trainingCampus Course Code: 02_0021040_EEN0476_ELN
August 2014
Henk Otjens
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Topics• Advance Payment Request vs. Advance Invoice
• Fees and Penalties
• Billable Overhead extended
• DoD Billing formats
• SF 1443
• SF 1034/1035
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Advance Payment Request vs. Advance Invoice: Why?• In some countries / environments the status of an advance differs
• It is required to differentiate between an Advance Payment Request and an Advance Invoice
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Advance Payment Request vs. Advance Invoice: How?• We allow to differentiate Advance Payment Request vs. Advance Invoice
• Both options result in an open entry
• However, the advance invoice is a legal document and will have an official invoice number assigned and be included in the Sales Listing and the advance payment request will not.
• Tax is only on Advance Invoice, not on Advance Request
• Advance Payment Type is set on Contract Line (based on Contract Parameter)Parameter allows to fix type or allow choice on contract:
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Fees and Penalties: Why?• Fees and Penalties are an important feature of Contract Management
amongst other in certain US Government specific contract types
• The LN Project application lacked explicit support
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Fees and Penalties: How?• The LN Project 10.4 application supports fees
• Fee types:
• Fixed Fee
• Award Fee
• Incentive Fee
• Penalty
• Invoiced amount can differ from Fee amount defined
• Triggering is manual but the fees and penalties can be linked to activity or milestone
• Multiple fee types and fees are possible for one contract line
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Solution Overview• Explicit option for Fees and Penalties as part of invoicing process
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Fees and Penalties
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Billable Overhead• LN didn’t differentiate between internal and external rates while invoicing
overhead
• LN 10.4 differentiates between Internal (applied) and External (billing) Overhead Rate
• We exclude non-billable transactions while calculating billable overhead
• Informational option for billing rate whether it is Provisional or Final
• Introduce new status option on overhead base: Expired
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Overhead Application Base
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DoD Billing Formats• We cater for some US Government specific formats:
• SF 1443
• SF 1034 / 1035
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Progress Payment Billing: Why?• An Invoice Format specific for US: SF1443
• The Progress Payment Request allows to charge the customer based on the costs so far while installment or delivery cannot be invoiced. This invoicing is in order to improve the cash flow of the contractor.
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Standard Form 1443• Contractor’s Request for Progress
Payment, aka SF1443
• “Progress payments are payments made based on the cost incurred by the contractor/vendor as work progresses under a contract. When authorized in the contract, DFAS can make payments of 80% or more of the accumulated costs on certain items.”
• US Government specific
• Requires Infor Reporting
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Solution Overview• Added option for progress payment requests
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Progress Payment Billing (cont’d)• Progress Payment Request as part of Installment or Delivery based
Contract (only relevant for Fixed Price Contracts)
• New contract parameter and setting on contract line whether to use
• Progress Payment Rate: Maximum percentage of cost to consider for invoicing
• Liquidation Rate: Percentage of progress payment to settle against later invoice
• Billable Cost Report option as annex to invoice to detail cost
• Capture Actual Cost and ETC (business type will impact what costs to take into account)
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Progress Payment Setup on Contract
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Progress Payment Request Details
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Progress Payment Steps• Setup
• Default Revenue Codeas part of General Project Parameters
• Activate as part of Contract Parameters
• Small Business default as part of Contract Parameters
• Procedure
• Settings on Contract / Contract Line
• Billable Cost Details evaluation
• Create Progress Payment Request
• Manually
• Generate
• Invoicing (approve, transfer and invoice)
• Billable Cost Report (optional)
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Standard Forms 1034 and 1035• Why?
• The amount claimed for reimbursement under cost-reimbursement type contracts while working for US Government:
• Public Voucher for Purchases and Services Other Than Personal (SF1034)
• Public Voucher for Purchases and Services Other Than Personal - Continuation Sheet (SF1035)
• Create Invoice having SF 1034 / 1035 Layout
Note: we improved the Infor Reporting variant of the commercial invoice
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SF 1034 / 1035• US Government specific
• Requires Infor Reporting
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• Invoicing Method is to control when to use the commercial (standard) invoice and when to use Standard Forms
• The aggregation settings will drive the level of detail printed
Invoicing Method
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Topics• Advance Payment Request vs. Advance Invoice
• Fees and Penalties
• Billable Overhead extended
• DoD Billing formats
• SF 1443
• SF 1034/1035
![Page 23: Inforln.com ERP LN 10.3 & 10.4 Contract Invoicing Differences](https://reader033.vdocument.in/reader033/viewer/2022042615/55aa2fcb1a28ab456e8b45b3/html5/thumbnails/23.jpg)
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