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Considerations

Scenario B: Subcontractor’s time will be entered via the vendor invoice

Assumptions:

  • You are using Unanet Financials.

  • You will not have your subcontractors enter Timesheets and Expense Reports in Unanet (they do not take up a license), but need to capture hours and expense items on the Customer Invoice.

  • Vendor Invoice Persons are not included in planning/forecasting.

  • You are planning to enter subcontractor time and expenses in the Vendor Invoice.

  • You are planning to add Items (i.e., material that requires a quantity, rate, and unit of measure) on the Vendor Invoice.

  • There is no real-time reporting available for these users since the time/expense is entered after the invoice is received.

  • There is no opportunity for utilizing three-way matching.

  • Much of this effort is performed by internal company resources (not your subs) and requires some other method of tracking hours and expense for the subcontractors in order to include them on the vendor invoice. This can potentially increase administrative costs if the time required to complete this process increases.

Workflow:

  • PURCHASER creates Purchase Order.

  • PURCHASING MANAGER approves Purchase Order.

    • When the PO is approved, the Commitment will display on the Project Commitments Details report.

  • AP USER/POSTER: When the next vendor invoice is received (with the PO number on it), the AP User/Poster creates the Vendor invoice in Unanet and adds the appropriate Labor, Expenses or Items. The Vendor Invoice is Posted. Commitments will automatically be reduced after posting the vendor invoice.

  • AP MANAGER approves Vendor Invoice.

  • BILLING MANAGER: 

    • The subcontractor’s billable Time and Expense from the posted and approved Vendor Invoice will automatically be included on your customer invoice in your next billing cycle.

    • The Items you inserted on the Vendor Invoice marked as “billable” will automatically be included on your customer invoice in your next billing cycle.

Initial Setup

Step 1: Complete the Basic Purchasing setup

This is outlined in this section of the KC: https://knowledgecenter.unanet.com/x/HYSAB

Step 2: People Setup for Sub Time in Vendor Invoice

Set up your subcontractor(s) as People.

  • Set the Classification to "Non-Employee PO." Dilution will not apply. You can require that Projects require PO number if Classification is "Non-Employee PO." Note that how the bill rate is applied depends on the project Time tab "Bill Rate Source" setting, which may or may not pull from the Person Rates tab bill rate.



  • Give the sub the role of Vendor Invoice Person. This option will only appear if your system is running with the Project Financials family of Unanet licenses. This check box indicates that a user, typically a subcontractor user, will be used in the Labor or Expense Detail sections of the Vendor Invoice and the user will not enter timesheets or expense reports in Unanet.

    If the user only has this role, that user does not use a license and cannot log in to Unanet. Unlike the licensed users, reporting of hours and expenses for a VI Person user are not real-time entries and will only appear as costs to the project when the vendor invoice is posted. Subcontractors do not need to be in an approval group, since they are not entering a timesheet. 

Ongoing Usage

Step 1: Create the PO

Purchasing - Create a Purchase Order without a Purchase Requisition
  1. Navigate to Financials > Purchasing > Purchase Order. In the top right corner above the grid, click the +Purchase Order link to create a new Purchase Order.

  2. Enter the required Summary information on the Profile tab and click Save:
    1. LEGAL ENTITY - The legal entity to which this request will belong.
    2. Owning Organization - This is the organization on behalf of which the Purchaser is creating the PO.
    3. Purchase Amount - This can be positive or zero.
    4. Description - This can be used to describe the purpose of the PO.
    5. Document Date - This is pre-populated with the current date.
    6. Commitment Date - This is pre-populated with the current date.
    7. Fiscal Period - This is pre-populated with the current fiscal period.
    8. Vendor - This will specify your vendor.
    9. Purchaser - This will default to the Purchaser entering the PO.
    10. Receiver/Approver - Not a required field. This is the person who will approve the Vendor Invoice for this PO. The person who will approve the PO is the Purchasing Manager.

  3. On the Form tab and click Save:
    1. Select the check box for GENERATE PO FORM.
    2. Choose the PO Format Name.
    3. Check which Detail Level you want.
    4. Fill in any other fields as necessary.

  4. In the left menu of the PO, enter your detailed information. Note that the sum of these details must match the Purchase Amount on the Summary tab.
    1. Enter Labor details.
    2. Enter Expense details.
    3. Enter Items details.

  5. Click Submit.



Step 2: Add Vendor Invoice 

Purchasing - Add PO Subcontractor Time onto Vendor Invoice *without* a Unanet timesheet
For the portion pertaining to entering sub time into a Vendor Invoice, follow these steps:
  • AP USER/POSTER: When the next vendor invoice is received (with the PO number on it), the AP User/Poster creates the Vendor invoice Summary, entering the required details:



  • Then adds the appropriate labor. 
    • *NOTE: the "Approved PO Labor Lines" section is by default collapsed. Expand that section to see any approved PO Labor Lines.

  

  • The AP User/Poster then Posts the Vendor Invoice. Commitments will automatically be reduced after posting the vendor invoice. When the Vendor Invoice is posted, the Time will appear in the Unanet Reports (for example, the Time Details report).

Step 3: Submit and Post Vendor Invoice

When ready, submit and post your Vendor Invoice. 

Step 4: Submit and Post Customer Invoice

After the VI has been posted, you can now include these items on a customer invoice. The process is the same and there are no additional steps to ensure these hours and expenses are included on the invoice. You will run the billing and revenue post and create/complete the invoices. When you create the invoice, you will now see these sub labor and expenses show in the applicable section that you entered the items on the VI. If you put hours and dollars into the labor section, they will show in the labor section of the invoice. Below is an example of a customer invoice created with the VI details from the examples above.


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