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Note: Purchasing functionality is included with the Financials license.


What's included on this page:

Prerequisites

You must have configured the following before commencing Purchasing configuration:

Choose your Usage Scenario(s)

As you consider your approach to using Unanet Purchasing, you will evaluate if you plan on using Scenario A, Scenario B, or some combination of both. You will also evaluate if you want or need to use Purchase Requisitions.

Review the scenarios below and evaluate against your business practices best. It is possible you may use both.

Optional: Using Purchase Requisitions

Assumptions:

  • You would like to formally track who first initiated the request and who approves that request before it becomes a Purchase Order.
  • Once it becomes a Purchase Order, you can proceed with either Scenario A or Scenario B.
  • Note that if the Purchase Requisition functionality is not used in Unanet, it may also be handled via email between requestors and approvers.

Workflow:

  • PURCHASE REQUESTOR would create and submit a Purchase Requisition.
  • PURCHASING MANAGER approves Purchase Requisition.
  • PURCHASER creates Purchase Order and specifies Purchase Requisition number.
  • Continue with workflow for Scenario A or Scenario B starting with Purchase Manager approves Purchase Order.

Scenario A: Subcontractors will enter their timesheet in Unanet

BENEFITS OF PUTTING SUB TIME IN TIMESHEETS

  • Lower G&A costs for the Prime as the Sub is entering the time and the Unanet software automatically creates the VI, instead of the Prime’s accounting team manually keying in the VI.
  • Faster reconciliation of subcontractor Vendor Invoice, since you have both the Vendor Invoice and the subcontractor timesheet in Unanet. Otherwise, you are trying to reconcile the Vendor Invoice with an Excel spreadsheet, which is more difficult.
  • Subs potentially receive payment earlier, since reconciliation is faster.
  • Planning specific subs: since Subs use a license, you can plan their labor and report on it into the future.
  • Real-time reporting on Sub costs and activities, versus never knowing clearly where you stand since you do not have their time or expense in Unanet.
  • Documented approvals on Sub timesheets (can mitigate invoice disputes).

Assumptions:

  • You will let your subcontractors enter Timesheets and Expense Reports in Unanet.
  • You are planning to have a 3-way matched Vendor Invoice where the subcontractor time and expenses will automatically be matched to 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.

Workflow:

  • PURCHASER creates Purchase Order.
  • PURCHASING MANAGER approves Purchase Order.
    • When PO is approved, Commitment will display on the Commitments Reports.
  • PO ASSIGNER creates PO Assignments, assigning person to the PO number.
  • RESOURCE ASSIGNER Creates Project Assignment.
  • SUB TIMESHEET USER: When the subcontractors enters their timesheet in Unanet, the system will automatically stamp the PO number to each timesheet cell.
  • SUB EXPENSE USER: When the subcontractors enter their expense report in Unanet, the system will automatically stamp the PO number to each expense report line.
  • MANAGERS approve the time and expense.
  • AP USER/POSTER creates the Vendor Invoice with the PO number, and the matched labor and the matched expenses will automatically be pulled into the vendor invoice under the section "Matched Labor" and "Matched Expenses."
  • AP MANAGER Approves Vendor Invoice.
  • BILLING MANAGER: 
    • Your Subcontractor’s time and Expense 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.

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.


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