Issue/Symptom/Question

How do I set up to allow automated hold payments by job by month until the job's billing for the month has been paid?

Applies To

Accounts Payable

AP Holds

Pay When Pay Hold

Resolution/Fix/Answer

Review System Options:

• Set 87 to 'Y' - allows you to use automated AP holds based on rules set up
• Review 124 to see if you might you want to require the entry of a Pay Request number if one is entered on the Document tab in the Invoice & Credit Memo screen when distributing to other tabs
  • Page 3 = Purchasing, Page 4 = Subcontracts, Page 5 is Jobs
• Set 144 to 'Y' if you want PENTA to create an automated Owner Payment hold 'only' when an AR Invoice is created for Cost Plus billed jobs and costcodes are mapped to Contract Lines - the hold will automatically get removed once the Cash Receipt has paid that AR invoice
• Set 178 to 'Y' if you want PENTA to create an automated Owner Payment hold either when you enter on the AP Invoice "PWP" for Cost Plus billed jobs or a Progress Billing # for Lump Sum billed jobs in the Pay Request # field and distribute the AP invoice as opposed to when the AR invoice is created like option 144

Use of Automated Hold Rule 10

User needs to set up an Automated Hold Code and use Hold Code Rule 10.

LUMP SUM BILLED JOBS

For lump sum billed jobs, the person entering AP Invoices into PENTA needs to enter a value in the Pay Request # field when entering the invoice. The existence of a Pay Request # on the invoice is what triggers PENTA to place the invoice on hold. A Pay Request # in essence is another term for progress billing #. The AP person enters the billing # they believe this invoice will be part of (since the job is billed lump sum there is no direct link between what the customer is billed and the actual jobs cost transactions). When the customer remits payment for that progress billing #, an AP user removes the Pay When Paid hold via the Remove Owner Payment Hold window. This is a manual process to place on hold and remove from the hold.

COST PLUS BILLED JOBS

For a cost plus billed job, where cost transactions are directly tied to a customer invoice, (e.g. costcodes are mapped to Contract Lines); when entering the AP invoice, the user enters “PWP” in the Pay Request # field. This is an instruction for PENTA to put this invoice on hold and assign the progress billing # as the Pay Request # as part of PENTA’s automated job billing process. When a Cost Plus invoice has been created for those AP costs in PENTA and a cash receipt has been recorded for those costs, PENTA automatically releases the "PWP" AP Hold for that invoice.

Cause 

Contractors don't want to pay their Subcontractors until the Owner has paid them for the Subcontractor's work in case there was a problem with it