LIQUIDATION

Use this subtask to view data specific to delivery invoices or invoices that have been set up with a Revenue Recognition method of "Liquidations." The system calculates the delivery invoice data displayed in this subtask. The Sales Order journal posting works in conjunction with Costpoint Billing to determine cumulative progress bill amounts and the calculated Invoice Amount, Liquidation Amount, and Net Invoice Amount for each sales order Delivery invoice. The posting process updates the Maintain A/R History screen with detailed billing data for each sales order invoice. The system creates an accounts receivable record with a Bill Type "D" (Delivery), and all associated data, including information displayed in this subtask: Invoice Amount, Liquidation Amount, and Net Invoice Amount. The only editable field in this subtask is Liquidation Amount.

View this subtask any time you add or change a delivery invoice in Costpoint.

Invoice, SO, Release, Customer

These non-editable fields default from the main screen.

Liquidation

Account

This non-editable field displays the liquidation account entered in the Header Accounts subtask of the Enter Sales Orders screen.

Organization

This non-editable field displays the organization for the liquidation account entered in the Header Accounts subtask of the Enter Sales Orders screen.

Project

This non-editable field displays the liquidation project entered in the Header Accounts subtask of the Enter Sales Orders screen.

Ref No 1

This non-editable field displays the reference number 1 for the liquidation account entered in the Header Accounts subtask of the Enter Sales Orders screen.

Ref No 2

This non-editable field displays the reference number 2 for the liquidation account entered in the Header Accounts subtask in the Enter Sales Orders screen.

Invoice Amount

This non-editable field displays the invoice amount calculated by the system. The invoice amount is the sum of all invoice line Total Amounts. All discounts, sales tax, and miscellaneous line charges are included in the cumulative invoice amount.

Liquidation Rate

This non-editable field displays the Liquidation Rate entered in the 1443 Info subtask of the Project Billing Info screen in Costpoint Billing for the applicable liquidation project.

Delivery Invoice

This non-editable checkbox is selected if the invoice is a Delivery type invoice.

Liquidation Amount

This field displays the liquidation amount calculated by the system, but can be changed. The system determines the liquidation amount by a series of calculations:

  1. An adjusted invoice amount that excludes discounts, sales tax, and miscellaneous charges is calculated as:

Adjusted Invoice Amount = Invoice Quantity × Net Unit Price

  1. The next step in the calculation process determines the following product:

L (refers to a temporary Liquidation Amount) = Adjusted Invoice Amount × Liquidation Rate

  1. The system must determine the amount progress billed to date by checking the project's A/R Header History for Progress Payment Bill Types (Bill Type = P):

P1 = The sum of all Invoice Amounts related to the Progress Payment Bills

  1. The system must determine the amount previously delivered by checking the project's A/R Header History for Delivery Bill Types (Bill Type = D):

D1 (refers to Delivery Amount #1) = Sum of Liquidation Taken Amounts where Balance Due Amount = 0

D2 (refers to Delivery Amount #2) = Sum of Liquidation Amounts where Balance Due Amount 0

  1. The Progress Payment Bill Amount is then calculated as:

P2 (refers to amount progress billed to date) = P1  -  D1  -  D2

  1. All elements have now been determined so that the Liquidation Amount can be calculated as follows:

If P2 L, then the Liquidation Amount = P, or

If P2 L, then the Liquidation Amount = L, or

If P2 = L, then the Liquidation Amount = L.

Net Invoice Amount

This field displays the net invoice amount calculated by Costpoint. The Net Invoice Amount is the Invoice Amount minus the Liquidation Amount. If there are no progress payment bills or delivery bills in the system for the related accounts receivable project, no liquidation amount is calculated and the Net Invoice Amount is equal to the Invoice Amount.