Line Info 9-19

This non-editable field displays inception-to-date paid costs for large businesses.  Only projects that are designated as "large" businesses will have costs calculated for this line. If your project is classified as a "small" business the inception-to-date costs display on Line 10.

You can designate a project as a "large" business by selecting the Bill Cost Incurred on Cash Basis checkbox in the Controls tab of the Project Billing Information screen (Projects\Maintain\Billing).

Three types of costs are included on this line, as follows:

• Previously billed allowable costs- The source for previously billed allowable costs is the Billing History screen.  This screen contains costs that have been included on prior bills and have been posted in the system. Since only paid costs can be billed for a "large" business, all costs in this screen are assumed to be paid.

• Unbilled allowable paid costs - The source of these costs is the Open Billing Detail screen (Projects\Maintain\Billing).  Only paid costs will be included in this calculation. The system uses the Cash Basis Amount field in the Cost group box of the Open Billing Detail screen (Projects\Maintain\Billing) to determine if a cost is paid.

Note: Costs that are not subject to cash basis billing are included in the calculation of Line 10.  Labor, travel, and inventory costs are assumed to be paid when incurred and are included in the calculation for line 10.

 

Warning: You must run the Update Cash Basis Bills process (Projects\Process\Billing) before you calculate progress payment bills.  The system uses the Update Cash Basis Bills process (Projects\Process\Billing) to determine the costs that have been paid.  If you do not run the Update Cash Basis Bills process  (Projects\Process\Billing) at the correct time, the progress payment bills will be incorrect.

Allowable paid subcontractor invoices - The source for these costs is the Subcontractor Progress Payments screen (Projects\Configure\Billing).  You must run the Update Subcontractor Progress Payments process before you calculate progress payment bills.  Only delivery invoices are included on this line.  Subcontractor progress payment invoices are included on Line 14.  

This non-editable field displays total allowable paid costs if your company is classified as a  "small" business. If your company is a "large" business then this field displays amounts for non-cash basis accounts.  

Your company will be classified as a "small" business if you have not selected the Bill Costs Incurred on a Cash Basis checkbox in the Controls tab of the Project Billing Information screen.   If you have selected it, your project will be treated as a "large" business.

The system will include the following amounts on Line 10 for "small businesses:"

• Previously billed allowable costs, burdens, and COM from the Billing History screen.

• Allowable incurred costs, burdens, and COM from the Open Billing Detail screen (Projects\Maintain\Billing), excluding subcontractor progress payment invoices. Burden and COM on subcontractor invoices are included.

• Allowable subcontractor delivery invoices (invoice amount) from the Subcontractor Progress Payments screen (Projects\Configure\Billing).

• Allowable burdens and COM on subcontractor delivery invoices from the Open Billing Detail screen (Projects\Maintain\Billing).

The system will include the following amounts if your business is classified as a "large business:"

• Allowable previously billed cost on line 10 of the Billing History screen.

• Allowable previously billed burdens and COM from the Billing History screen, including burdens for costs billed on line 10 as well as for cash basis costs billed on line 9.

• Allowable direct labor form the Open Billing Detail screen (Projects\Maintain\Billing).  Direct labor is always billed as incurred.

• Allowable inventory form the Open Billing Detail screen (Projects\Maintain\Billing).  These accounts should not be designated as cash basis and will be billed in full.

• Allowable travel from the Open Billing Detail screen (Projects\Maintain\Billing).  These accounts should not be designated as cash basis and will be billed in full.

• Allowable burdens and COM on Allowable costs from the Open Billing Detail screen (Projects\Maintain\Billing) for costs billed on line 10 as well as for cash basis costs billed on line 9. For cash basis accounts, the burden is limited to the portion of the transaction amount that has been paid.

• Allowable burdens and COM on subcontractor delivery invoices included on line 9.

The system calculates the value in this non-editable field by adding lines 9 and 10.

This field displays total incurred costs and related burdens.

Enter the estimated cost to complete the project on this line.  

The system will use the Estimate to Complete field from the 1443 Info tab of the Project Billing Information screen (Projects\Maintain\Billing) if the project is a WIP project.  The Cost of Goods Sold process populated the Estimate to Complete field automatically.  You can enter the estimate to complete manually if the project is not a WIP project.

This non-editable field displays the total incurred costs multiplied by the progress payment rate.  The calculation of this field depends on whether the total estimated costs exceed the contract price of the contract (Line 5).  

• If the total estimated costs (Line 12a plus Line 12b) do not exceed the contract price, the systems multiplies the total eligible costs (Line 11) by the progress payment rate (Line 6a) to arrive at Line 13 costs.  

• If the estimated costs (Line 12a plus Line 12b) exceed the contract price (Line 5), the system calculates a loss ratio percentage by dividing the contract price by the estimated costs.  It multiplies this percentage by the total eligible costs (Line 11) to reduce the total costs eligible for progress payment.  It then multiplies the resulting amount by the progress payment rate to arrive at the Line 13 costs.  The following example shows this calculation:

Line 12a. Total Costs Incurred to Date       4,825,000

Line 12b. Estimated Costs to Complete         425,000

Estimated Total Costs                               5,250,000

Line 5 Contract Price                                5,000,000

Loss Ratio Percentage

   (Line 5 Contract Price divided by EAC)

         5,000,000/5,250,000                   95.238095%

Line 11: Total Costs Eligible for

Progress Payments                        4,600,000

Recognized Cost for Progress Payments    

4,600,000*95.238095%                 4,380,952

Progress Payment Rate                                  80%

Line 13: Eligible Costs   4,380,952*80%    3,504,762

This non-editable field displays the total paid subcontractor progress payment invoices.  

The source for this field is the Paid Amount field in the Subcontractor Progress Payments screen (Projects\Configure\Billing History).  The system will combine the lines in this field for all vouchers that have an invoice type of "Progress Payment."

Warning: You must run the Update Cash Basis Bills (Projects\Process\Billing) and the Update Subcontractor Progress Payments before you calculate the progress payment bill.  Failure to do so will result in an incorrect amount on this line.

This non-editable field displays the liquidated amount of subcontractor invoices.

The system derives the amount for this line from the Liquidation Amount field in the Subcontractor Progress Payment screen (Projects\Configure\Billing History).  Only vouchers with the invoice type of "Delivery" will be used in the calculation.  The liquidation amount is the difference between the invoice amount and the shipment value.

On subcontractor delivery invoices, the paid amount has already been included on Line 9 or Line 10, depending on the project's business classification.  The liquidation amount allows you to bill for the amount that you have paid to the subcontractor for his progress payments.

This non-editable field displays the subcontractor progress payment from delivery invoices that were not included on Line 9 or Line 10.

The system calculates this line by subtracting Line 14b from Line 14a.  

This non-editable field displays  the unpaid subcontractor progress payments for small businesses.  

For large businesses, this line is zero. It is the difference between Invoice Amount and Paid Amount fields from the Subcontractor Progress Payments (Projects\Configure\Billing History).    

This non-editable field displays the amount of unliquidated progress payments for both paid and unpaid subcontractors.  The system calculates this non-editable line by adding Line 14c and 14d.  

This non-editable field displays the total dollar amount of costs eligible for progress payments. It is calculated by adding Lines 13 and 14e.

This non-editable field displays the maximum amount of contract available to be progress billed.

he system calculates the value in this field by multiplying the contract price by the liquidation percentage in the 1443 tab of the Project Billing Information screen (Projects\Maintain\Billing).  

This non-editable field displays the lesser of Lines 15 or Line 16.  The system compares the total costs eligible for progress payment with the maximum amount of the contract eligible to be progress billed and uses the lesser of the two values.

This non-editable field displays the sum of all progress payments previously submitted.  Because all calculations on the 1443 are inception-to-date, the system subtracts all previous progress payment invoices to arrive at the amount requested on this invoice.

The source for this value is the Invoice Amount field of the Initialize A/R History screen.

This non-editable field displays the maximum balance eligible for progress payments.  he system calculates the value in this field  by subtracting Line 17 from Line 18.