LIQUIDATION

Use this tab to view data specific to delivery invoices, or invoices that have been set up with a revenue recognition method of Liquidations, and to adjust the liquidation amount if necessary.

For delivery invoices, Costpoint calculates the delivery invoice data (Invoice Amount, Liquidation Amount, and Net Invoice Amount) that displays on this tab. The sales order journal posting process works in conjunction with Costpoint Billing to make these calculations and determine cumulative progress bill amounts.

The posting process updates the Manage Accounts Receivable History screen in Accounts Receivable with detailed billing data for each sales order invoice. Costpoint creates a corresponding accounts receivable record with a Bill Type of D (Delivery).

Invoice, SO, Release, Customer

These fields display from the main screen.

Liquidation

The fields in this group box display from the Accounts tab of the Manage Sales Orders screen.

Account

This field displays the liquidation account. The field on the right displays the description associated with the liquidation account.

Organization

This field displays the organization for the liquidation account. The field on the right displays the description associated with the liquidation organization.

If you select the Use Project Owning Org check box on the Set Up Sales Group Abbreviations screen, the organization associated with the liquidation project defaults in this field.

Project

This field displays the liquidation project. The field on the right displays the description associated with the liquidation project.

Reference 1

This field displays the reference number 1 for the liquidation account. This column displays under the custom label you defined for this field.

Reference 2

This field displays the reference number 2 for the liquidation account. This column displays under the custom label you defined for this field.

Liquidation Rate

This field displays the liquidation entered on the 1443 Info tab of the Manage Project Billing Information screen for the liquidation project.

Delivery Invoice

This non-editable check box is selected if the invoice is designated as a delivery invoice.

Invoice Amount

This field displays the invoice amount. The invoice amount is the sum of all invoice line total amounts, including all discounts, sales tax, and miscellaneous line charges.

Liquidation Amount

This field defaults the liquidation amount, calculated by Costpoint as follows:

  1. Begin with an adjusted invoice amount that excludes discounts, sales tax, and miscellaneous charges:

Adjusted Invoice Amount = Invoice Quantity * Net Unit Price

  1. Calculate a temporary liquidation amount (L):

L = Adjusted Invoice Amount * Liquidation Rate

  1. Calculate the amount progress billed to date (P1) by checking the project's A/R header history for Progress Payment bill types (Bill Type = P):

P1 = Sum of all invoice amounts related to the progress payment bills

  1. Calculate the amount previously delivered by checking the project's A/R header history for Delivery bill types (Bill Type = D):

D1 = Sum of Liquidation Taken Amounts where Balance Due Amount = 0

D2 = Sum of Liquidation Amounts where Balance Due Amount = 0

  1. Calculate the progress payment bill to date amount (P2):

P2 = P1 – D1 – D2

  1. Compare P2 and L to determine the liquidation amount as follows:

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

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

If P2 = L, then Liquidation Amount = L

Net Invoice Amount

This field displays the net invoice amount. Costpoint calculates this value by subtracting Liquidation Amount from the Invoice Amount. If there are no progress payment bills or delivery bills in Costpoint for the related accounts receivable project, no liquidation amount is calculated and the Net Invoice Amount equals the Invoice Amount.