LINE-BY-LINE DISCUSSION OF FORM 1443

This section discusses each line of the form 1443. Specifics on the source of the data, how amounts were calculated, and the method of editing are provided.

Section I - Identification Information

This section discusses the header of the invoice or Section I - Identification Information.

1. To: Name And Address Of Contracting Office (Include Zip Code)

Enter the address in the Contractor Addresses screen (Materials » Sales Order Entry » Sales Order Entry Controls) and assign a code in the Contractor field. Then link this code to the project in the 1443 Info subtask of the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup); the code appears in the Address field of the Contract Info group box. You can edit this address in the Addresses subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

Paying Office

Enter the paying office address in the Govt. Payment Offices screen (Projects » Billing » Controls) and assign a code in the Payment Office field. Then link this code to the project in the 1443 Info subtask of the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup); the code appears in the Address field of the Contract Info group box. You can edit this address in the Addresses subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

2. From: Name And Address Of Contractor (Include Zip Code)

Enter the address in the Remittance Addresses screen (Projects » Billing » Controls) and assign a code in the Remittance field. Then link this code to the project in the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup); the code appears in the Remittance Address field. You can edit this address in the Remit To subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

3. Small Business

Control this box's status by using the Bill Cost Incurred on Cash Basis check box in the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup). If your company is classified as a "large business" for this project, select the Bill Cost Incurred on Cash Basis check box. If your company is classified as a "small business" for this project, do not select this check box. Line 3 appears in the Section I - Identification Information subtask of the Edit Progress Payment Billings screen; however, because this selection in the Project Billing Info screen affects the calculation of some of the billing lines, such as lines 9, 10, 12A, and 14D, you cannot edit this selection in the Section I - Identification Information subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

4. Contract No.

This line is the Prime Contract No. field in the Maintain Project Master or Basic Info screens in Costpoint Project Setup. You can edit it in the Section I - Identification Information subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

5. Contract Price

This line is the Price Basis selection from the 1443 Info subtask of the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup). Valid options are:

Enter the values associated with each of the Contract and Funded selections in the Modifications screen (Projects » Project Setup » Controls). Enter the "Other" selection value in the Other Amount field in the 1443 Info subtask of the Project Billing Info screen. Because this selection affects the calculation of some of the billing lines, such as lines 13 and 21B, you cannot edit it in the Section I - Identification Information subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

6A. Progress Payments %

This line is the Progress Payment rate from the 1443 Info subtask of the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup). Because this selection affects the calculation of some of the billing lines, such as lines 13 and 20C, you cannot edit it in the Section I - Identification Information subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

6B. Liquidation %

This line is the Liquidation rate from the 1443 Info subtask of the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup). Because this selection affects the calculation of some of the billing lines, such as lines 16 and 21C, you cannot edit it in the Section I - Identification Information subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

7A. Date Of Initial Award - Year

This line is the Initial Award Date from the 1443 Info subtask of the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup). Complete this field in a "MM/DD/YYYY" format, such as "08/01/2003." The year for this example will default as "2003" in line 7A of the Section I - Identification Information subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings) and cannot be edited.

7B. Date Of Initial Award - Month

This line is the Initial Award Date from the 1443 Info subtask of the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup). Complete this field in a "MM/DD/YYYY" format, such as "08/01/2003." The month in this example will default as "08" in line 7B of the Section I  - Identification Information subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings) and cannot be edited.

8A. Progress Payment Request No.

This line originates from the Last Bill Number field in the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup) (be sure to select the Enable Project Specific Bill Numbering check box in the Billing Settings screen). When the progress payment bill is calculated, the system increments the right-most numeric value of this number by one and inserts the result into Line 8A of the Section I - Identification Information subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings). You cannot edit this field.

8B. Date Of This Request

This line initially defaults to the Invoice Date specified in the Calculate Progress Payment Billings screen. It appears as the non-editable Bill Date field in the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings). You can edit it, however, in the Section I - Identification Information subtask under line 8B, Date of This Request. You can optionally leave the Invoice Date blank when calculating and then enter a date when printing the bills in the Print Progress Payment Bills screen.

Section II - Statement Of Costs Under This Contract Through _____ (Date)

This section discusses the incurred cost lines, which formulate the maximum amount of costs eligible for billing. The sources of the data, how the lines were calculated, and method of editing will also be provided. The Through Date is the same date as Line 8B, Date Of This Request.

9. Paid Costs Eligible Under Progress Payment Clause

For projects on which your company is classified as "small business," this line is not used and is always zero. Because small businesses are not subject to Cash Basis Billing, there is no calculation of the costs that have been paid. For small businesses, all incurred costs are eligible for billing and appear on line 10.

For projects on which your company is classified as "large business," this line consists of three different types of costs:

These are the cash basis transactions, residing in the Maintain Billing History screen with a Transaction Type of COST, that have been billed ITD. These are the paid Other Direct Costs (ODCs) transactions that have been previously billed. This does not include direct labor, travel, inventory, subcontractor progress payment invoices, burdens, or Cost of Money (COM), because these transactions are not subject to cash basis billing. Note that paid subcontractor delivery invoices that have been accepted by your company are included in line 9, but their burdens are not.

These are the cash basis ODC transactions, residing in the Maintain Open Billing Detail screen that have been paid but not billed. This does not include direct labor, travel, inventory, subcontractor progress payment invoices, burdens, or COM, because these accounts are not subject to cash basis billing. Subcontractor delivery invoices are included on line 9; the source for these transactions is not the Maintain Open Billing Detail screen, but rather the Maintain Subcontractor Progress Payments screen (Projects » Billing » Billing History). The Update Subcontractor Progress Payments process transfers subcontractor transactions from Maintain Open Billing Detail to Maintain Subcontractor Progress Payments.

The source for this amount is the Paid Amount field in the Maintain Subcontractor Progress Payments screen (Projects » Billing » Billing History) for Invoice Types of Delivery. This is not the Shipment Value, but rather the paid portion of the Invoice Amount, which has been "netted" for liquidation of progress payments. The system checks the Payments subtask to ensure the invoice has been paid. Also, the Accepted field must be Y. If the Invoice Amount and Paid Amount are equal, this column will automatically be set with a Y (Yes) during the Update Subcontractor Progress Payments process. You can also manually change this field. Note that the burden for these costs is considered to be incurred costs, rather than paid costs, and appears on line 10 instead of line 9.

In the Line Detail subtask of the Edit Progress Payment Billings screen, you can review and edit the transactions that compose this line. Editing is restricted to the Write Off Amount, Hold Amount, Write Off Description, and Hold Reason Description fields. In addition, for lines containing burden or cost of money, you can edit the Billing Amount field. Changing the Write Off Amount and Hold Amount fields automatically changes the Billing Amount field. Note that you must select the Allow User to Edit Bills check box in the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup) before you can make changes. Also, if you want to place amounts "On Hold" for less than the Billing Amount, you must select the Allow Transactions To Be Partially Billed check box in the Project Billing Info screen. There is no partial billing of subcontractor transactions; either the invoice is accepted or rejected in the Maintain Subcontractor Progress Payments screen (Projects » Billing » Billing History) through the Accepted column.

10. Incurred Costs Eligible Under Progress Payment Clause

 As with line 9, the system calculates line 10 differently for "large" and "small" businesses. If your company is classified as a "small business" for the project, line 10 includes the following:

If your company is classified as a "large business" for the project, line 10 includes the following:

You can edit line 10 in the same fashion as line 9.

11. Total Costs Eligible For Progress Payments (Item 9 plus 10)

The system calculates this field by adding line 9 and line 10. It cannot be edited.

12a. Total Costs Incurred To Date

The system calculates this line by adding the incurred direct costs and their appropriate burden costs, at actual or target rates. The source for this data is the Project Summary table (PROJ_SUM, PROJ_BURD_SUM) for current year costs and the Prior Year Cost and Revenue screen (PSR_PY_SUM, PSR_PY_BURD_SUM) in Costpoint Project Setup for prior years. You can edit this line in the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

12b. Estimated Additional Cost To Complete

This line is the amount entered in the Estimate to Complete field in the 1443 Info subtask of the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup). If this project has been classified as Work-In-Process, and you have completed the Cost of Goods Sold screen (Projects » Project Setup » Revenue Setup), the value entered in the Estimated Costs field will default to the 1443 Info subtask of the Project Billing Info screen. For non-WIP projects, you can manually enter the Estimate to Complete value in the 1443 Info subtask. You can edit this line in the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

13. Item 11 Multiplied By Item 6a

This line is a calculated amount. It is determined by the amount of estimated costs and whether they have exceeded the Contract Price. If the estimated costs (line 12a added to line 12b) do not exceed the Contract Price (line 5), the system multiplies the Total Eligible Costs (line 11) by the Progress Payment Rate (line 6a) to arrive at the line 13 costs. If the estimated costs exceed the Contract Price (line 5), the system obtains 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. There is a Line Detail subtask available for this line in the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings). Line 13, and the Line Detail subtask, are non-editable.

Example:

Line 12a: Total Costs Incurred To Date    

4,825,000

Line 12b: Estimated Additional Cost To Complete 

425,000

Estimated Total Costs (Line 12a plus 12b)  

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 Costs for Progress Payment

 

4,600,000 x 95.238095%      

4,380,952

Progress Payment Rate     

80%

Line 13: Eligible Costs 

 

4,380,952 x 80% 

3,504,762

 

14a.  Progress Payments Paid To Subcontractors

The source for this line is the total Paid Amount column from the Maintain Subcontractor Progress Payments screen (Projects » Billing » Billing History), for transactions with an Invoice Type of Progress Payment. The Paid Amount field is updated by the Payments subtask. The transactions composing this line balance are available for review purposes only in the Line Detail subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings). You can complete edits to this line in the Maintain Subcontractor Progress Payments screen. For example, if a subcontractor transaction needs to be placed "On Hold," change the Accepted field in the Maintain Subcontractor Progress Payments screen from Y to N.

14b. Liquidated Progress Payments To Subcontractors

This line is derived from the Liquidation Amount column in the Maintain Subcontractor Progress Payments screen (Projects » Billing » Billing History). For Invoice Types of Delivery, the Liquidation Amount is the difference between the Invoice Amount and Delivery 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. Review and editing of this line is identical to line 14A.

14c. Unliquidated Progress Payments To Subcontractors (Item 14a less 14b)

The system calculates this line by subtracting Line 14b from Line 14a. This represents the portion of subcontractor progress payments from delivery invoices that were not included on line 9 or line 10. You cannot edit this line.

14d. Subcontract Progress Billings Approved For Current Payment

The system calculates this line, which is the unpaid subcontractor progress payments, only for small businesses. For large businesses, this line is zero. It is the difference between the Invoice Amount and Paid Amount fields from the Maintain Subcontractor Progress Payments screen (Projects » Billing » Billing History). The process of reviewing and editing this line is identical to line 14a.

14e. Eligible Subcontractor Progress Payments (Item 14c plus 14d)

The system calculates this line by adding lines 14c and 14d. This is the amount of unliquidated progress payments for both paid and unpaid subcontractors. You cannot edit this line.

15. Total Dollar Amount (Item 13 plus 14e)

The system calculates this line by adding lines 13 and 14e. This is the total dollar amount of costs eligible for progress payment. You cannot edit this line.

16. Item 5 Multiplied By Item 6b

The system calculates this line by multiplying the Contract Price by the Liquidation Percentage in the 1443 Info subtask of the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup). This represents the maximum amount of the contract available to be progress billed. You cannot edit this line.

17.  Lesser Of Item 15 Or Item 16

This line is the lesser of line 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. You cannot edit this field.

18.  Total Amount Of Previous Progress Payments Requested

This line is the sum of all progress payment invoices previously submitted. Because all calculations on the 1443 are ITD, the system subtracts all previous progress payment invoices to arrive at the amount requested on this invoice. The source for this value is the Maintain A/R History screen, Invoice Amount field. You can edit this line in the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

19. Maximum Balance Eligible For Progress Payments (Item 17 less 18)

The system calculates this line by subtracting line 17 from line 18 to arrive at the maximum balance eligible for progress payments. You cannot edit this field.

Section III - Computation Of Limits For Outstanding Progress Payments

The system uses lines 20 through 26 in the calculation of limits on outstanding progress payments. These calculations are performed only if delivery invoices have been submitted and accepted at the time progress payment billings are computed.

Computation Of Progress Payment Clause (a(3)(i) or a(4)(i)) Limitation

20a.    Costs Included in Item 11, Applicable To Items Delivered, Invoiced, and Accepted To The Date In Heading Of Section II

You must manually enter the value in this line. Currently, no method exists to automatically calculate this line, which is the sum of eligible costs that have been delivered, invoiced, and accepted. You can edit this line in the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

20b.    Costs Eligible For Progress Payments, Applicable To Undelivered Items And To Delivered Items Not Invoiced and Accepted (Item 11     less 20a)

The system calculates this line by subtracting line 20a from line 11. This is the incurred costs associated with undelivered items. You cannot edit this line.

20c. Item 20b Multiplied By Item 6a

The system calculates this line by multiplying the cost associated with undelivered items by the progress payment percentage. This represents the amount of costs incurred on undelivered items eligible for progress payment. You cannot edit this line.

20d. Eligible Subcontractor Progress Payments (Item 14e)

This line has the same value as line 14e. You cannot edit this line.

20e. Limitation a(3)(i) or a(4)(i) (Item 20c plus 20d)

The system calculates this line by adding lines 20c and 20d. This value represents the sum of eligible subcontractor progress payments and costs incurred on undelivered items. You cannot edit this line.

Computation Of Progress Payment Clause (a(3)(ii) or a(4)(ii)) Limitation

21a. Contract Price Of Items Delivered, Accepted, and Invoiced To Date In Heading Of Section II

This line is the sum of the delivery amounts in the AR_HDR_HS table. It is the total value of goods and services that have been delivered by subcontractors up to and including the bill date on which the calculation is performed. You can edit this line.

21b. Contract Price Of Items Not Delivered, Accepted And Invoiced (Item 5 less 21a)

The system calculates this line by subtracting line 21a from line 5. It represents the price of items not delivered. You cannot edit this line.

21c. Item 21b Multiplied By Item 6b

The system calculates this line by multiplying line 21b, price of undelivered items, by line 6b, liquidation percentage. You cannot edit this line.

21d. Unliquidated Advance Payments Plus Accrued Interest

You must manually enter the value in this line. It represents advance payments that have been made in addition to the regular progress payment cycle. You can edit this line in the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

21e. Limitation (a(3)(ii) or a(4)(ii)) (Item 21c less 21d)

The system calculates this line by subtracting line 21d from line 21c. This value is the limitation for outstanding progress payments. You cannot edit this line.

22. Maximum Unliquidated Progress Payments (Lesser of Item 20e or 21e)

This line is the lesser value of lines 20e and 21e. This is the maximum amount of unliquidated progress payments that are allowed. You cannot edit this line.

23. Total Amount Applied And To Be Applied To Reduce Progress Payment

To calculate this line, the system first sums the Liquidation Amount on Invoice Types of Delivery, that have been paid, from the Maintain A/R History screen (Accounting » Accounts Receivable » Beginning Balances). It then sums the unpaid delivery invoices from the same table and multiplies the result by the liquidation rate. The system adds together the values resulting from these two calculations to arrive at the estimated total liquidations. You cannot edit this line.

24. Unliquidated Progress Payments (Item 18 less 23)

The system calculates this line by subtracting line 23 from line 18. Normally, this calculation results in a positive value. However, line 23, estimated total liquidations, can occasionally exceed line 18, total amount of previous progress payments requested. This occurs if delivery invoices were invoiced but not paid and require no liquidation. In this case, line 24 will be zero (line 24 cannot be a negative value). You cannot edit this line.

25. Maximum Permissible Progress Payments (Item 22 less 24)

The system calculates this line by subtracting line 24 from line 22. It subtracts unliquidated progress payments from maximum unliquidated progress payments to arrive at maximum progress payments allowed or available. You cannot edit this field.

26. Amount Of Current Invoice For Progress Payment (Lesser of Item 25 or 19)

This line is the lesser value of lines 25 and 19. The system compares the maximum balance eligible for progress payments (line 19) with the maximum permissible progress payments (25) and uses the smaller value as the invoice amount.

27. Amount Approved By Contracting Officer

The value from line 26 defaults to this line. Note that the contract officer approving the invoice can change this amount at his discretion.

Certification

Name And Title Of Contractor Representative Signing This Form

You entered the name and title of the contractor representative from your company in the 1443 Info subtask of the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup). You can edit these values in the Section I - Identification Information subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings).

Name and Title Of Contracting Officer

You entered the name of the contracting officer from the government in the Government Contract Info screen (Projects » Project Setup » Project Master). You can edit it in the Section I - Identification Information subtask of the Edit Progress Payment Billings screen (Projects » Billing » Edit Billings). You must manually enter the title of the contracting officer in the Section I - Identification Information subtask.