Construction Help and User Guide

1. Customer Applications for Payment

The Applications Ledger allows you to review all the Applications/Valuation and Retentions linked to a particular project. This is the recommended process for managing and working with Applications. You are able to:

• Enter Applications
• Enter Valuations
• Print Invoices
• Release Retentions
• Reverse Valuations
• Amend Allocations

The Applications Ledger is reproduced in each project, so Project Managers can see all the details on the projects they are responsible for without needing access to the Applications Ledger.

A Customer application for payment is a construction document that outlines what the you are due to be paid along with justification (this would vary on contract by contract basis).  The application for payment would generally include documentation outlining what services and materials were used on the Project.  The document would include materials used, unit prices and quantities of each and any Labour used.  This is generally supplied as backing documentation to the Sicon application.  The application itself provides both the owner (you as the Customer) and the client a method of controlling what items or materials have been provided to the client by yourselves. It is recommended to save a copy of such documentation against the project.

The Customer Application Ledger Screen, displays a list of current Application transactions against the selected Project.  When the screen loads you have to select a Project, which would display a list of all these transactions, defaulting into date order.  The screen then allows you to add or edit applications and valuations, release retention, print valuations as a certificate, post the invoice.  You can also reverse any valuations that have been entered incorrectly, amend the valuation allocations to applications and write off retention.

The blank ledger screen is shown below:

You will need to ensure that you have entered a project in the search filters before you can start working with any aspect of applications.

Once entered then all the transactions will be displayed. Further filtering can be done based on the Transaction Types, Date Range or Customer, by clicking on the Filter Transactions Funnel:

Transactions can be filter by:

• Applications
• Valuations
• Invoices & Credit Notes
• Payments & Receipts
• Retentions:

The table below outlines the information displayed once a Project has been selected for each transaction type

1.1. Adding an Application

When creating an application, the value will be added to the nominal based on the Value recognition method set in Applications Setting.

You will need to ensure that you have entered a project in the search criteria. To create a new Application, click the Add button then Add Application from within the Application Ledger.

Which opens the New Outgoing Application Window.

Account Details:

Project Number – Automatically populated from the main screen.

Customer details – This is a look up to the Sage Customer list; a Customer must be selected in order to continue with the Application. The customer will automatically default from the project.

Project Manager – This will automatically populate from the Project (if populated) or can be selected from the drop-down list or Manually typed.

Project PO Number – Populated from the Project if set (this cannot be amended or entered here).

Reference Details:

Application Date – The date of the Application, will default to today’s date.

Expiry Date – A date that the Application will Expire.  For reporting purposes only.

Payment due Date – The date the contracted payment is due.  For reporting purposes and may be selected from the date lookup.

Reference – Combination of the Project number and Application number which is system generated if the auto application number generation (by Project) is turned on.  The numbering against the Project can have an Application number 1, 2 etc.

2nd Reference – Free text field to record an Internal or External Reference number.

Query Flag – Flag that allow a user to set the Application on query.

Group – The ability to Group Applications together.  For example, where a Project, may have multiple Customers, or to Group Applications from a specific phase of a build.  The Cumulative figure will be calculated per Group.  By default, the group is set to ‘Default’.

Application Values Tab:

Cumulative Gross – Total Gross value for all applications for the Project and Customer.  If using Groups, then it calculated the total figure for the Group.  If the Cumulative Gross is updated, this will update the Gross Application.

Cumulative Retentions – Total Retention value for all applications for the Project and Customer.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Cumulative Discount ­– Total Discount value for all applications for the Project and Customer.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Cumulative Payable – The total amount payable for all applications for the Project and Customer.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Cumulative Tax Value­ – Total Tax value for all applications for the Project and Customer.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Gross Application – The total Gross value being applied for this Application.  If this is update, then the Cumulative Gross is updated.

Retentions Total – Total Retentions for the Application.  This is updated from the Deductions Tab.  Not editable.

Value Payable – Total amount payable for this Application.  Gross Application – Retentions Total.  Not editable.

Tax Value – Total Tax value for the Application.  This is calculated from the Tax Value of the detail lines under Nominal Analysis.  Not editable.

Discount % – Discount percentage for the customer that should be applied to the Application.  This can be applied before or after any other deductions (e.g. Retention).  This will populate the Discount Value Field.

Discount Value – Discount value for the customer that should be applied to the Application.  This can be applied before or after any other deductions.  This will populate the Discount % Field.

Risk Amount – This is a way to record on risk on the applied for value and is for reporting purposes only.  (e.g. If you are applying for 10,000 but realistically expecting the Valuation to be 8,000 the Risk Amount would be 2,000).

Nominal Analysis – This allows you to break down the Application into Multiple lines, either based on Project Header, Project Level, Nominal, Narrative or Tax Code.  The total must equal the Value Payable.  If there are Retentions being held on the Application these will be shown as negative lines on the Nominal Analysis.  This will allow you to split the Retention to different Tax codes, Project Headers or Phase, Stage, Activities if required.

Valuation Detail – This tab shows you current valuations against the Applications as well as the Cumulative.  The Cumulative will be based on the Project and Customer or the Group.

Accumulations Tab:

Accumulations – Displays all Applications related to the Project.  This is not dependant on the Group.

Note Tab – Note tab allows the recording of Notes against the Application.  These notes will appear on the Valuation Invoice when it is produced.

Deductions Tab:

Retentions – The type of retentions the customer is retaining from you against the Application.  These are used to break down the types of Retention which will be taken off the whole Applications (or default through to the Valuation).  The different types of retention are used for filters on the Retention Release.  When adding a retention for the first time, these will add the retention lines to the Nominal Analysis section.  You can set defaults on the Project which will automatically add the retention percentages to the Application(s).

Retention % – Used to record the Retention Percentage on the Gross Application.  Will update the Retention Value.

Retention Value – Used to record the Retention Value for the Application.  Will update the Retention %

NOTE: The retention amount on the Application will be generated and be available to be released at a later date.  Adjusting the Retentions value on the application will adjust the retention created.  In order to release retention please see Retention Release.

Due Date – The due date of the Retention Release.  The due date is for reporting purposed and will be used on Retention filters.  The Due Date is also a compulsory field if a retention value has been added.

NOTE: The retention total is updated on the Applications Values Tab.

Remaining net Value – This shows the total value of the Application less any deductions.

CIS: This is only applicable if you are using Sales CIS (i.e. at not Gross registered with HMRC).  See the CIS Help and User Guide for more information on Sales CIS.

CIS applicable value – Calculated field to show the value application for CIS deduction.

CIS rate – The CIS deductible rate setup in CIS settings.

CIS due – The total amount of CIS due calculated from the CIS applicable value and the CIS rate.

Memo:

Memo – Adding a memo to the memos tab records any notes made against the Application with a Date, Time and the User that made the note.

Analysis:

Analysis Codes – The Analysis Code available on the Application are configured within the Maintain Invoice and Order Analysis Codes within Sage.

The Analysis Code, first need to be setup within the Maintain Analysis Code in Accounting System Manager.

They can then be added to the Maintain Analysis Codes in the SOP Maintenance Menu.

When saving an Application, a window will be displayed to confirm the nominal postings.

Note: This example is using Value Recognition on Application.

The window will allow you to review dates for the transactions, nominals, narrative and values. If any of these need to be revised click cancel and go back to the application and make the necessary amendments.

The Nominal Postings window will show the Credit to the P & L account (if recognising on Application) that is set against the Application Nominal lines. The Applications debtors account will be debited along with the Sales Discount. and where relevant any retentions will all be debited to the Retention Debtors (Applications) account. There is also a debit for the Sales Discount.  This would be reverse for a Credit Application (negative Application).

Upon saving you will be returned to the Customer Applications Ledger screen, with a breakdown now displayed:

1.2. Adding a Valuations and Allocating to an Application

The Valuation is the agreed amount the Customer is going to pay and the Invoice is generated directly from the Valuation.

You can add a Valuation by clicking the Add Button then Add Valuation, if there were any existing Valuations for the Application they would be shown in the Application Valuation Transactions box.

When you click on Add the Valuation the Valuation Window is shown.

Project Number – The Project number is automatically populated from the Customer Application Ledger This is not editable.

Customer Details (Code, Short Name, Post Code) – The Code is automatically populated from the Project.  This can be overwritten is required.

Project Description – Description of the Project.  This is not editable.

Project PO Number – The Project PO Number if stored on the Project.  This is not editable.

Reference – The Reference associated to the Valuation Invoice.  This is a required field.

Invoice No – This will be populated when the Valuation is printed to produce an Invoice.

Valuation Date – The date of the Valuation, defaulting to today’s date.

Payment Date – A date field when the Payment is expected, defaulting to today date.  This is for reporting purposes only.

Invoice Date – The date of the Invoice.  This is updated when the Invoice is printed.

Valuation Type – A selection of Invoice or Credit Note, depending on the Type of Valuation.

Opening Balance – This sets the Valuation as an Opening Balance.  An Opening Balance Valuation doesn’t create an Invoice, or update the Nominal (apart from reversing the Application).  The Valuation will automatically be marked as Paid and won’t be editable once it has been saved.  Retention can still be created off the back of an Opening Balance Valuation.

Gross Valuation – The Gross Valuation value for the specific valuation.  This will update the Net Valuation based on whether there are any retention values.

Retention – The Retention value based on the Gross Valuation and retention(s) from the deduction tab.  This is not editable on the valuation window but can be edited from the Deductions tab.

Net Valuation – The Net Valuation value for the specific valuation.  If the Net Valuation is entered, this will update the Retention and Gross values.

Discount % – Percentage main contractor discount percentage.  This will calculate the Discount Value based on the Gross value.  The Apply Discount first option, controls whether the discount is added before or after any deductions.

Discount Value – The main contractor discount value.  This will calculate the % value is entered.  The Apply Discount first option, controls whether the discount is added before or after any deductions.

Invoice Narrative – The Invoice Narrative appears on the Invoice.  This can be used to describe the work carried out so it appears on the Invoice.

Project Summary:

Application Gross – Total of the Application based on Project and Customer or the Application Group.  This is pulled from the related project.

Application Net – The Application net value based on the Project and Customer or the Application Group.  This is pulled from the related project.

Outstanding – The outstanding Gross amount remaining on the overall applications total Applications.  This is the Application Gross minus all associated Valuations.

Outstanding Ret – The outstanding Retentions remaining on the Application. This is Application Retentions minus the Valuations retentions plus retentions added from this valuation.

Outstanding Net – The outstanding Net amount remaining on the overall applications.  This is the Application Net minus all associated Valuations.

Note that info dots have been added to provide an explanation of how the figures have been calculated.

Valued to Date – Total Valuations to date including the current Valuation.

Nominal Analysis – This allows you to break down the Valuation into Multiple lines, either based on Project Header, Nominal, Narrative or Tax Code.  The total must equal the Net Valuation. If using Value Recognition on Invoice then this will be what is posted to the P&L and Invoice.

When saving the valuation, the Confirm Nominal Postings window will be displayed:

On Application value recognition, there are no project details displayed as the nominal movements are between balance sheet codes. These are not tied to the project.

If the details are incorrect you will need to click cancel and return to the Valuation screen and make the necessary changes. If all the details are OK, then click Confirm and the Allocate Valuation to Applications window.

This window allows you to link valuations to single or multiple applications. It can be used is situations where a previous application was not fully certified and the outstanding balance can be included in a later valuation.

You can manually add the allocation values into the Allocate This Time column. The allocation process can be automated and if you click the Auto Allocate then the valuation amount will be allocated to any application(s) with an outstanding value. Once populated the window will change to show remaining outstanding to be zero.

If you are releasing Retention alongside the Valuation, or that it’s a Retention Release.  The Retention Released is added to the Retention Released (This Time) column.

Any allocations that have been made can be cleared by using the Clear Allocation button. This will set all allocations to zero.

Once the allocations have been made, click Save and you will be returned to the Customer Applications Ledger. The Ledger will now show the added valuation.

1.3. Adding a Valuation using Outstanding Application Values

It is possible when raising a Valuation to view the outstanding, non-valued Application lines and use these to create the Valuation.  This is useful if you have a large amount of Nominal Analysis Lines on the Application or if you are creating the Application from a Construction Sales Order as it gives a link between the Sales Order Line, Application Line and Valuation Line.  You are however, not restricted to these two scenarios as it is also useful if your Valuation value is always the same as the Application Entered.

In Order to use the populate outstanding, you would add a Valuation as normal, using the Add Button on the Application Ledger, then Add Valuation.

On the Valuation Screen, there is then the Populate Outstanding button at the bottom.

When you click Populate Outstanding the following window will be displayed:

The top panel shows the outstanding Applications and has the allocations prepopulated. You are able to set line discounts and line retentions if you require. There is also the option to set a discount and retention based on the total value of the valuation. These are set in the lower half of the window. This function has been added so you do not have to apply discounts at individual line level.

You can either populate the discount amount, which will populate the Discount % or populate the discount % which will populate the Discount Value.

Retentions can also be set in the normal way.

The example below has both a discount and retentions applied for the overall value. Note that the total value of the discount and retention is spilt equally across all the outstanding applications:

Once you have populated all the relevant information then click Confirm and this will populate the Valuation Window:

You can then proceed with the valuation in the normal way.

1.4. Generating Invoices/Credit Notes

Once the valuation has been entered you are then able to generate the Invoice against the Customer.  There are a number of ways you can generated the Invoice, which can be controlled from the Sage user role.  As an example, you might want the Project Owner to enter the Application and Valuation but leave the Invoice creation to the Finance team.

Prior to Posting the Invoice, the Valuation must be printed.  From the Customer Application Ledger, highlighting the Valuation, click the Print Invoice Button:

Prior to the Invoice printing you will need to confirm the Invoice Date, which will default to today’s date.  Once confirmed an Invoice will be produced.

1.5. Post Invoice / Credit

After printing the Invoice (or Credit Note), the system will allow you to post the Invoice and Receipt.  This again can be done from the Customer Applications Ledger as outlined below.  From the Ledger you will only be able to Post the Invoice and Post the receipt as separate actions.

Alternatively, you can post Valuation from the Sage Menu.  This screen will allow you to either Post for a Single Document Number, Single Job or All Jobs.
Single Document Number: Select a specific Project and Document Reference to post
Single Projects: Select a specific Job and choose the Document you want to post
All Projects: Prompt display all Documents to choose what to post.

You can also Post the Invoice and Credit Notes, Payments & Receipts or Both at the same time.

The example below will take you through posting both and Invoice and Receipt using the All Jobs option.

You will display a list of all printed Invoices or Credit Notes allowing you to select the ones you would like to Post.

Once the Invoice or Credit has been posted you are then prompted to select the Bank the Receipt or Payment is being processed to/from.  If you were just posting the Receipt or Payment you would be prompted with this screen only.

1.6. Post Receipt

Once the Invoice or Credit has been posted you are then prompted to select the Bank the Receipt or Payment is being processed to/from.  If you were just posting the Receipt or Payment you would be prompted with this screen only.

1.7. Release Retentions

When it comes to releasing any retention held there is the ability to release this as part of another Valuation or as a Retention Release Valuation.

Retention Release included with a Valuation

The first option, is typical of the retention released as practical completion of a Project, where you are being certified for works completed and the first part of Retention is being released.

For this a final Application has been entered for the remaining amount outstanding on the Project.  Cumulatively the Project, as a Gross value of 20,000 and a Retention Value of 1,000.  Currently only 10,000 has been valued on the Project.

As part of the final certificate 10,000 has been valued and half the retention needs to be release totalling 500.

The Valuation is entered as a standard valuation, either adding it manually or using the populate outstanding option.  However, on the deduction tab you are able set amount being released.

Once you have added a Retention value to release you need to select which retentions you are releasing.  In this example the value being released is Works (Practical Completion) meaning I can only selected Retentions categorised as ‘Works (Practical Completion).

Pressing the ‘Select Retentions’ button will give you the available Retentions to release:

You will then be prompted to select retentions from the Retentions Ledger, which displays a list of retentions that have been created against the Applications for the Project.  As we releasing the retention against ‘Practical Completion’ this is already pre-filtered into the retentions type filter (this can be changed if required).

Check the box against the relevant retention that you want to release. The Released amount has been automatically populated:

Once you have selected all the retentions that require releasing check that the Total to Release equals the Total Retentions selected, then press the release button.

Once the retention has been selected for release, this will lock out the retentions release column:

Back on the Valuation Details tab the retention release is added as an additional line:  In this example we have the following:

Gross Valuation 10,000
Retention Held -500
Retentions Released 500
Net Valuation 10,000

Upon saving the valuation, you would get prompted to allocate the valuation, what differs here is that the Retention release is allocated separated as you can see from the example below:

The Valuation would then be printed and posted as a standard Valuation.

The results of the would leave just the Defects outstanding on the Project and the Valuation lines shows you that 500 Retetion was certified and 500 released.

Releasing Retentions Only

When it comes to the release of the defect retention or just releasing retentions without valuing anything, the release retention option can be used.  When looking at the Customer Applications Ledger look for the ‘Release Retention’ button.

Looking at the Project Totals for this Project, there is still 500 retention outstanding.

Clicking the Retention Release button, the system is going to prompt for a value to release.  In this instance we are going to release 250.  It will also ask at this point to specify which date you want to release the retention on.

The same a releasing a Retention via a valuation you are then prompted to select which retention are being released.

The system will then create a Retention Release Valuation, but is locked down to the Retention release only.  The user at this point can only amend the Invoice Narrative.

When saving the Retention release Valuation, you will be prompted to allocate the Retention release against the Application(s).

The Invoice can then be printed, posted and receipted as a standard valuation.

1.8. Reverse Valuations

If a Valuation has been created or even posted in error, this can be easily reversed and will create the corresponding Credit/Debit to correct it.

Within Customer Applications Ledger select the Project Number, highlight the required line from the Valuations transactions:

You will need to click the Reverse valuation button.

A message box will be displayed asking you to confirm the reversal.  This explains that if you have already posted the Invoice and/or Receipt to the Customer Ledger account, then it will create and post the reversing transactions (Credit Note and Payment).

Once confirming that you want to continue you will be prompted with the confirm nominal posting screen, here you can choose the date that the reversal will post to.

When you click Confirm this will create a reversal Valuation and if the original Valuation had an Invoice or Payment posted to the Sales Ledger, the system will create a Credit Note and Receipt

Note: These Credits do not need to be posted via the Post Valuations screen they are done automatically; you only need to allocate them.

1.9. Amend Allocations

If a valuation has been added against an Application incorrectly you may need to change the allocations.

If you need to change the valuation allocations set against an application(s) this can be done from the Customer Applications Ledger.

Select the valuation you wish to adjust the allocations on.

Click the Amend Allocations button.

The Allocate Valuations to Applications window will be displayed:

Change the allocations and click Save and the allocations will be saved.

1.10. Amend Allocations using Populate Outstanding

If a valuation has been added against an Application incorrectly you may need to change the allocations.

If you need to change the valuation allocations set against an application(s) this can be done from the Customer Applications Ledger, however if valuation was created by Populate Outstanding, the allocation amendment also must be through there.

Select the valuation you wish to adjust the allocations on.

Click the Amend Allocations button.

The Populate Outstanding screen appears.  This time the Valuation totals are greyed out, the only thing you can adjust are the certified values (Allocate This Time Column) on Application lines that have outstanding Value.

1.11. Opening Balance Transactions

Opening balance transactions are predominately used to show the opening applied and valued (certified) amounts when bringing over certified applications from another system.  Doing this also ensures you have the correct Opening Balance Retentions on Projects.

In this example, there have been 2 previous applications prior to moving over to Sicon Construction with a cumulative application value of 62,000, as the history of the individual applications isn’t required a single application for 62,000 has been entered.  This also creates any retentions they would have been outstanding.  When entering the Application, the Opening Balance tick box is required to be ticked.

When saving the Opening Balance Application, you are prompted, if you have Retention, to also create the Retention Opening Balance.  If you intend to release the retention value at a later date, you will need to Answer Yes to this question.

Note: if you answer ‘No’ by mistake you can delete and re-enter the Opening Balance Application.

The Opening Balance Application doesn’t not post anything to the nominal.  It is expected the Nominal Balances for Application are already included in the Sage Opening Balances.

As part of this Project, 62,000 had already been valued and posted to the Sales Ledger as an Invoice, thus leaving the outstanding balance of zero (excluding Retention) to be valued at a later date.  When adding the Valuation Certificate for this, we are using the ‘Opening Balance’ flag.  This tells the system that nothing is further needed with this Valuation, no nominal posts are made, and no Invoice or Receipts are created off the back of it.

The Application Ledger, shows the Opening Balance Application and Valuation, with the outstanding Retention Value.

The Enquiry Windows in Projects also reflect these opening balance transactions, so there should not be included in an Project Opening Balance transactions:

Project Enquiry:

Project Financial Enquiry:

Note: Project Financial Enquiry shows the Application and Invoice on Application recognition.
For Invoice recognition, you will see the Application, Valuation and Invoice with the actual value on the Invoice line.

1.12. Writing off Applications

There are a number of different methods of writing off Application values depending on the scenario.

Amending an Application

If you are reducing down the Application of a specific Application as the value is never to be received, you can edit an Application and reduce the gross Application value to be what is required.  As an example, we had an Application for 55000 and a Certified value of 50000 (including 5% retention).  The 5000 (4750 net) difference isn’t going to be received, so we can edit the Application and reduce the gross application value to 50,000.  At this point, you would also need to adjust the nominal analysis to match the new Application Value.

On saving the changes the Confirm Nominal Posting window will be displayed:

Credit (negative) Application

Another method of writing off an application is to enter a negative Application.  This method is ideal if the Valuation has already been Invoiced.  As an example, an Application has been added for -55,000 and been Valued and Invoiced.

A negative Application is then added to the Project for the amount that is being written off.  In this instance, it is a full reversal of 55,000.

The Confirm Nominal Postings window will again be displayed:

Showing the removal from the P & L Account and the corresponding credit to the Applications debtors account.

You would then need to Value this Application using the Credit Note option, which would also need to be printed and Posted to reverse off the Invoice Post to the Customer Ledger.  This has an impact of the cumulative values of the Project reducing the cumulative value applied for.

Again the Confirm Nominal Postings will be displayed:

Showing the credit to the Valuations Debtors and the debit from the Applications Debtors account.

Deleting an Application

Another option available if an Application was added incorrectly, is to delete the Application.  You are able to Delete applications if they have not been valued.  This will delete any Retentions created related to that Application.

The system will prompt prior to removing the Application.

Selecting ‘Yes’ will remove the Application. The Confirm nominal postings window will be displayed showing the debit from the application sales nominal and the credit to the Application Debtors account.  You can change the posting date here, to control when the nominal posting happen.

NOTE: Deleting an Application will consume an Application Reference.  In the example, P00046/AP0005 would be the next Application Number.

The deleted Application doesn’t appear in the Application Ledger, however as the history is in the nominal, this can still be reconciled against the Project.  You will see the (Deleted) text within the narrative.

1.13. Writing off Valuations

If a Valuation has been entered incorrectly, similar to writing off Application there are a number of scenarios and methods that can be used, which can be dependent on the current status of the Valuation.

Editing a Valuation

If a Valuation had been entered against an Application, and the Values or References where incorrect prior to posting the Invoice to the Sales Ledger, you can edit and amend the Valuation.  Highlighting and click Edit Allows you to do this.

Once the Valuation has been printed, certain values cannot be changed.  As an example, on printing the Invoice No. is reserved for when you post the Invoice and the Invoice date is set.  If the Invoice date is incorrect at this point, then you can delete the Valuation and re-enter, however the Invoice No. would be consumed.  You can still Edit the Valuation and change the values and re-print the Invoice at this point.

If you want to delete this you can highlight he valuation and click the ‘Delete’ button.  The system will prompt to confirm that you are going to delete the Valuation.

The Confirm Nominal Postings window will be displayed showing the debit from the Applications Debtors account and the credit to the Valuation Debtors account.  You can also change the date of deletion from this point too.

If you want to record and audit type trail of the Valuations that have been entered, rather than Deleting and re-entering, you can use the Reverse the Valuation using the Reverse Valuation Button.

The system will then create a Credit Note for the incorrectly posted Invoice.

You will be shown the Nominal Posting screen, where you can set the posting date, for the nominals and the credit note.

If the Invoice had been printed and post and you need to correct, you will always need to use the Reverse Valuation option.  In this instance the routine, will also post a credit note to the Customer Account.  If the Payment for the Invoice had also been Posted, this routine will also Post the Receipt.

1.14. Writing off Retentions

The Retention Value is created in the system based on the Application.  In some cases, the Valued amount on the Application, is going to be the total amount received for the application and thus the relevant retention.  In this instance, editing and reducing the Application and Retention Values will reduce the Retention amount held.

If the case is that you have a Valued Retention value that isn’t going to be received or you want to write off part of a Retention, then the following steps will remove the Retention from you Retentions Ledger.

On the Application Ledger, highlight the Retention that needs writing off, and click the ‘Write Off Retention’ button.

The system will prompt you to confirm that you want to write off the retention:

The system will then show you the nominal posting where you can set the write off date and will post the write off to the sales write off nominal set in Application Settings.

The system will then create an Opening Balance Valuation for the write off and allocate itself against its Application.

On the Project, you will see the Retention write off as its own line on the Project Enquiry.

1.15. Retention Adjustment

If you are looking to adjust the Retention value held on the Project without amending an existing Application you can Retention Adjustment Application.  This is essentially a zero value Application that is going to increase or decrease the Retention value and the Net Application.  You may need the Retention Adjustment for example if the Project initially was 5% Retention but has since change 3%.

In this example, an Application was sent for 10,000 with 5% Retention.  When the certificate came in it was values at 3%.  Rather than adjusting the original Application, we can enter a Retention Adjustment Application to reduce the Retention down to 3% for the Project.

We can see from the Application Ledger that we have only been able to allocate 9,500 of the Valuation against the Application.  You can use the ‘Add’ button to add in a Retention Adjustment.

The Retention Adjustment Application fields are locked down, if you are adjusting the Gross Application Value then you would need a standard Application to achieve this.  In this scenario the Gross Valuation is the same we are just adjusting the cumulative Retention and thus cumulative Net value.

The only thing we can change is on the deduction tab, here you can add in the value that you want to increase or decrease.

Once entered, back on the Application Values Tab you can see the impact this has on the Cumulative values on the Project.

Clicking Save, will prompt you got the nominal Posting, this is adjusting the numbers between the Retention Debtors and Applications Debtors (Application Recognition).

The Retention Adjustment is added to the Applications Ledger.

And you can see the results of this on the Project Totals.

2. Supplier Applications Ledger

A Supplier application for payment is a construction document that outlines what the subcontractor is due to be paid along with justification (this would vary on contract-by-contract basis).  The application for payment would generally include documentation outlining what services and materials were used on the Project.  The document would include materials used, unit prices and quantities of each and any Labour used.  This is generally supplied as backing documentation to the Sicon application.  The application itself provides both the owner (you as the Customer) and the contractor a method of controlling what items or materials have been provided by the contractor.

The Supplier Application Ledger Screen displays a list of current Application transactions against the selected Project.  When the screen loads you have to select a Project, which would display a list of all these transactions, defaulting into date order.  The screen then allows you to add or edit applications and valuations, release retention, print valuations as a certificate, post the invoice.  You can also reverse any valuations that have been entered incorrectly, amend the valuation allocations to applications and write off retention.

Further filtering can be done based on the transaction types by selecting from

• Applications
• Valuations
• Invoices & Credit Notes
• Payments & Receipts
• Retentions:

2.1. New Applications

To create a new Application, click the Add Application button from within the Application Ledger, which opens the New Incoming Application Window.

Account Details:

Project Number – Automatically populated from the main screen.

Supplier details – This is a lookup to the Sage Supplier list; a Supplier must be selected in order to continue with the Application.  Unlike the Customer Application this does not default from the Project and must be selected every time. This is due to the possibility that you may have multiple suppliers making applications against the project.

Project Manager – This will automatically populate from the Project (if populated) or can be selected from the drop-down list or Manually typed.

Project PO Number – Populated from the Project if set (this cannot be amended or entered here).

Reference Details:

Application Date – The date of the Application, will default to today’s date.

Expiry Date – A date that the Application will Expire.  For reporting purposes only,

Payment due Date – The date the contracted payment is due.  For reporting purposes and get be selected from the date lookup.

Reference – Combination of the Project number and Application number which is system generated if the auto application number generation (by Project) is turned on .  The numbering is per Supplier so multiple Subcontractors against the Project can have an Application number 1, 2 etc.

2nd Reference – Free text field to record an Internal or External Reference number

Query Flag – Flag that allow a user to set the Application on query.

Group – The ability to Group Applications together.  For example, where a Project, may have multiple Customers, or to Group Applications from a specific phase of a build.  The Cumulative figure will be calculated per Group.  By default, the group is set to ‘Default’.

Exchange Rate: Will only be displayed for any Supplier that is set up in anything other than the default currency of your system. The behaviour of the application will change also, as the suppliers default currency is displayed on the Gross and retention values:

Supplier in same currency as your system

Supplier where base currency differs:

Invoice / Ext App No – Used to record the Supplier Application Number or the Supplier Invoice number depending on the type of document that has been sent.

Default QS – This will automatically populate from the Project (if populated) or can be selected from the drop-down list or Manually typed. For details of where this is set please refer to the Maintenance Menu | New Project > Construction Tab within in the Sicon Project Help & User Guide.

Application Values Tab:

Cumulative Gross – Total Gross value for all applications for the Project and Supplier.  If using Groups, then it calculated the total figure for the Group.  If the Cumulative Gross is updated, this will update the Gross Application

Cumulative Retentions – Total Retention value for all applications for the Project and Supplier.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Cumulative Discount ­– Total Discount value for all applications for the Project and Supplier.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Cumulative Payable – The total amount payable for all applications for the Project and Supplier.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Cumulative Tax Value­ – Total Tax value for all applications for the Project and Supplier.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Gross Application – The total Gross value being applied for this Application.  If this is update, then the Cumulative Gross is updated.

Retentions Total – Total Retentions for the Application.  This is updated from the Deductions Tab.  Not editable

Value Payable – Total amount payable for this Application.  Gross Application – Retentions Total.  Not editable.

Tax Value – Total Tax value for the Application.  This is calculated from the Tax Value of the detail lines under Nominal Analysis.  Not editable

Discount % – Discount percentage for the main contractor that should be applied to the Application.  This can be applied before or after any other deductions (e.g. Retention).  This will populate the Discount Value Field.

Discount Value – Discount value for the main contractor that should be applied to the Application.  This can be applied before or after any other deductions.  This will populate the Discount % Field.

Risk Amount – This is a way to record on risk on the applied for value and is for reporting purposes only.  (e.g. If you are applying for 10,000 but realistically expecting the Valuation to be 8,000 the Risk Amount would be 2,000)

Nominal Analysis – This allows you to break down the Application into Multiple lines, either based on Project Header, Project Level, Nominal, Narrative or Tax Code.  The total must equal the Value Payable.  If there are Retentions being held on the Application these will be shown as negative lines on the Nominal Analysis.  This will allow you to split the Retention to different Tax codes, Project Headers or Phase, Stage, Activities if required.

Valuation Detail – This tab shows you current valuations against the Applications as well as the Cumulative.  The Cumulative will be based on the Project and Customer or the Group.

Accumulations Tab:

Accumulations – Displays all Applications related to the Project.  This is not dependant on the Group.

Note Tab – Note tab allows the recording of Notes against the Application.  These notes will appear on the Valuation Invoice when it is produced

Deductions Tab:

Retentions – The type of retentions you are retaining against the Application.  These are used to break down the types of Retention which will be taken off the whole Applications (or default through to the Valuation).  The different types of retention are used for filters on the Retention Release.  When adding a retention for the first time, these will add the retention lines to the Nominal Analysis section.  You can set defaults on the Project which will automatically add the retention percentages to the Application(s)

Retention % – Used to record the Retention Percentage on the Gross Application.  Will update the Retention Value

Retention Value – Used to record the Retention Value for the Application.  Will update the Retention %

NOTE: The retention amount on the Application will be generated and be available to be released at a later date.  Adjusting the Retentions value on the application will adjust the retention created.  In order to release retention please see Retention Release

Due Date – The due date of the Retention Release.  The due date is for reporting purposed and will be used on Retention filters.  The Due Date is also a compulsory field if a retention value has been added.

NOTE: The retention total is updated on the Applications Values Tab

CIS: This is only shown if the Supplier is marked as a CIS subcontractor within the system

Remaining net Value – This shows the total value of the Application less any deductions.  CIS will be calculated on Retention, once the retention is released.

Labour – The total value of the application that is applicable for deduction.  Depending on whether CIS is setup for nominal splits (labour and material based on nominal used) or Supplier splits where you can enter a percentage or Labour Value.  In the example the system is setup to use nominal splits so the Labour element is disabled

Other – Shows the value of non-Labour and non-Material lines on the Application

Material – The remaining amount on the Application is then classed as Material

CIS applicable value – Calculated field to show the value application for CIS deduction.

CIS rate – The CIS deductible rate for the Subcontractor selected on the Supplier Application

CIS due – The total amount of CIS due calculated from the CIS applicable value and the CIS rate.

Memo:

Memo – Adding a memo to the memos tab records any notes made against the Application with a Date, Time and the User that made the note.

Analysis:

Analysis Codes – The Analysis Code available on the Application are configured within the Maintain Invoice and Order Analysis Codes within Sage.

The Analysis Code, first need to be setup within the Maintain Analysis Code in Accounting System Manager

They can then be added to the Maintain Analysis Codes in the POP Maintenance Menu

When you click Save the Confirm Nominal Postings window will be displayed showing the debits to the P & L Accounts that have been specified against the project headers and the credits for the overall application to the Applications Creditors account and the two retention accounts and Purchase discount.

2.2. Adding a Valuation and Allocation

The Valuation is the agreed amount the Supplier is going to be paid and the Certificate is generated directly from the Valuation.

You can add a Valuation by clicking the Add Valuation button, If there were any existing Valuations for the Application they would be shown in the Application Valuation Transactions box.

When you click on Add the Valuation the Valuation Window is shown.

Project Number – The Project number is automatically populated from the Customer Application Ledger This is not editable.

Supplier details – This is a lookup to the Sage Supplier list; a Supplier must be selected in order to continue with the Application.  Unlike the Customer Application this does not default from the Project and must be selected every time. This is due to the possibility that you may have multiple suppliers making applications against the project.

Project Description – Description of the Project.  This is not editable

Project PO Number – The Project PO Number if stored on the Project.  This is not editable

Invoice Number – The Invoice associated to the Valuation Invoice.  This is a required field

Invoice No. – This will be generated when the Valuation Invoice / certificate is printed

QS/Employee – This is the name of the employee carrying out the valuation and can be manually entered or selected from the drop down if the employee has been entered in Sicon Projects.

For more details on entering employees please refer to the Maintenance Menu | Maintain Employees section within the Sicon Projects Help & User Guide.

Valuation Date – The date of the Valuation, defaulting to today’s date.

Due Date – A date field when the Payment is expected, defaulting to today date.  This is for reporting purposes only.

Invoice Date – The date of the Invoice.  This is updated when the Invoice is printed

Valuation Type – A selection of Invoice or Credit Note, depending on the Type of Valuation

Opening Balance – This sets the Valuation as an Opening Balance.  An Opening Balance Valuation doesn’t create an Invoice, or update the Nominal (apart from reversing the Application).  The Valuation will automatically be marked as Paid and won’t be editable once it has been saved.  Retention can still be created off the back of an Opening Balance Valuation.

Gross Valuation – The Gross Valuation value for the specific valuation.  This will update the Net Valuation based on whether there are any retention values.

Retention – The Retention value based on the Gross Valuation and retention(s) from the deduction tab.  This is not editable.

Net Valuation – The Net Valuation value for the specific valuation.  If the Net Valuation is entered, this will update the Retention and Gross values.

Discount % – Percentage main contractor discount percentage.  This will calculate the Discount Value based on the Gross value.  The Apply Discount first option, controls whether the discount is added before or after any deductions.

Discount Value – The main contractor discount value.  This will calculate the % value is entered.  The Apply Discount first option, controls whether the discount is added before or after any deductions.

QS Notes – The Invoice Narrative based on any comments added when entering the Valuation and will appear on the Invoice.  This can be used to describe the work carried out so it appears on the Invoice.

QS Reference – This can be used for referencing any paperwork that was used during the valuation process, such as the documents used on site to evaluate the work being valued.

Project Summary

Application Gross – Total of the Application based on Project and Customer or the Application Group.  This is pulled from the related project.

Application Net – The Application net value based on the Project and Customer or the Application Group.  This is pulled from the related project.

Outstanding – The outstanding Gross amount remaining on the overall applications total Applications.  This is the Application Gross minus all associated Valuations.

Outstanding Ret – The outstanding Retentions remaining on the Application. This is Application Retentions minus the Valuations retentions plus retentions added from this valuation.

Outstanding Net – The outstanding Net amount remaining on the overall applications.  This is the Application Net minus all associated Valuations.

Note that info dots have been added to provide an explanation of how the figures have been calculated.

Valued to Date – Total Valuations to date including the current Valuation

Nominal Analysis – This allows you to break down the Application into Multiple lines, either based on Project Header, Nominal, Narrative or Tax Code.  The total must equal the Gross Application.

Then saving the valuation, the Confirm Nominal Postings window will be displayed:

There are no project details displayed as the nominal movements are between balance sheet codes. These are not tied to the project. The debit appearing on the Applications Creditors account and credit to the Valuation Creditors account.

If the details are incorrect you will need to click cancel and return to the Valuation screen and make the necessary changes. If all the details are OK, then click Confirm and the Allocate Valuation to Applications window.

This window allows you to link valuations to single or multiple applications. It can be used is situations where a previous application was not fully certified and the outstanding balance can be included in a later valuation.

You can manually add the allocation values into the Allocate This Time column. The allocation process can be automated and if you click the Auto Allocate then the valuation amount will be allocated to any application(s) with an outstanding value. Once populated the window will change to show remaining outstanding to be zero.

Any allocations that have been made can be cleared by using the Clear Allocation button. This will set all allocations to zero.

Once the allocations have been made, click Save and you will be returned to the Customer Applications Ledger. The Ledger will now show the added valuation.

2.3. Generate Certificate

Once the valuation has been entered you are then able to generate the Certificate for the Supplier.  There are a number of ways you can generated the Certificate, which can be controlled from the Sage user role.  As an example you might want the Project Owner to enter the Application and Valuation but leave the Invoice creation to the Finance team.

Prior to Posting the Invoice, the Certificate must be printed.  From the Supplier Application Ledger, highlighting the Valuation, click the Print Certificate Button:

Prior to the Certificate printing you will need to confirm the Application the Certificate is for. You are also able to add additional information:

• QS Reference
• Approved Date – This is used if you have an approval process for the valuation of the application.
• Notes which are additional to those that appear on the valuation

If no additional details have been added when you click Print the following dialogue box will be displayed:

To warn you that no QS reference has been set.

Click Yes if you wish to proceed. If you click No you will be returned to the Print Application Certificate screen and you can add the details as required.

On clicking Yes to Print the Application certificate the following Certificate will be produced. A dialogue box will be displayed to confirm that the printing process is complete:

Once confirmed a Certificate will be produced.

The highlighted panel shows where the information entered on the Print Application certificate window will be displayed.

2.4. Post Invoice / Credit Note

After printing the Certificate (or Credit Note), the system will allow you to post the Invoice and Receipt.  This again can be done from the Supplier Applications Ledger as outlined below. From the Ledger you will only be able to Post the Invoice.

Alternatively, you can post Valuation from the Sage Menu.  This screen will allow you to either Post for a Single Document Number, Single Job or All Jobs.
Single Document Number: Select a specific Project and Document Reference to post
Single Projects: Select a specific Job and choose the Document you want to post
All Projects: Prompt display all Documents to choose what to post.

You can also Post the Invoice and Credit Notes, Payments & Receipts or Both at the same time.

The example below will take you through posting Invoice using the All Projects option.

You will display a list of all printed Invoices or Credit Notes allowing you to select the ones you would like to Post.

Once the Invoice or Credit has been posted you will be displayed a dialogue box saying the Post is complete. This and the Post valuations window will be closed when you click OK

2.5. Release Retentions

When it comes to releasing any retention held there is the ability to release this as part of another application or as a Retention Release Application.

Retention Release included with an Application

The first option, is typical of the retention release as practical completion.

In order to release Retention as part of an Application, you first need to add an Application.  An Application has been added, which also included further retention, but this time the retention being held is only against the Defects, so a total of 2.5%.

This Application would then be certified.

A Valuation would be added as a standard Valuation, however on the deductions tab you would add a value in the Retentions Release filed:

Once, that has been added, you need to select a Retention previously created to release by pressing the ‘Select Retentions’ button.

You will then be prompted to select retentions from the Retentions Ledger, which displays a list of retentions that have been created against the Applications for the Project.  As we releasing the retention against ‘Practical Completion’ this is already pre-filtered into the retentions type filter (this can be changed if required).

Check the box against the relevant retention that you want to release. The Released amount has been automatically populated:

Once you have selected all the retentions that require releasing, press the release button.

Once the retention has been selected for release, this will add a Retention Release line to the Valuation.  For this example, we have the following:

Gross Valuation: –5000
Retentions Held: -125
Retentions Release: -125
Net Valuation: 10,250

You would then post the Valuation Invoice with the Retention Release.

The Result of this would leave both Application with just Retentions waiting to be release for Defects on both Application 1 and 2.

Releasing Retentions Only

When it comes to the release of the defect retention or just releasing retentions without an application, the release retention option can be used.  When looking at the Supplier Applications Ledger screen not all applications will be show so you may have to change the Status filter to All or Retentions Only.  The default filter will only show Open Applications.

On this Project there is 750 remaining on the Retention which I want to release.  After click the Release Retention button enter the amount that is being released (this again may have already been agreed between the QS or PM)

The same a releasing a Retention via Application you are then prompted to select which retention are being released.  In this instance I am selecting more than one Retention to release ensuring the Total to Release value is the same as the Total Retentions Selected.

The system will then create a Retention Release Application and corresponding Valuation.

The Invoice can then be printed, posted and receipted as a standard valuation.

2.6. Reverse Valuations

If a Valuation has been created or even posted in error, this can be easily reversed and will create the corresponding Credit/Debit to correct it.

Within the Supplier Applications Ledger select the Project Number, highlight the required line from the Valuations transactions:

You will need to click the Reverse valuation button

A message box will be displayed asking you to confirm the reversal.  This explains that if you have already posted the Invoice to the Supplier Ledger account, then it will create and post the reversing transactions (Credit Note and Payment)

Once confirming that you want to continue another prompt will appear to confirm the date of the reversal.  Change the Date to reflect the original valuation invoice, or the date you require the reversal to be posted – click OK.

The Confirm Nominal Postings window will be displayed showing the movement between the Application and Valuation Debtor Nominal accounts:

When you click Confirm

This will create a Credit Note and Payment where applicable.  If creating a posting

Note: These Credits do not need to be posted via the Post Valuations screen they are done automatically; you only need to allocate them.

2.7. Amend Allocations

If a valuation has been added with the incorrect figures you may need to change the allocations

If you need to change the valuation allocations set against an application(s) this can be done from the Supplier Applications Ledger.

Select the valuation you wish to adjust the allocations on.

Click the Amend Allocations button.

The Allocate Valuations to Applications window will be displayed:

Change the allocations and click Save and the allocations will be saved.

2.8. Opening Balance Valuations

Opening balance valuations are predominately used to show the opening valued amount when bringing over certified applications from another system.  Doing this also ensures you have the correct Opening Balance Retentions on Projects

In this example, there have been 2 previous applications prior to moving over to Sicon Construction with a cumulative application value of 62,000, as the history of the individual applications isn’t required a single application for 62,000 has been entered.  This also creates any retentions they would have been outstanding.

As part of this Project, 62,000 had already been valued and posted to the Purchase Ledger as an Invoice, thus leaving the outstanding balance of zero (including Retention) to be valued at a later date.  When adding the Valuation Certificate for this, we are using the ‘Opening Balance’ flag.  This tells the system that nothing is further needed with this Valuation, no nominal posts are made, and no Invoice or Receipts are created off the back of it.

2.9. Writing Off Applications

There are a number of different methods of writing off Application values depending on the scenario

If you are reducing down the Application of a specific Application as the value is never to be received, you can edit an Application and reduce the gross Application value to be what is required.  As an example, we had an Application for 15,000 and a Certified value of 5,000.  The 10,000 difference isn’t going to be received, so we can edit the Application and reduce the gross application value to 5,000.  At this point, you would also need to adjust the nominal analysis to match the new Application Value

If this reduced the Application to the amount that has Valued, then the Application Status, is either moved to ‘Retentions Only’ if there are outstanding Retentions or Paid if not.

On saving the changes the Confirm Nominal Posting window will be displayed:

Another method of writing off an application is to enter a negative Application.  This method is ideal if the Valuation has already been Invoiced.  As an example, an Application has been added for -55,000 and been Valued and Invoiced.

A negative Application is then added to the Project for the amount that is being written off.  In this instance, it is a full reversal of 55,000.

The Confirm Nominal Postings window will again be displayed:

Showing the removal from the P & L Account and the corresponding credit to the Applications creditors account.

You would then need to Value this Application using the Credit Note option, which would also need to be printed and Posted to reverse off the Invoice Post to the Customer Ledger.  This has an impact of the cumulative values of the Project reducing the cumulative value applied for.

Again the Confirm Nominal Postings will be displayed:

Showing the credit to the Valuations Creditors and the debit from the Applications Creditors account.

Another option available if an Application was added incorrectly, is to delete the Application.  You are able to Delete applications if they have not been valued.  This will delete any Retentions created related to that Application.

The system will prompt prior to removing the Application.

Selecting ‘Yes’ will remove the Application. The Confirm Nominal Postings window will be displayed showing the credit from the application purchase  nominal and the debit to the Application Creditors account:

NOTE: Deleting an Application will consume an Application Reference.  In the example, P00046/AP0005 would be the next Application Number.

2.10. Writing Off Valuations

If a Valuation has been entered incorrectly, similar to writing off Application there are a number of scenarios and methods that can be used, which can be dependent on the current status of the Valuation.

If a Valuation had been entered against an Application, and the Values or References where incorrect prior to posting the Invoice to the Sales Ledger, you can edit and amend the Valuation.  Highlighting and click Edit Allows you to do this.

Once the Valuation has been printed, certain values cannot be changed.  As an example, on printing the Invoice No. is reserved for when you post the Invoice, and the Invoice date is set.  If the Invoice date is incorrect at this point, then you can delete the Valuation and re-enter, however the Invoice No. would be consumed.  You can still Edit the Valuation and change the values and re-print the Invoice at this point.

The Confirm Nominal Postings window will be displayed showing the credit to the Applications Creditors account and the debit from the Valuation Creditors account

If you want to record and audit type trail of the Valuations that have been entered, rather than Deleting and re-entering, you can use the Reverse the Valuation using the Reverse Valuation Button.

The system will then create a Credit Note for the incorrectly posted Invoice.

You will be asked to confirm the date of the reversal, this will post the credit note back to whatever date you have entered so keeping your periods in balance.

The Confirm Nominal Postings window will be displayed:

If the Invoice had been printed and post and you need to correct, you will always need to use the Reverse Valuation option.  In this instance the routine, will also post a credit note to the Customer Account.  If the Payment for the Invoice had also been Posted, this routine will also Post the Receipt.

2.11. Writing off Retentions Based on Applications

The Retention Value is created in the system based on the Application.  In some cases, the Valued amount on the Application, is going to be the total amount received for the application and thus the relevant retention.  In this instance, editing and reducing the Application and Retention Values will reduce the Retention amount held.

If the case is that you have a Valued Retention value that isn’t going to be received or you want to write off part of a Retention, then the following steps will remove the Retention from you Retentions Ledger.

The first step is actually releasing the Retention, using the Release Retentions button on the Supplier Application.

You then want to add the Retention amount you want to write off.

Once you have entered the amount you want to write off then you are shown the Retention Ledger and the Retention values currently associated to the Project.

Select the Retention you want to write off and adjust the Released Amount where applicable and select Release.

This will create a Retention Release Application with an associated Valuation.

You will then want to Edit the Associated Valuation, mark the Valuation as an Opening Balance and if required, make a comment on the Narrative that this is a Retention Write Off.  As the Valuation and Associated Retentions are now mark as opening balance the don’t have an impact on the Application apart from reducing the balance on the Project.

3. Post Nominal Transactions for Applications and Valuations

3.1. Customer Application, Valuation and Invoice Process

The accounts where the nominal postings are specified in Sicon Construction>Applications>Applications settings, see Section on Application Settings.

The table below shows the movements for a customer application where revenue recognition is based on the Application.

The value of the Application is for £10,000 with 5% retentions (equally split across Practical Completion and Defects) and a 5% Discount. Note that for Application Sales, the P & L Account is derived from what has been set against the Project Header or specified on the Application itself.

Where revenue recognition is based on Invoice being posted the table below, Note that for Application Sales will be a balance sheet code. The application sales account is derived from that set is the Application settings table:

3.2. Customer Corrections

Where amendments or changes are needed there will be a change in the nominal postings, and these are detailed in the following sections.

Amending an application

When an application is amended there will be a reversal of the initial postings. The example below illustrates an application that was initially raised for £10,000 but was amended to £11,000

The application amendment results is a reversal of the initial posting and then the new posting with the amended values. Both of these happen as a result of the amendment

Deleting an application

The original posting will be reversed.

Writing off an Application

In the example below an initial application was made for £7,500 and has been valued at £6,500. The remaining £1,000 needs to be written off, this follows the process laid out in sections 1.10 and 2.10.

When the Application is amended there is an adjustment posted for the value to be written off

The nominal postings will look like the below:

Amending a valuation

This follows the pattern for amending an application. An application has been raised for £68,000 and has been valued at £62,500. The valuation should have been recorded as £63,500.

Writing off a valuation

A valuation can be written off by:

1. Amending the value, as detailed above
2. When the invoice has been posted
   1. This either means the valuation will be amended and the invoice re-printed or deleting the valuation. Where the valuation is amended the process will be the same as for Amending a valuation. If a valuation is deleted, then there will be no movements as the transactions will be removed from the system
3. Reversing a valuation
   1. If the valuation has not had any further actions against it the Reverse valuation option will merely reverse the postings from the initial valuation

2. If the Valuation has had the invoice printed this will be the same as Reversing a valuation as there are no nominal movements associated with printing the invoice

3. If the Invoice has been posted then there will be additional postings that relate to the movements between the Debtors Control Account and the P & L Account, where the reversal of the Valuation will result in a reversal of the postings, an example is shown below:

3.3. Supplier Application, Valuation, and Invoice Process

The accounts where the nominal postings are specified in Sicon Construction>Applications>Applications settings, see Section on Application Settings.

The table below shows the movements for a Supplier application where revenue recognition is based on the Application.

The value of the Application is for £10,000 with 5% retentions (equally split across Practical Completion and Defects) and a 5% Discount. Note that for Application Sales, the P & L Account is derived from what has been set against the Project Header or specified on the Application itself.

Where revenue recognition is based on Invoice being posted the table below, Note that for Application Sales will be a balance sheet code. The application sales account is derived from that set is the Application settings table:

3.4. Supplier Corrections

Where amendments or changes are needed there will be a change in the nominal postings, and these are detailed in the following sections.

Amending an application

When an application is amended there will be a reversal of the initial postings. The example below illustrates an application that was initially raised for £10,000 but was amended to £11,000

The application amendment results is a reversal of the initial posting and then the new posting with the amended values. Both of these happen as a result of the amendment

Deleting an application

The original posting will be reversed.

Writing off an Application

In the example below an initial application was made for £15,000 and has been valued at £14,000. The remaining £1,000 needs to be written off, this follows the process laid out in Supplier Applications Ledger | Writing off Valuations and in Supplier Applications | Writing off Valuations sections.

When the Application is amended there is an adjustment posted for the value to be written off

The nominal postings will look like the below:

Amending a valuation

This follows the pattern for amending an application. An application has been raised for £68,000 and has been valued at £62,500. The valuation should have been recorded as £63,500.

Writing off a valuation

A valuation can be written off by:

1. Amending the value, as detailed above
2. When the invoice has been posted
   1. This either means the valuation will be amended and the invoice re-printed or deleting the valuation. Where the valuation is amended the process will be the same as for Amending a valuation. If a valuation is deleted, then there will be no movements as the transactions will be removed from the system
3. Reversing a valuation
   1. If the valuation has not had any further actions against it the Reverse valuation option will merely reverse the postings from the initial valuation

2. If the Valuation has had the invoice printed this will be the same as Reversing a valuation as there are no nominal movements associated with printing the invoice

3. If the Invoice has been posted then there will be additional postings that relate to the movements between the Debtors Control Account and the P & L Account, where the reversal of the Valuation will result in a reversal of the postings, an example is shown below:

4. Construction Sales Order

Construction Sales orders are used to outline what is going to be delivered to a Customer, that you draw down on via applications to them for payment. In the Sales Order you could specify a number of different things that are going to be delivered. as an agreement to what is being delivered. You can then draw down on the Sales Order when you (as the contractor) applies for Payment for works completed.

You are able to create Quotes which can then be converted to Orders

From the Construction menu select Sales Orders.

All existing orders are displayed in the Construction Sales Order List, an example is shown below:

From here you are able to:

1. Add a new order
2. Amend an existing order
3. Create Applications
4. Create a quote

The typical process would be

If quoting

1. Raise a new quote
2. Amend quote based on any required changes
3. Convert Quote to Order

If not using quotes

1. Create an order

4.1. Project Settings

In order to be able to raise Construction Sales Orders the method of billing on the project needs to be set correctly. This is configured on the Construction tab when creating or amending the project:

When amending or creating a project you go to the Construction tab and there is a section called Billing Options

You will need to select Applications as the Billing Method. If this is not selected, then the following warning message will be displayed when trying to raise a Construction Sales Order:

You will be unable to proceed until you have either selected another project or amended the project initially chosen.

4.2. Quotes

Creating a new Quote

In Order to create a new Construction Sales Quote, you can click on the ‘New Quote’ button on the Construction Sales Order List view or from the Menu.

This opens the New Construction Sales Quote Window where you first need to decide if you wish to create a new project on Conversion of the Quote to a Sales Order (which is the default and is system set) or link to an existing project (you will need to untick the Create Project on Conversion. Select the Project from the drop-down list and Phase, Stage and Activity if you are using these within Projects that is associated with the Construction Sales Quote.

Just like a Sage Sales Quote, you need to select the Customer that you intend to raise the Construction Sales Quote for, from the Code or Short Name drop down. If you are linking to an existing project and the project has a customer set against it this will be automatically populated.

If your project has not be set to use the billing method of Applications, then you will see the message below:

This will need to be amended on the project as described in Project Settings Section of this Help & User Guide.

You will also need to specify a Project header in the Default Project header drop down, unless you have a default set in Projects for further details see the Projects Help and user Guide, Utilities Menu | Project Costing | Default Tab

Defaults:

Quote Details

Quote number – Will be automatically generated on saving the Quote

Quote Status – Is default to Live and is linked to the Quote Status drop down to the right. This is used to manage, and filter saved quotes.

Document Date – This is the date that the quote was raised. It defaults to today’s date but can be amended.

Promised Delivery date – This is the date that the provisional date that the work is to be delivered by and is for reporting purposes.

PO Number – Is linked to the PO number saved against the project. If a number has been entered against the project this will be automatically populated.

Quote Status – This will be set to live on entry and can be changed but this will be detailed in Amending a quote

Probability – Allows you to record a percentage of the likelihood of getting the work (being successfully converted to a Sales Order). This is for reporting purposes.

Estimated Order date – Allows you to record when you expect to receive a confirmed order.

Default VAT Code – Allows you to set the required VAT code from the order.

History

This tab records a history of changes and action that have happened on the Subcontractor PO as an Audit Trail.

Once all the Header details are recorded on the Subcontract Purchase Order, you can start to populate the Details lines for what you are purchasing.  This is achieved by pressing the add items button on the Order Details Tab.

You can now enter the lines that will make up the quote. You can either add lines or copy an existing order to prepopulate items.

You can add lines as Standard Items (Stock) or Free Text. You are also able to add comment lines. In the example below a free text item has been added.

History

This tab records a history of changes and action that have happened on the Construction Sales Quote as an Audit Trail.

Once all the Header details are recorded on the Construction Sales Quote, you can start to populate the Details lines for what you are quoting for.  This is achieved by pressing the add items button on the Order Details Tab.

Sales Quote Line

You can add lines as Standard Items (Stock) or Free Text. You are also able to add comment lines. In the example below a free text item has been added.

Project: The selected Project from the Header of the Sales Quote.  This section can be used to change the Phase, Stage and/or Activity on the Sales Order Line.  The Phase, Stage, Activity selection is shown by selecting the folder icon next to the Project.

Project Header: Select the Project Header from the drop down for the required project analysis on the line.

Item Type: Construction Sales Quotes allow Standard Items, Free Text items or comment line only.

Standard Items: These are items that you hold as stock. The item required is chosen by either searching by code or by name. You will also need to select the warehouse you want to supply the items from

Stock option enabled Quantity Selection which is similar to Standard Sage.  When raising an Application against a stock line, you would be expecting to Raise that against the quantity supplied.

Free Text Type: There are types of Free Text items that can be used, either Measured Works or Stock. 

Stock option enabled Quantity Selection which is similar to Standard Sage.  When raising an Application against a stock line, you would be expecting to Raise that against the quantity supplied.

The Measured works option is a set Unit Price without a Quantity.  For example, to delivery £9000 worth of work.  Applications raised against measured works are raised as a value or percentage complete.

Item Description: Free Text where detail can be added for the Purchase Order Line.

Quantity: If using the Free Text Type Stock, you would need to set the quantity here, defaults to 1.

Unit Price: Used for both Stock and Measured work for the unit price of the line

Tax Code: VAT/Tax code for the line.

Tax Value: Calculated Tax Value.  This field cannot be edited.

Line Total: Total Value of the Sales Quote line

Nominal Analysis: Defaulting from the Project Header set on the Line, can be overwritten if required.

Dates: Each line can have a specified delivery date, which defaults from the delivery date set on the Sales Order Header.

Once you save the line, this is then added to the Construction Sales Quote and the details are stored on the main Sales Quote Window.

This view for the detail lines, has two options, Lines Details and Margin:

Line Details:

No: Line number

Description: The description as per the details Lines

Project Header: Project Header selected

Project Level: Project Level as per the line.

Order Quantity: Total Quantity order for Stock lines only.

Unit Value: Unit Value or Stock or Measured Works

Line Total: Total Value of the line

Tax Code: Tax code used on the line.

Margin

Project Header: Project Header selected

Project Level: Project Level as per the line.

Order Quantity: Total Quantity order for Stock lines only.

Totals Revenue: Total value of Sales Quote Line

Total Cost: Total cost value of the Sales Quote Order

Margin: The difference between total revenue and total cost as a value

Margin %: The difference between total revenue and total cost as a %

Invoiced Value: Total Invoiced Value for the Certified Line.

In Order to manage the lines on the Construction Sales Quote you can Add Items, Edit Items and Delete Items from the bottom of the detail lines grid.  You can also re-organise the Sales Quote lines using the Move Up and Move Down buttons

You can also print the quote using the Print Quote Button:

Finally, if you need to cancel the Sales Quote you can use the Cancel Quote button.  This will prompt you prior to Cancelling, where you have to agree to continue:

Clicking yes will cancel the quote. It will still be visible in the list of quotes but when you try and amend it the Status will be shown as cancelled and you will only be able to view the items in the quote line list:

Amending a quote

If you need to amend a quote the select Amend Quote from the menu; Sicon Construction>Sales orders>Quotations>Amend Quote the following window will be displayed:

You are able to search by:

Project: Will return all quotes associated with the project entered

Customer: Will return all quotes associated with the customer entered

Quote Number: Will return the specific quote for the number entered

Or alternatively click the Display button with no search criteria entered and all quotes will be returned.

Select the Quote you wish to amend and click the Amend Button. This will open the Sales Quote window and you can then add or amend items as well as changing the Status.

The status can be set to:

• Live
• Completed
• Lost

These can be selected from the drop-down menu:

4.3. Convert a Quote to a Sales Order

When the quote has been accepted by the client and you need to convert it into a live Sales Order this is easily done using the Convert to a Sales order functionality. This is selected from the menu options Sicon Construction>Sales Order>Quotations>Convert Quote to Sales Order

The following window will be displayed:

You will need to search for the Quote you wish to convert to a live Sales Order. This can be done in one of three ways:

1. Enter the Project the quote is linked to
2. Enter the Customer Account
3. Or entering the Quote Number

Or alternatively click the Display button with no criteria entered and all quotes will be displayed.

The example below has the Project Number entered:

You highlight the quote and click the Convert to Order button. You will be asked to confirm if you wish to convert the quote to a Sales order, as shown below:

Click Yes in order to continue.

A message will be displayed confirming the Quote has been successfully converted to a Construction Sales Order:

Note that the number formatting is set in Construction Sales Order settings, see Section 9.3.

Click OK and the message will disappear.

Note that the Quote will now be removed from the list as it has been successfully converted. The new sales order can be viewed in the Sales Order List:

An example list is shown below:

Note that the Quote is also displayed but has been marked as complete.

4.4. Orders

In Order to create a new Sales Order, you can click on the ‘New Order’ button on the Sales Order List view or from the Menu.

This opens the New Sales Order Window where you fist need to select the Project from the drop-down list and Phase, Stage and Activity if you are using these within Projects that is associated with the Sales.

Just like a Sage Sales Order, you need to select the Customer that you intend to raise the Sales Order for, from the Customer Code or Short Name drop down.

As this is a Sales Order the project will need to have been set for If your project has not be set to use the billing method of Applications then you will see the message below:

This will need to be amended on the project as described in Section 6 – Project Settings

You will also need to specify a Project header in the Default Project header drop down, unless you have a default set in Projects for further details see the Projects Help and user Guide, Utilities Menu | Project Costing | Defaults Tab – Defaults:

Order Details

Project: The Project required for this Sales Order.  Construction Sales Orders only allow one Project per Order.  You will also be prompted for a Phase, Stage and/or Activity depending on the Project settings.  Phase, Stage and/or Activity can be changed on the detail line if the Sales Order covers multiple Phases, Stage or Activities.

Code: Selection of Customer as per Sage.

Default Project Header: Can set a default Project Header for the Order.  This can be overwritten on the line.

Order Number: This is set initially to TBA is auto numbering is turned on.  Will be a Free Text field is auto numbering is turned off.

Order Status: Either Live, Cancelled or Complete.

Document Date: Date of the Purchase Order. Defaults to today’s date.

Promised Delivery Date: Promised Delivery Date of the Sales Order. This can also be set on a line-by-line basis.

Project PO Number: If there is a Customer Purchase Order store on the Project, this is pulled through from the Project.

If using a Project that has a Project Address, when selecting the Project, you may be prompted to select a delivery Address.  This would give you the option for the Default Company Address or the Default Project Address.

The example below is using an address that has been set as the default against the project

Where you have multiple Project Address you can select from this list using the Select Project Address button.

The selected address is then populated on the Delivery & Analysis Tab:

Delivery & Analysis

Delivery Address: Populated from the Project Selection prompt if using Project Address. Can be changed using the Project Selection or can be typed in Free Text.

Analysis Codes: Sage SOP Analysis codes are used on this screen if further SOP Analysis is required.

History

This tab records a history of changes and action that have happened on the Sales Order as an Audit Trail.

Once all the Header details are recorded on the Sales Order, you can start to populate the Details lines for what you are purchasing.  This is achieved by pressing the add items button on the Order Details Tab.

Sales Order Line

Project: The selected Project from the Header of the Sales Quote.  This section can be used to change the Phase, Stage and/or Activity on the Sales Order Line.  The Phase, Stage, Activity selection is shown by selecting the folder icon next to the Project.

Project Header: Select the Project Header from the drop down for the required project analysis on the line.

Item Type: Construction Sales Quotes allow Standard Items, Free Text items or comment line only.

Standard Items: These are items that you hold as stock. The item required is chosen by either searching by code or by name. You will also need to select the warehouse you want to supply the items from

Stock option enabled Quantity Selection which is similar to Standard Sage.  When raising an Application against a stock line, you would be expecting to Raise that against the quantity supplied.

Free Text Type: There are types of Free Text items that can be used, either Measured Works or Stock. 

Stock option enabled Quantity Selection which is similar to Standard Sage.  When raising an Application against a stock line, you would be expecting to Raise that against the quantity supplied.

The Measured works option is a set Unit Price without a Quantity.  For example, to delivery £9000 worth of work.  Applications raised against measured works are raised as a value or percentage complete.

Item Description: Free Text where detail can be added for the Purchase Order Line.

Quantity: If using the Free Text Type Stock, you would need to set the quantity here, defaults to 1.

Unit Price: Used for both Stock and Measured work for the unit price of the line

Tax Code: VAT/Tax code for the line.

Tax Value: Calculated Tax Value.  This field cannot be edited.

Line Total: Total Value of the Sales Quote line

Nominal Analysis: Defaulting from the Project Header set on the Line, can be overwritten if required.

Dates: Each line can have a specified delivery date, which defaults from the delivery date set on the Sales Order Header.

Once you save the line, this is then added to the Construction Sales Quote and the details are stored on the main Sales Quote Window.

This view for the detail lines, had 4 options, Lines Details, Line Quantities, Margin and Application Details:

Line Details:

No: Line number

Description: The description as per the details Lines

Project Header: Project Header selected

Project Level: Project Level as per the line.

Order Quantity: Total Quantity order for Stock lines only.

Unit Value: Unit Value or Stock or Measured Works

Line Total: Total Value of the line

Tax Code: Tax code used on the line.

Line Quantities:

Order Quantity – Shows the total amount ordered for the Sales Order

Free Stock – Shows the total quantity of the stock item is currently available in the selected warehouse that is available to be allocated against the order

Allocated – Shows the quantity of free stock has been allocated against the order

Despatched – Shows the quantity much stock has been despatched against the order

% Complete – shows the % complete of quantity despatched

Margin

This shows the profitability of the order

Project Header: Project Header selected

Project Level: Project Level as per the line.

Order Quantity: Total Quantity order for Stock lines only.

Totals Revenue: Total value of Sales Quote Line

Total Cost: Total cost value of the Sales Quote Order

Margin: The difference between total revenue and total cost as a value

Margin %: The difference between total revenue and total cost as a %

Invoiced Value: Total Invoiced Value for the Certified Line.

Application Details:

Applied For: For Stock Type Lines, this is the Total Quantity Applied for currently for this Sales Order Line.

Applied For Value: The Total Applied for Value for the Sales Order Line.

% Applied for value – For Measured Works lines, this is the total percentage of the work on Applications for this Sales Order Line.

Valuation:  Totals Certified Value of the Sales Order Line

Retention: Total Retentions for the Sales Order Line

Invoiced Value: Total Invoiced Value for the Certified Line.

Once you have entered all the details you can save the Ales Order down by clicking the Save & Process button. A Sales Order Number will be created as controlled by the configuration of the Construction Sales Order settings.

In Order to manage the lines on the Sales Order you can Add Items, Edit Items and Delete Items from the bottom of the detail lines grid.  You can also re-organise the Sales Order lines using the Move Up and Move Down buttons

You are also able to manage to stock and create purchase orders where your stock balance is insufficient to meet the Sales order requirements. These buttons are shown along the bottom of the Sales Order. You are able to print picking lists, despatch notes (you are also able to reprint despatch notes) and generate purchase orders.

Stock will need to be allocated again the order prior to printing the picking list. You will need to go into each line item and ensure that the allocated quantity has been set.

You are able to review the overall list from the main Sales order window:

For any stock items you will need to despatch the items prior to being able to complete the Sales order or create applications from it.

Print Picking list

Once you have allocated the stock to the order you can print the picking list, you will be prompted to save the order before generating the picking list:

Clicking yes will generate the picking list

Print Despatch note

The Generate Purchase orders will create an order for any items that you do not have sufficient stock to fulfil the order.

If a print version is required, then you are able to produce one using the Print Order Button:

Finally, if you need to cancel the Sales Order you can use the Cancel Order button.  This will prompt you prior to Cancelling, where you have to agree to continue

If the Sales Order has related Application, then you are unable to cancel the Sales Order.

If you have already raised an Application against the Sales Order that is a genuine Application, but you no longer required the rest of the order.  The Sales Order can be edited, and the lines reduced.  If you reduce the total value of each line to the applied for value, the Sales Order will Complete.

Amending an order

If you need to amend a Sales order, then you can either highlight the required Sales order from the list and choose the Amend order icon along to the top of the Sales Order List or select from the menu

If you select from the menu the following window will be displayed:

You are able to search by:

Project: Will return all orders associated with the project entered

Customer: Will return all orders associated with the customer entered

Order Number: Will return the specific order for the number entered

Or alternatively click the Display button with no search criteria entered and all quotes will be returned.

Select the Sales order you wish to amend and click the Amend Button. This will open the Sales Order window and you can then add or amend items as well as changing the Status.

4.5. Create Applications

There are two methods used to raise an Application against a Sales Order.  The first being from the Construction Sales Order List:

With a Sales Order selected from the line, you can use the Create Application button to start recording an application against the Sales Order.  Using this method, pre-fills in the Project and filters out the specific selected Sales Order

The alternative method is using the Create Application from the Sales Order Menu section.

This presents Create Application screen, without the pre-filled Project and filters Construction Sales Orders.

From here, you would select a Project and it will show you all the Sales Order Lines against the Project and will allow you to raise a Application against multiple Sales Orders that have been raised against the same project.

Raising an Application:

In order to raise an application, you can either enter an Applied for Quantity or Value depending on whether the line item is Stock or Measured works.  This is for the application you are generating as part of this process.  If you are using Cumulative values, these can also be entered in the Cumulative column.

Once the values have been either entered in the Applied for or Cumulative columns, using the Create Application button generates the Customer Application.

5. Subcontractor Purchase Orders

Within the Construction Module there is now the ability to enter Subcontractor Purchase Orders.

From the Construction menu select Subcontractor Purchase Orders.

Click Subcontractor Purchase Order List to load the list view – this will give access to icons at the top of the screen to create a new order, amend an order and record a subcontractor application.

5.1. Supplier Settings

In order to use Subcontract Purchase Orders, the Supplier/Subcontractor is required to be set to ‘Use supplier application and subcontractor orders.’

Within the Sage Amend Suppliers screen there will be a Sicon tab with a section for Application.  Here you can select the tick box to enable the Supplier.

5.2. Orders

In Order to create a new Subcontractor Purchase Order, you can click on the ‘New Order’ button on the Subcontract Purchase Order List view or from the Menu.

This opens the New Subcontractor Purchase Order Window where you fist need to select the Project from the drop-down list and Phase, Stage and Activity if you are using these within Projects that is associated with the Subcontractor Purchase Order.

Just like a Sage Purchase Order, you need to select the Supplier that you intend to raise the Subcontractor Purchase Order for, from the Supplier Code or Short Name drop down.

As this is a Subcontract Purchase Order you Supplier needs to have a specific setting set on the Supplier account in order to use this type of Order where you will be using Application and Valuation to process the Invoice against.

If you Supplier isn’t tagged to use Supplier Applications, then you will see the message below:

“This Supplier ‘Supplier Code’ has not been configured to use supplier applications. Please use the standard Sage purchase order processing”.

When you are using a Supplier that is enabled for Subcontractor Purchase Orders and Application, you can select the Supplier from the list enabling the rest of the Purchase Order Window.

Order Details

Project: The Project required for this Purchase Order.  Subcontract Purchase Orders only allow one Project per Order.  You will also be prompted for a Phase, Stage and/or Activity depending on the Project settings.  Phase, Stage and/or Activity can be changed on the detail line if the Purchase Order covers multiple Phases, Stage or Activities.

Code: Selection of Supplier as per Sage.  Suppliers must be enabled for Subcontract Purchase Orders and Applications.

Default Project Header: Can set a default Project Header for the Order.  This can be overwritten on the line.

Order Number: This is set initially to TBA is auto numbering is turned on.  Will be a Free Text field is auto numbering is turned off.

Order Status: Either Live, Cancelled or Complete.

Document Date: Date of the Purchase Order. Defaults to today’s date.

Requested Delivery Date: Required Delivery Date of the Purchase Order. This can also be set on a line-by-line basis.

Project PO Number: If there is a Customer Purchase Order store on the Project, this is pulled through from the Project.

If using a Project that has a Project Address, when selecting the Project, you will be prompted to select a delivery Address.  This would give you the option for the Default Company Address or the Default Project Address.  Where you have multiple Project Address you can select from this list using the Select Project Address button.

The selected address is then populated on the Delivery & Analysis Tab:

Delivery & Analysis

Delivery Address: Populated from the Project Selection prompt if using Project Address. Can be changed using the Project Selection or can be typed in Free Text.

Order Originator: Defaults to the current logged in Sage User but can be changed from the drop-down list to an alternative Sage User.

Analysis Codes: Sage POP Analysis codes are used on this screen if further POP Analysis is required.

Memo

Memo Tab: Can be used to record memos against the Subcontractor PO for any relevant notes.  Each Memo can be added using the ‘Add’ button and will record a date and time stamp along with the user who entered the note.

Show Details: The show details option, displays the highlighted note in the bottom half of the memo tab.

History

This tab records a history of changes and action that have happened on the Subcontractor PO as an Audit Trail.

Once all the Header details are recorded on the Subcontract Purchase Order, you can start to populate the Details lines for what you are purchasing.  This is achieved by pressing the add items button on the Order Details Tab.

Purchase Order Line

Project: The selected Project from the Header of the Purchase Order.  This section can be used to change the Phase, Stage and/or Activity on the Purchase Order Line.  The Phase, Stage, Activity selection is shown by selecting the folder icon next to the Project.

Project Header: Select the Project Header from the drop down for the required project analysis on the line.

Item Type: Subcontract Purchase Orders allow Free Text items or comment line only.

Free Text Type: There are types of Free Text items that can be used, either Measured Works or Stock. 

Stock option enabled Quantity Selection which is similar to Standard Sage.  When raising an Application against a stock line, you would be expecting to Raise that against the quantity delivered.

The Measured works option is a set Unit Price without a Quantity.  For example, to delivery £9000 worth of work.  Applications raised against measured works are raise as a value or percentage complete.

Item Description: Free Text where detail can be added for the Purchase Order Line.

Quantity: If using the Free Text Type Stock, you would need to set the quantity here, defaults to 1.

Unit Price: Used for both Stock and Measured work for the unit price of the line

Tax Code: VAT/Tax code for the line.

Tax Value: Calculated Tax Value.  This field cannot be edited.

Line Total: Total Value of the Subcontractor

Receive Mode: Method on how you are receiving the line from the Subcontractor.

Automatically Receive – No need for a Good Received Process, all stock lines have their quantities received and all measured works are set to 100% complete.

Nominal Analysis: Defaulting from the Project Header set on the Line, can be overwritten if required.

Dates: Each line can have a specified delivery date, which defaults from the delivery date set on the Purchase Order Header.

Once you save the line, this is then added to the Subcontractor Purchase Order and the details are stored on the main Purchase Order Window.

This view for the detail lines, had 3 options, Lines Details, Line Quantities and Application Details:

Line Details:

No: Line number

Description: The description as per the details Lines

Project Header: Project Header selected

Project Level: Project Level as per the line.

Order Quantity: Total Quantity order for Stock lines only.

Unit Value: Unit Value or Stock or Measured Works

Line Total: Total Value of the line

Tax Code: Tax code used on the line.

Line Quantities:

Received: For Stock Items, this show the Quantity that has been receipted against the Order Line.  If the Line is set to Automatically Receive, then this will be automatically populated with the Quantity Ordered and isn’t editable.  If you have this set to Manually Receive, then this fields becomes editable and will need to be populated in order to raise an Application.  You can only apply for stock items once the stock has been receipted.

% Complete: For Measure Works lines this show how much Measure Works has been completed on a Percentage basis.  In the same way that Stock works, if the line is set to Automatically Receive then this is set to 100%.  If the line is set to Manually Receive, then this field becomes editable will need to be populated in order to raise an Application. You can only apply Measured Works once the % Complete has been set.

Total Received: Shows the total line value for the amount that has been received or the percentage complete for the line.

Application Details:

Applied For: For Stock Type Lines, this is the Total Quantity Applied for currently for this Purchase Order Line.

% on Application: For Measured Works lines, this is the total percentage of the work on Applications for this Purchase Order Line.

Applied For Value: The Total Applied for Value for the Purchase Order Line.

Valuation:  Totals Certified Value of the Purchase Order Line

Retention: Total Retentions for the Purchase Order Line

Invoiced Value: Total Invoiced Value for the Certified Line.

In Order to manage the lines on the Purchase Order you can Add Items, Edit Items and Delete Items from the bottom of the detail lines grid.  You can also re-organise the Purchase Order lines using the Move Up and Move Down buttons.

You can also generate a Subcontractor Purchase Order Report from here, if a print version is required using the Print Order Report Button:

Finally, if you need to cancel the Purchase Order you can use the Cancel Order button.  This will prompt you prior to Cancelling, where you have to agree to continue.

If the Purchase Order has related Application, then you are unable to cancel the Purchase Order.

If you have already raised an Application against the Purchase Order that is a genuine Application, but you no longer required the rest of the order.  The Purchase Order can be edited, and the lines reduced.  If you reduce the total value of each line to the applied for value, the Purchase Order will Complete.

5.3. Receive Stock, Subcontractor Purchase Orders

If you have the Purchase Order Line set to Manually Receive the goods, the Purchase Order Lines need to be received prior to any Applications being entered.

You need to Amend the Order either via the Subcontractor Purchase Order List or from the Sage menu under Construction > Subcontractor Purchase Orders > Amend Purchase Order.  If using the menu version, you will need used the ‘Display’ button to show all Purchase Orders or use the filter to filter out Project, Supplier, Order Number, or a combination.

Once the Amend Purchase Order screen is open, to manually receive the stock for the Purchase Order, click the Line Quantities radio button.

For Measure work item lines, you then need to add the % complete of the line, for example, if the Subcontractor was 50% of the way through the contracted work, you would enter 50 into the % Complete column.

For Stock items lines, you need to add the Quantity Received into the Received column, for example, if the Subcontractor had delivered 11,000 of the 22,000 items ordered you would enter 11,000 into the Received column.

Click Save and Process to save the received quantities and percentage complete so an Application can be raised against the Purchase Order.

5.4. Record Subcontractor Applications

There are two methods used to raise an Application against a Purchase Order.  The first being from the Subcontractor Purchase Order List:

With a Subcontractor Purchase Order selected from the line, you can use the Record Subcontractor Application button to start recording an application against the Subcontractor Purchase Order.  Using this method, pre-fills in the Project and filters out the specific selected Purchase Order

The alternative method is using the Record Subcontractor Application from the Subcontract Purchase Order Menu section.

This presents the Record Subcontractor Application screen, without the pre-filled Project and filters Subcontractor Purchase Order.

From here, you would select a Project and it will show you all the Subcontractor Purchase Order Lines against the Project and will allow you to raise a Application against multiple Subcontractor Purchase Orders that have been raised against the same project and Supplier.

Raising an Application:

In order to raise an application, you can either enter an Applied for Quantity or Value depending on weather the line item is Stock or Measured works.  This work on ‘this application’ basis.  If the Subcontractor Appling for Payment uses Cumulative values, these can also be entered in the Cumulative column.

Once the values have been either entered in the Applied for or Cumulative columns, using the Create Application button generates the Supplier Application.

5.5. Subcontractor Purchase Order Applications vs Supplier Applications

The ability to raise Purchase Orders from within the Construction module and raise applications against them has been added as it improves the process of Applications and general cost management.

The ability to raise purchase orders can play a key role in standardising your cost capture process as you can break items down to an itemised line level and match each item to budget line. You are also able to improve your budgets as you can create a one to one relationship between items purchased and budgets. The PO provides a record of what has been purchased.

Raising Purchase Orders and the display

Purchase orders act as a legal document. Having a written agreement regarding the prices and quantity of items in your order protects both you and the seller.

Purchase orders protect you by giving you a legal, enforceable record of exactly what you ordered. It also guards your company against unexpected price increases. If you receive the wrong quantity or type of items, or if you’re charged the wrong amount, you can go back to the purchase order to help resolve the issue.

POs also protect the seller. For example, if someone in your company didn’t remember how many items they ordered, they might incorrectly complain about an order received. Having purchase order documents lets you quickly answer the question of how much was ordered and resolve potential issues before they damage your relationship with a valued supplier.

The PO can also allow you to monitor what is being raised against them as applications

The PO also allows you to draw up exactly what is to be delivered combining both measured works and stock items.

The stock items can be either free text or standard stock items. These can be used to improve the inventory management as you have a record of the stock purchased and you are able to utilise the auto allocation of stock to the project. You are then able to review the stock purchased verses stock used to refine your ordering process.

6. Retentions Ledger

A Retention is a percentage of payment held back typically by a client or main contractor under a construction contract to act as security, or an assurance that the project works will be completed and that defects which may subsequently develop are remedied. This is typically broken down into:

• Practical completion – sometimes described as being the point at which a building is complete. Except for minor defects that can be rectified with minimal interference or disturbance to the occupier.

Alternatively, practical completion can be used to refer to the point at which an architect or contract administrator confirms that the contractor has achieved practical completion under the contract. Usually by giving a certificate to this effect.  It is worth noting that most standard form contracts do not actually define practical completion. Instead leaving this to the professional judgment of the architect or contract administrator.

Practical completion retentions are usually released at the final application stage of a project

• Defects – These are usually held for a longer period of time and cover any defects that are found after the project has been completed. Defect retentions are release once a final assessment has been made (sometimes known as the Certificate of Making Good Defects) and a final certificate is issued, no retention is held following this final assessment

Retentions can be raised as part of an application or against stand-alone transactions (Sales and Purchase ledger or Sales or Purchase Order Processing transactions). There are implications for the release of these retentions depending on how they were raised.

The Retentions Ledger contain two separate elements

1. Retention Applications ledger – Allows visibility of all retentions raised as part of the application process, but the releasing of these retentions must be done through the relevant Applications Ledger (Customer or Supplier)
2. Retentions Ledger – Allows the retentions to be released for those retentions raised via other means than an application

6.1. Retention Applications Ledger

The Retentions Application Ledger allows you to view all of the retentions raised as part of the application process (for both Customer and Supplier Applications) but does not allow you to process any aspect of the retention. This must be done through the relevant Applications Ledger (Customer or Supplier)

The Retention Application Ledger can be viewed by selecting Sicon Construction > Retentions > Retention Application Ledger

The following window will be displayed:

The window opens displaying all retentions linked to applications. You are able to refine the displayed results by using the search criteria detailed at the top of the window

Project

Type – Either Sales or Purchases can be selected from the drop down. If left blank, then ALL retentions will be displayed

Between a date range using the From and To date fields

Ref – Allows you to search by the reference created when the application is entered:

The reference takes the form of PROJECT/APPLICATION NUMBER. This is pre-set when using Application Auto Numbering.

2nd ref – Allows you to search by the reference created when the application is entered:

This will be free text.

Customer

You are able to search using:

Code – This is a look up to the Sage Customer list

Short name

Postcode

Supplier This is a look up to the Sage Supplier list

Code

Short name

Postcode

You are also able to search by the retention type from the drop down, either Practical Completion or Defects

6.2. Sales and Purchase Ledger Transactions

Sales Ledger Transactions

In order for Retentions to be generated when raising a Sales Ledger Transaction, the customer account needs to have been enabled to have retentions applied against them.

This done from the Sicon Tab when amending the Customer. Select the Sicon tab and then Retentions from the Sub menu:

Apply retentions to this customer must be checked for retentions to be generated when raising a Sales Ledger transaction.

You then specify the retention types that are to be generated. Typically, this will be

• Works (Practical Completion)
• Works (Defects)

The percentage and duration of the retention are then specified. The example above is using a 5 % overall retention split equally between Works (Practical Completion) and Works (Defects).

Enable Capped Retentions – If you have agreed an upper limit of on the retentions that are to be generated for a client these can be set. You check the Enable Capped retentions and then set the limit for retentions to be generated. When generating retentions if any are greater than the Capped retentions limit then this limit will be used.

Raising a Sales Ledger Transaction

When raising a Sales Ledger transaction there is nowhere to enter the retentions to be generated. It is all done in the background using the settings defined against the Customer.

In the example below a Sales Ledger Invoice has been raised for £50,000.

When you Save the Sales Ledger Invoice the following window will be displayed showing the retentions generated based on the settings against the customer:

The initial Credit to the P & L Account defined by the project header selected for the the Invoice is shown for £50,000 along with the £10,000 VAT, which is credited to the VAT output Account.

There is a £60,000 debit to the Debtors Control Account

There are then two further sets of transactions that relate to the Retention Generation. This is the posting of the credit note. The postings are using the Retention Sales account

Purchase Ledger Transactions

In order for Retentions to be generated when raising a Sales Ledger Transaction, the Supplier account needs to have been enabled to have retentions applied against them.

This done from the Sicon Tab when amending the Customer. Select the Sicon tab and then Retentions from the Sub menu:

Apply retentions to this supplier must be checked for retentions to be generated when raising a Sales Ledger transaction.

You then specify the retention types that are to be generated. Typically, this will be

• Works (Practical Completion)
• Works (Defects)

The percentage and duration of the retention are then specified. The example above is using a 5 % overall retention split equally between Works (Practical Completion) and Works (Defects).

Enable Capped Retentions – If you have agreed an upper limit of on the retentions that are to be generated for a supplier these can be set. You check the Enable Capped retentions and then set the limit for retentions to be generated. When generating retentions if any are greater than the Capped retentions limit then this limit will be used.

As you add invoices, the retention value will increase up to the amount the cap has been set to. When this is reached you will get the following warning:

OK this message and amend the values or percentage amounts until you are below the capped amount. OK to confirm these changes.

As retentions are released from the ledger you will be able to generate more invoices with retentions applied to them however when the cap is reached you cannot exceed it and would need to enter invoices with a zero retention.

When raising a Purchase Ledger transaction there is nowhere to enter the retentions to be generated. It is all done in the background using the settings defined against the Customer.

In the example below a Purchase Ledger Invoice has been raised for £50,000.

When you Save the Purchase Ledger Invoice the following window will be displayed showing the retentions generated based on the settings against the supplier:

The % or Value can be amended, and the due date changed.

When you click OK, the following window will be displayed:

Informing you that a Retention Purchase Credit has been added.

If the supplier has been set to use Applications, then the Update Supplier Application window will be displayed (see section):

The associated Nominal postings are shown below:

The initial debit to the P & L Account defined by the project header selected for the Invoice is shown for £50,000.

There is a £50,000 credit to the Creditors Control Account

There are then two further sets of transactions that relate to the Retention Generation. This is the posting of the credit note. The postings are using the Retention Costs account.

6.3. SOP and POP Transactions

Sales Order Processing (SOP) Transactions

There is a difference in the way Retentions are calculated on Sales Order transactions. The retentions are calculated based on those set on the Retentions tab.

Retentions tab detail:

You will need to set the Project and Project Header for the retentions using the Select Project for Retentions. Note that the retentions %, values and due date fields will remain greyed out and uneditable until a project has been entered and at least one line on the sales order.

If the project has default retentions set against it these will be populated in the section below.

If there are no defaults entered against the project, you will need to add the % (or value) and the due date. In the example below the retentions and due dates have been set against the project and one order line have been pulled through once the project has been entered:

When you save the order there is no message displayed informing you of the retentions generated due to the manual input required to set the retentions against the order.

There are no associated nominal postings with the creation of the Sales Order, when the order is posted

Purchase Order Processing

In order to use the retention functionality against standard Purchase Order Processing you will need to ensure that the supplier(s) you are working with are not set to use Supplier Applications otherwise the following message will be displayed when entering a PO.

You are able to use a combination of supplier set up. You would not use Supplier Applications if the Supplier was only invoicing and not using the Applications process. The supplier needs to be set to have Retentions generated for them.

You would raise the PO in the normal way. When the Invoice is posted the following window will be displayed:

Showing the retention values and dates set against the supplier, on clicking OK a message will be displayed confirming the value of the purchase credit note has been created.

The nominal postings associated with a Purchase Order transaction are shown below:

The table below summarises the movements

6.4. Release Retentions

From the Retentions menu, select Retentions Ledger.

The default is to display all transactions with retentions, this display can be filtered by Type – Sales or Purchase, and this would update the screen display to only show the Type selected. Searches can also be by Job, Customer or Supplier, the example below is for a Customer retention.

Note: Retentions created with Applications cannot be released from the retention ledger and must be released from within the application module.

Opening Balance Retentions will be shown as 100% in the ledger, from v20xx.17.0.7 these may be generated from the Application and therefore should be released from there. Retentions added to already posted invoices, imported retentions and ones created from Sales or Purchase invoices should be released from the ledger if they are not subsequently attached to an application.

The default display is for all transactions with retentions, this display can be filtered by Type – Sales or Purchase, and this would update the screen display to only show the Type selected. Searches can also be by Job, Customer or Supplier, the example below is for Customer retentions.

Click the retention to be released, this automatically enters the Released Amt and the Released Date. To change the amount to release click into the Released Amt field and enter the new figure.

Click Release. The following window will be displayed to confirm the details for the retentions selected:

Click Release again

Note that the reference is automatically created. This needs to be entered in previous versions. The Retention Release Certificate will be produced, an example is shown below:

If a retention needs to be amended, highlight the retention to be released, the released date should not be populated.

Click the Adjust Retention Button to open the adjustment window, make sure you have NOT ticked the retention line as this will populate the Released Amt and this needs to be blank when adjusting the value.

Click Yes to confirm you want to Write Off the retention.

You will be prompted for the Write Off Date:

This will move the write off into a previous period if the date has been set accordingly.

Retentions can be added from the retention ledger if required.

Click the Add Retention button to open the window below.

Select the Ledger from the drop-down list, account Code or Short Name, Project Number, Project Header, Retention Type 1 (Work OR Materials), Retention Type 2 (Practical Completion or Defects) Retention amount, Reference and Retention Due Date. The Tax amount will default to the Std Rate but can be changed if required.

Click Save to generate the retention.

Retentions created here will show with a 100% Retention figure.

Releasing a Supplier Retention.

Click the Retention to be released, this will populate the Released Date field automatically.

Click the Release button.

The following confirmation window will be displayed. If using earlier versions, you may be prompted to enter a reference.

If a retention is for CIS, Select the line as described above, enter the reference, and click Release.

A CIS Information window will open, giving you the option to change the percentage if required if this setting is flagged in the Retentions Settings screen. Click OK to confirm the CIS details.

The CIS element of the retention will be confirmed, and a credit note will be posted to the supplier account.

The CIS element of the retention will be confirmed, and a credit note will be posted to the supplier account.

Purchase Retentions can be Added, Adjusted and Written Off in the same manner as Sales Retentions.

6.5. Retentions Ledger

From the Retentions menu, select Retentions Ledger.

The default is to display all transactions with retentions, this display can be filtered by Type – Sales or Purchase, and this would update the screen display to only show the Type selected. Searches can also be by Job, Customer or Supplier, the example below is for a Customer retention.

Note: Retentions created with Applications cannot be released from the retention ledger and must be released from within the application module.

6.6. Add Retentions to Posted Invoices

From the Menu options select Add Retentions To Posted Invoices

You will be prompted to specify what Invoice type you wish to link a retention to.

You will then be prompted to select the Customer or Supplier Account you wish to link to:

From the drop-down lists, select Invoice Type, Code or Short Name and enter a date range and click Search. The following window will be displayed:

Input a Retention Percentage and a Due Date, click Save.

You will see a confirmation dialogue box stating that the retention(s) has been created.

6.7. Opening Balance Retentions

This is done through Adding a retention as described above. Note that this is only where Retentions are being added where they are linked to an invoice. If the retention is linked to an Application, then this must been added through the relevant Applications Ledger.

7. Settings

All of the settings sections are covered below:

• General Construction Settings
• Application Settings
• Retention Settings
• Construction Sales Order Settings
• Subcontractor Purchase Order Settings

7.1. Construction Settings

These are found under Sicon Construction>Utilities:

General

Within the general construction settings, you can set the options to enable specific functionality.  You can choose the functionality you require (based on the enabled modules) and disable features such as CITB that are supplied with the CIS module at no extra cost.

• CIS:option available to disable this feature if not needed
• CITB:option available to disable this feature if not needed
• Retentions:option available to disable this feature if not needed
• Applications:option available to disable this feature if not needed

Construct Import Settings

Please contact Sicon if you have any queries about importing data from Construct

This is used for setting the Construct table to use when Importing construction data from Construct.

Get project header type from is defaulted to Q Section Headers and is recommended to be left unchanged.

Liability Insurance

Where a supplier has been set up with Liability Insurance details:

You are able to choose if you want the expiry date to be displayed a number of days before it is due to expiry. If you wanted 30 days’ notice that the liability is due to expire then you would set 30 in the Show Liability warning before expiry

Put supplier accounts on hold for expired public Liability Insurance If you wish to place the Supplier account on hold if the liability insurance has expired then ensure you check this check box

M.I. Enquiry Tab:

Sales WIP Screen to determine which nominal accounts are used when entering manual cost and sales adjustments directly into the WIP enquiry screen in order to produce monthly management accounts.

• Period End Accrual Nominal: This is the nominal account that will be used when accruals are applied to the period end enquiry screen.

7.2. Application Settings

The Application Settings can be found under the Applications sub-menu within the Construction Module.  These settings control how both Customer and Supplier Applications are processed.

General:

Turn on auto application number generation (by Project): With this turned on, the application number will automatically generate based on the Project Number and the Prefix and Length.  For example, P00024/AP000001

Turn on PL valuation authorisation (with WAP): This setting is required if you are using approval within WAP. Full details of this can be found in the Approvals System Settings Help & User Guide.

Disable application gross on entry (allow only cumulative): With this setting enabled you will only be able to enter the Cumulative Value when entering an application.

Default Expiry: Set the default Expiry of an Application to 30 days. This is for reporting purposes only and does not mean that a new application would need to be entered once the date is passed. This is used as a filter on some standard reports, an example is shown below:

Default Application Project Headers: Set the default Project Header for Sales and Purchase Applications. These will dictate the P & L nominals where applications will be posted to.

Details of working with Project Headers can be found in the Sicon Projects Help & User Guide.

Nominal Accounts:

The settings have changed so you can now set when you recognise the values for the application, known as Revenue recognition.

This can either be done on Application or Invoice, which is selected from the drop down Recognise Values On:

Different nominals will be displayed if choosing to recognise revenue on Invoice.

The commonest revenue recognition is based on Applications. The process for dealing with revenue recognition based on Invoices is precisely the same but the journal postings will be different.

These are summarised below:

NOTE: Versions prior to v21 the nominal posting was optional.  With all later version this is now Mandatory and requires populating before entering any Applications or Valuations.

The following error messages will be displayed if no nominal accounts have been set up

For Retentions:

Applications Sales: This Nominal Code is used when an Application is created or amended.  Typically, this is a P&L Code as Revenue is recognised at Application Stage.  It is also sometime held on the Balance Sheet to just record the applied for value. This is only available when you are choosing to recognise revenue on Invoice.

Application Debtors: This Nominal Code is used when an Application is Created or Amended.  The Application Debtors is a control account for the Application Sales.

Application Costs: This Nominal Code is used when an Application is created or amended.  Typically, this is a P&L Code as Cost is recognised at Application Stage.  It is also sometime held on the Balance Sheet to just record the applied for value. This is only available when you are choosing to recognise revenue on Invoice.

Application Creditors: This Nominal Code is used when an Application is Created or Amended.  The Application Creditors is a control account for the Application Costs.

Valuation Sales: When an Application becomes certified, the Revenue is posted from the Application Sales Nominal to the Valuation Sales Nominal Code.  As per the Application Sales, this is typically a P&L code to recognise Revenue.  Having a different Application and Valuation Nominal allows for a comparison between Applied for and Certified Values. This is only available when you are choosing to recognise revenue on Invoice.

Valuation Debtors:  This Nominal Code is used when an Application becomes certified.  The Valuation Debtors is a control account for the Valuation Sales.

Valuation Costs: When an Application becomes certified, the Cost is posted from the Application Cost Nominal to the Valuation Costs Nominal Code.  As per the Application Cost, this is typically a P&L code to recognise Cost.  Having a different Application and Valuation Nominal allows for a comparison between Applied for and Certified Values. This is only available when you are choosing to recognise revenue on Invoice.

Valuation Creditors: This Nominal Code is used when an Application becomes certified.  The Valuation Creditors is a control account for the Valuation Costs.

Retention Sales: When Retention is added or amended on a Sales Application this nominal code is the Retention Value.  This is typically the same nominal code as the Application Sales, to recognise the Gross Application value as Revenue, this however can be different.

 Retention Debtors (Applications): This Nominal Code is used when a Retention is added or amended on an Application.  The Application Debtors is a control account for the Application Sales.

Retention Debtors (Valuations): This Nominal Code is used when a Valuation is added to an Application.  The control account will hold the Certified value of the Retention.

Retention Cost: When Retention is added or amended on a Purchase Application this nominal code is the Retention Value.  This is typically the same nominal code as the Application Cost, to recognise the Gross Application value as Cost, this however can be different.

Retention Creditors (Applications): This Nominal Code is used when a Retention is added or amended on an Application.  The Application Creditors is a control account for the Application Costs.

Retention Creditors (Valuations): This Nominal Code is used when a Valuation is added to an Application.  The control account will hold the Certified value of the Retention.

Sales Write Off: When a non-Application Retention (not related to an Application, i.e. a Sales Invoice Retention), this is the nominal code used to write off the Retention.

Purchase Write Off: When a non-Application Retention (not related to an Application, i.e. a Sales Invoice Retention), this is the nominal code used to write off the Retention.

Sales Discount: This Nominal code is used when a discount has been applied to an Application. The Nominal account can be either P & L or Balance Sheet. The control account will hold the discounted value against an Application.

Purchase Discount: This Nominal code is used when a discount has been applied to an Application. The Nominal account can be either P & L or Balance Sheet. The control account will hold the discounted value against an Application.

A simple posting diagram is shown below, where revenue recognition is based on Applications:

7.3. Retention Settings

From the Construction menu select Retentions>Settings and the following window will be displayed:

There are two tabs; one covering general settings the other showing the nominals used

General Tab

Default Project Headers

You are able to specify default project Headers for both Sales and Purchase transaction retentions. These will be overridden if another is selected when raising the transaction.

Default Tax Code for PL

Override to use tax code – You are able to set an override tax code to be used when generating retentions links to Purchase ledger or Purchase Order. This will be used as the tax code when the retention is released.

Release options

These settings control aspects of retention release

Allow tax to be change at release time – Allows you to be able to change the Tax rate when the retention is released.  It is a feature that enables you to deal with rounding on client/supplier systems.

Allow the CIS Labour % of Invoice value to be changed at release time – Retention releases will use the original nominal codes and create CIS transactions where applicable.

Create 1 release record per customer/supplier from multiple retention releases: With this feature there is less detail posted to the ledgers because of fewer transactions but the detail remains in the retention’s module.

Show unreleased retentions before processing suggested payments: Ticking this option will show unreleased retentions to be offset against invoices before processing suggested payments.

Nominals

If using Applications then the nominals will be inherited from the Applications Settings, see section 9.2.

If not, then the nominals must be entered here.

Retention Sales: When Retention is added or amended on a Sales Application this nominal code is the Retention Value.  This is typically the same nominal code as the Application Sales, to recognise the Gross Application value as Revenue, this however can be different.

 Retention Debtors (Applications): This Nominal Code is used when a Retention is added or amended on an Application.  The Application Debtors is a control account for the Application Sales.

Retention Debtors (Valuations): This Nominal Code is used when a Valuation is added to an Application.  The control account will hold the Certified value of the Retention.

Retention Cost: When Retention is added or amended on a Purchase Application this nominal code is the Retention Value.  This is typically the same nominal code as the Application Cost, to recognise the Gross Application value as Cost, this however can be different.

Retention Creditors (Applications): This Nominal Code is used when a Retention is added or amended on an Application.  The Application Creditors is a control account for the Application Costs.

Retention Creditors (Valuations): This Nominal Code is used when a Valuation is added to an Application.  The control account will hold the Certified value of the Retention.

Sales Write Off: When a non-Application Retention (not related to an Application, i.e. a Sales Invoice Retention), this is the nominal code used to write off the Retention.

Purchase Write Off: When a non-Application Retention (not related to an Application, i.e. a Sales Invoice Retention), this is the nominal code used to write off the Retention.

7.4. Construction Sales Order Settings

From the Construction menu select Sales Orders>Settings.

The following window will be displayed.

Internal Area – This is used to specify the Internal Area where you can store stock movements on the Sales Order.

The next three boxes will allow you to specify the format of Construction sales Order numbers

Prefix – Allows you to specify the format the Prefix to Construction Sales order numbers

Format – Allows further formatting of Construction Sales Orders, in the example shown above the zeros are used as padding

Next Number – Allows you to control the next selected number when an order is created

From the settings displayed the number created would be:

SOP00000000009

Allow Free text Order Number – Allows you to enter free text numbers. This may be used where for each contract the is different number structure required. You could use the Customers reference.

Auto allocate Stock – If checked when stock is added to a Sales order it will be automatically allocated to the order and will be moved to the Internal area specified above.

Store order number on 2^nd Reference of generated applications – This will store the order number in the 2^ndReference field on any generated applications. This field will also be disabled from being edited. An example of an application generated against the Sales order is shown below:

Information dots have been added to provide an explanation for the field purpose:

7.5. Subcontractor Purchase Order Settings

The Subcontractor Purchase Order Settings can be found under the Subcontractor Purchase Order sub-menu within the Construction Module.  These setting are used to control how Subcontractor Purchase Orders are processed.

Purchase Order Number Format: The Subcontractor Purchase Order have their own numbering sequence, and this is where you can set the format.  In the example the format has been set to prefix with SC the four numbers, i.e. SC0506.

Allow Free Text Order Number: Instead of using auto numbering by the system, the user can enter in a Free Text order number

Receive Mode: This is the default method of receiving the Order Lines.  The options are Automatically Receive or Manually Receive.  This can be changed on the Purchase Order lines individually if required.

Default Project Header:  This is the default Project Header for the Purchase Order lines.  This can be changed on the Purchase Order lines individually if required.  The fault can also be set to blank, so the ender user is forced to select a Header.

Automatically create valuation on generating POP applications: With this option selected, when processing a Application against a Purchase Order it will automatically generate the Valuation with the same Value as the Application.  This is typically used when the certified value is pre-agreed, and this would be what the Subcontractor is applying for.

Store order number on 2^nd reference of generating applications: With this option selected, the Purchase Order number will be the 2^nd reference of the application and the field will become disabled, so cannot be edited.

8. Construction Industry Scheme (CIS) Reverse Charge VAT

NOTE: This feature is only Available from Sage 200 Cloud Professional Summer 2019 onwards.

As of March 2021, those working in the UK’s construction industry might have to handle and pay VAT in a different way following the introduction of the new VAT reverse charge system for the Construction Industry Scheme (CIS).

For supplies of certain specified construction services, the customer will be liable to account to HMRC for the VAT for these purchases instead of the supplier. The reverse charge will include goods, where those goods are supplied with the specified services.

HMRC provided information on Reverse Charge VAT: https://www.gov.uk/government/publications/vat-reverse-charge-for-building-and-construction-services/vat-reverse-charge-for-building-and-construction-services

HMRC provided flowcharts on the application of Reverse Chare VAT:

https://www.gov.uk/guidance/vat-reverse-charge-technical-guide#flowcharts

Sage have also provided a lot of useful information on the Reverse Charge VAT: http://desktophelp.sage.co.uk/sage200/professional/Content/General/CIS%20reverse%20charge%20FAQs.htm

The main impact on this change within the Sage system is for the VAT return, however HMRC recommends that text is included on Invoices and Credit Notes that are eligible for CIS Reverse Charge VAT.

In order to setup the new VAT rates, it is recommended that you speak to your Sage Business Partner.  However below is an example of the new VAT Codes in the VAT Rates found in Accounting System Manager or Configuration Settings within Sage.

8.1. CIS Reverse Charge Text on Invoices and Credit Notes

As part of the changes to Sage 200c Summer 2019 and onwards Sage have included the recommended text from HMRC within their Sales Order Processing Module.  Navigating to Sales Order Processing > SOP Utilities > System Set Up > SOP Settings and the Invoice Printing Tab shows you these options:

For the ‘Print the following text on invoices when CIS reverse charge is applied’ options you have:
Reverse Charge: VAT Act 1994 Section 55A applies
Reverse Charge: S55A VATA 94 applies
Reverse Charge: Customer to pay the VAT to HMRC

For the ‘Print the following text on credit notes when CIS reverse charge is applied’ option you have:
Reverse Charge: Customer to account for the output tax adjustment of -£X to HMRC
Reverse Charge: UK customer to account for the output tax adjustment of -£X to HRMC
Customer to account to HMRC for the adjustment to reverse charge output tax on the VAT exclusive price of items.

Note: the -£X is displayed with the actual VAT value for the credit note.

The Customer Valuation template that is supplied with the Construction Suit has been adapted to include the selected text on the bottom of the template in a similar fashion to the Sage SOP Invoice layout.

Below is the Standard Sage SOP Invoice Layout with the Reverse Charge text appearing at the bottom:

As an example of how this works with the Customer Application Ledger a certificate has been entered for £10,000 using the reverse charge VAT code:

When printing this Valuation Invoice, we can see the Reverse charge VAT text at the bottom of the Layout:

When adding a Credit Note Valuation to the Applications Module the Text displayed is from the Credit Note option selected in SOP Settings:

When printing the Credit note using the Construction Invoice Layout (it is the same layout for Credit Notes and Invoices) this displays:

The -£X is replaced by the VAT value of the Credit Note.

8.2. Non-Reverse Charge Invoices and Credit Notes

If the Valuation Invoice is not applicable for Reverse Charge VAT, the same Layout is used, as the Text only appears when using the Reverse Charge VAT codes are used

A Valuation using Standard Rate VAT:

Below is the Valuation Invoice layout without the Reverse Charge VAT text:

8.3. Amending an Existing Valuation Invoice Layout to include the Reverse Charge Text

If you have an existing customised layout and don’t wish to make changes to add the hotfix that included the changes above, you can add the Reverse Charge text to your existing layout.

The Valuation Layout is called ‘CON Valuation Invoice’ and if this has been changed should be in the Sage folder \Sage\reporting\custom\layouts, if you don’t have the file in there then will appear in \Sage\reporting\default\layouts.

This is a standard Sage Report Designer layout, and this can be edited in Sage Report Designer.

8.4. Common Questions

Do I need to upgrade the Construction Module?

This depends. The reason why you might need to put the latest hotfix for Sicon Construction (version 19.1 onwards) on is to include the Reverse Charge VAT text onto Valuation Invoice layout. Your current layout could potentially be amended to include the Reverse Charge text. Upgrading to the latest hotfix will only work for the Reverse Charge text if you are on version Summer 2019 of Sage or later.

Those on a version prior to 19.1 will need to manually add the Reverse Charge Text to their layout

The most import part is to ensure your VAT codes are setup correctly in Sage.

The Original Application used a non-reverse charge VAT code, but I now need to add a Valuation using a non-reverse charge VAT code?

The Application generally doesn’t include VAT so when you add the Valuation you need to ensure the Nominal lines have the correct VAT code associated to them.  If required, you can amend the Application and change the VAT codes to be Reverse Charge.

I need to start using Reverse Charge VAT for this customer, but the VAT code is still showing a non-reverse charge VAT?

The default VAT code is populating from the Customer.  If you amend the VAT code on the Customer Record, this should filter through to the Applications Ledger.

Do I need a different Layout for Reverse Charge VAT and Non-Reverse Charge VAT?

No, there is only one layout for Valuation Invoices.  This is also used for both Invoices and Credit Notes

Will it affect my CIS return?

The Sicon Construction uses Purchase Invoices posted in Sage for the CIS return, using the Sage Invoice and allocation data.  No changes where required for the CIS return.

8.5. CIS for Sales Customers

Rate applied to all applicable sales ledger account transactions – If this % amount is populated in the CIS Settings, you will be able to flag sales accounts as being CIS applicable and the deductions will be actioned at the rate set here.

On the Customer Account, Sicon Tab select the CIS option and tick to Apply CIS.

Enter the invoice for the customer. The Reference entered on the invoice will be used on the Credit Note.

When the invoice is saved, a credit note is created.

In the Customer Transaction Enquiry screen, you will see that the Credit Note has automatically been allocated to the invoice, using the invoice ref and appending it with CIS so it is easy to see which credit note is linked to which invoice.

If your CIS settings are to calculate deductions based on Configured Nominal Accounts, when entering the invoice for the customer you will need to ensure you select one of the Labour Nominal Accounts you have in your CIS settings. If a different nominal code is on the invoice, no CIS credit Note will be generated.

Invoice line with the configured nominal account selected.

When the invoice is saved, the credit note is created.

The credit note is automatically allocated to the invoice in full so the Customer Transaction Enquiry screen shows the invoice with a partial allocation.

9. Reports

From the Construction Menu select the Reports folder.

There are sub folders for Customer Application reports, Supplier Application reports, Customer Retention reports, Supplier Retention reports, CIS reports and Sales Order reports.

In the Customer Applications folder you have 12 reports to choose from:

9.1. Customer Application Reports

Aged Application Detail – select the criteria for the report and click OK

Aged Application Summary – select the criteria for the report and click OK

Applications Detail and Retentions – select the criteria for the report and click OK

Applications Invoices and Credit Notes – select the criteria for the report and click OK

Invoices and Credits Raised By Customer – select the criteria for the report and click OK

Customer Applications Invoices & Credit Notes – select the criteria for the report and click OK

Customer Applications – select the criteria for the report and click OK

Customer Applications Summary – select the criteria for the report and click OK

Customer Applications With Valuation Transactions – select the criteria for the report and click OK

Detailed Applications With Retentions – select the criteria for the report and click OK

Reprint Valuation Invoice (and Credit Note) – select the criteria and click OK

Application Document – select the criteria and click OK

9.2. Supplier Application Reports

Supplier Applications List

Supplier Applications – select the criteria for the report and click OK

Supplier Application Summary – select the criteria for the report and click OK

Supplier Applications With Valuation Transactions – select the criteria for the report and click OK

Invoices and Credits Raised By Supplier – select the criteria and click OK

Reprint Payment Certificate

9.3. Customer Retentions Reports

Aged Retentions Detail – select the criteria for the report and click OK

Aged Retentions Summary – select the criteria for the report and click OK

Outstanding Retentions List – select the criteria for the report and click OK

Outstanding Retentions List by Date – select the criteria for the report and click OK

Retentions List Including Released – select the criteria for the report and click OK

Customer Retentions List Export

Customer Retention Held Summary

Reprint Retention Release Certificate

9.4. Supplier Retentions Reports

Supplier Retentions List

Outstanding Supplier Retentions List – select the criteria for the report and click OK

Outstanding Supplier Retentions List By Date – select the criteria for the report and click OK

Supplier Retentions List Including Released – select the criteria for the report and click OK

Supplier Retentions List Export

Supplier Retentions Summary

Reprint Retention Release Certificate

9.5. CIS Reports

CIS

Reports List

CIS Payments Audit Report – select the criteria for the report and click OK

CIS Payments Detail Report – select the criteria for the report and click OK

CIS Payments Detail Report (E-Mail) – select the criteria for the report and click OK

CIS Return Summary – select the criteria and click OK

CIS Subcontractor Monthly Statement – select the criteria and click OK

CIS Subcontractor Monthly Statement (E-Mail) – select the criteria and click OK

CIS Supplier List – select the criteria and click OK

CIS Return Summary by Supplier – select the criteria and click OK

Pending CIS Verifications – no criteria to select for this report

Outstanding CIS Subcontractor Invoices – select the criteria and click OK.

Will only produce a report if there are outstanding invoices

Outstanding CIS Subcontractor Credit Notes – select the criteria and click OK.

Will only produce a report if there are outstanding invoices.

Public Liability Insurance Details – select the criteria and click OK.

9.6. Sales Order Reports

SOP Reports List

Print SOP Picking List

Reprint SOP Picking List

Print SOP Despatch Note

SOP Order Details

SOP Order Details by Order Date

SOP Order Lines by Stock Item Report

SOP Applications

SOP Applications by Stock Item Report

9.7. Purchase Order Reports

Purchase Order Reports List

Print Purchase Orders

Purchase Order Details

9.8. Applications Ledger Reports

Applications Ledger Reports

Applications Ledger

Applications Ledger Detail

Applications Ledger by Transaction Type

10. Imports

A number of imports are supported by the Sicon Construction Module:

• Customer Applications
• Supplier Applications
• Application Forecasts
• Retentions
• Construction Sales Orders
• Subcontractor Purchase Orders

Each of the imports is found under the main submenu heading with the Sicon Construction Module.

10.1. Import Customer Applications

The Customer Application import would be used to import Applications against Projects and Customers that already exist within the system.  If creating a new Company these must be imported prior to importing the Applications to prevent any validation errors.

If you are planning on using the Customer Applications within the system, this Import will be the method used to get the cumulative opening balance for the Applications, the committed and actual revenue on the project and any opening balance valuation.  These do not require separate imports.

The Import can be used in a number of different scenarios and the information required on the import will change depending on what you are wanting to achieve.  The list below outlines the different options that the import can be used for:

Each method outlines below can handle, multiple nominal lines, retentions and discounts.

1. Opening Balance Application – This is used to get the cumulative Application balance onto the Project and Application Ledger, if the values are already in the nominal. If the Application includes Retention these will also be created as opening balances on the Project.
2. Opening Balance Application with Opening Balance Valuation – This is used to get the cumulative Application, Valued, Invoiced and Receipted value onto the Project and Applications Ledger, if the values are already in the nominal. If the Application includes Retention these will also be created as opening balances on the Project.
3. Opening Balance Application with Valuation – This option would be used to get the cumulative Application value onto the Project, but post the Valuation balance to the nominal. The valuation will be in as status for ready to be printed and posted to create the Invoice/Credit Note. If the Application includes Retention these will also be created as opening balances on the Project.
4. Opening Balance Application with Opening Balance Valuation and Valuation – This option would be used to get the cumulative Application value onto the Project and also allow you bring in an Opening Balance Valuation and a Valuation for the remain value of the Project that is also ready to be printed and Posted. If the Application includes Retention these will also be created as opening balances on the Project.
5. Application – This is used to import applications into the Project. This will post nominals and increase the cumulative values on the Project.  The Application can then be valued within Sage. If the Application includes Retention these will also be created with the respective nominal postings.  If the Application includes Discounts these will also be posted to the default Discounts Nominal.
6. Applications with Valuations – This will import Applications and Valuations and Post the nominal movements. This will increase the Project Cumulative and the Valuations will be ready to be Printed and Posted into Sage. If the Application includes Retention these will also be created with the respective nominal postings.  If the Application includes Discounts these will also be posted to the default Discounts Nominal.
7. Applications with Opening Balance Valuations – This should be used with caution as it is an unusual scenario and may cause nominal discrepancies. This will import the Application into the Project and post nominals.  The Valuation won’t post any of the nominal movements and the system will assume that the invoice/credit note and receipt will already be processed the sales ledger. If the Application includes Retention these will also be created with the respective nominal postings.  If the Application includes Discounts these will also be posted to the default Discounts Nominal.
8. Applications with Opening Balance Valuations and Valuation – This should be used with caution as it is an unusual scenario and may cause nominal discrepancies. This will import the Application into the Project and post nominals.  The Opening Balance Valuation won’t post any of the nominal movements and the system will assume that the invoice/credit note and receipt will already be processed the sales ledger.  The Valuation element will post the nominal movements and be ready for printing and posting. If the Application includes Retention these will also be created with the respective nominal postings.  If the Application includes Discounts these will also be posted to the default Discounts Nominal.

Generating a Template

To start the process, you are going to select Sicon Construction>Customer Applications>Import Customer Applications,

the following window will be displayed:

To start the process, click the Generate Template, the system will prompt you to save the file as a CSV.  Choose a suitable location and click Save.  If you have Excel installed the file with then automatically open.  If you don’t have Excel installed (e.g. you are on the Server) you can then copy the file or used your nominate program to edit the CSV file.

The CSV file will contain some Sample data following the examples outlined above and you can find the full list of columns available outlined below:

The compulsory fields are displayed in orange:

Grouping

The Customer Application Import is design to allow multiple nominal lines, to allow multiple combinations you might require such as, different Nominal Codes, Nominal Narrative, Tax Codes, Project Headers, Phase, Stages and Activities.

The screenshot below highlights the grouping criteria that the import will use to group the multiple lines together.  If the Project, Customer, Application Date and Second Reference are the same the import will assume you are trying to group multiple lines together in one Application (and potentially Valuation too).  As the import is handling multiple lines it is expecting certain fields to have the same information when the Grouping Fields are the same.  The import will validate the fields below are the same

• Expiry Date
• Project Manager
• Valuation Date
• Pay Less Date
• Payment Due Date
• Risk Amount
• Discount Percent
• Discount Value
• Retention 1 Percent
• Retention 1 Value
• Retention 1 Due Date
• Retention 2 Percent
• Retention 2 Value
• Retention 2 Due Date
• Retention 3 Percent
• Retention 3 Value
• Retention 3 Due Date
• Retention 4 Percent
• Retention 4 Value
• Retention 4 Due Date
• Notes
• Exchange Rate
• Apply Discount First
• Application Is Opening Balance
• Valuation Opening Balance Posts to Projects
• Automatically Create Valuation
• Valuation Reference

We can see this reflected in the below example import file, the highlighted lines are grouped together by the Customer Reference, Project Number, Application Date and Second Reference.  This created the above application with multiple lines. (Note: Some fields in the Excel have been hidden to for demonstration purposes).

The Import

Once you have populated the import file, we can use the Customer Application Import to Validate the file.  Make sure your file is save down as a CSV file as this is the format that is required for the Import.

From the Sales Application Import Window select ellipsis (the three dots) situated in the top right-hand corner of the window and navigate to the file you have now populated with your Application information.

You can now validate the import file by clicking the Validate button at the bottom of the Window.  The Import will then process the import file and check for any validation issues.  If failing validation messages will appear on the messages tab stating where and what the validation error is.  You will also be prompted “Validation Errors have been found, would you like to process and separate the successful records?”.  If you choose yes, it will prompt you for a new file location to save its Successful and Failed rows. Caution, selecting yes will import all successful validated rows and this may cause an issue if you using Grouping for multiline Applications.

Selecting No will allow you to edit the incorrect data and revalidate the import.

If you did select No, on the Data tab will show you the Import file with highlighted cells showing you where the validation failed.  You can use the filter “Filter by errors” so the import only shows you rows where there are failures.  Hovering over a Red Cell will explain where the validation has failed and give you information on how this can be fixed.  Some examples and solutions on the failures in this example:

• Mandatory but no values specified – Mandatory field must be populated
• Invalid Type, should be Yes/No or True/False – System not receiving expected field type
• Retention 1 Percent does not match other lines in this application group – Retention isn’t matching other lines in the group.
• You can only enter Retention Percentage or Retention Value. Please leave one of the blank. – This is actually the cause of the previous error. Removing the 5 from the Retention 1 Percent column will resolve both errors as a Value is specified.

Under Data tab, the Import becomes editable so rather than opening the CSV file you can edit directly in the import.  Here we can update the Apply Discount First column to be Yes, No, True or False and I can edit the Retention 1 Percentage to remove the 5 so the file can validate.

Prior to revalidating the file, we can Save the Changes by clicking the Save Changes button. If the CSV is open in another Program (e.g. Excel) is won’t be able to write back to the file, however if it is open the changes will be save back to the CSV file.  If you go to validate without saving changes the system will prompt you to Save.

Once the system is happy and all lines in the import file are validated, on the message Tab you will get the message “Validation completed successfully: X records validated.”  This is when the Import button becomes active and the file can be imported into the system.

Once you click the import the system will keep you updated with progress with the Progress Bar at the bottom of the Window.  If you are importing Applications and/or Valuations that are updating the nominal, there will be an extra pop-up when the nominal posting is happening.

Once finished, the Import button becomes inactive and the import displays the message Import completed successfully. You can now close the Window as you Applications and Valuations have been imported successfully.

10.2. Import Supplier Applications

The application import is only relevant if you have existing projects that have been added to the system. These must be done first. Applications cannot be imported if you are creating new projects. These should be added through the Supplier Application Ledger once the projects have been created.

You are ideally going to import the applications where you have a total applied for and part of the application has been valued. The valued portion will be an opening balance valuation. This means that no invoices will be generated for the portion already valued. This will leave the difference between the total applied for and the total amount valued as the outstanding amount awaiting valuation.

To start the process, you are going to select Sicon Construction>Supplier Applications>Import Supplier Applications,

the following window will be displayed:

To start the process, click the Example Import file button, again noting that if excel is not installed on the machine where you are trying to launch the files from then no files will be opened. No warning message is displayed.

The two files will be opened as Book 1 and Book 2, where Book 1 is the import template and book 2 is the Supporting data file. Examples are shown below:

Book 1

Book 2

The full list of columns available are shown below. The compulsory fields are displayed in orange:

Once you have populated the Import file save the file down.

From the Application Import Window select Find (situated in the top right-hand corner of the window) and select the file you have populated.

You will then need to click the Check File button to run the validation. Note that the Import button in the bottom left-hand corner of the screen is greyed out. This will remain greyed out until the validation has been run and successfully passed. This is to prevent the import of any incorrect information.

Any errors will be highlighted in red, and the issue shown in the column on the left-hand edge of the screen, an example is shown below:

Once the validation has been successfully passed the Application Import Window will look like the example below:

Click Import to begin the import process, a progress bar will display during the import:

Once the import has completed the data will no longer be displayed on the Application Import window. This can now be closed.

10.3. Import Application Forecasts

Application forecast allows you to create a forecast profile that can be used in Sicon Projects (for full details please see the Sicon Projects Help & User Guide – Section ##). This is separate to the budgeting process. This can also be used to set budgets for the expected revenue to be received for the project. The import is accessed from Sicon Construction>Applications>Import Application Forecasts

The Application Forecasts Import window will be displayed:

To start the process, click the Example Import file button, again noting that if excel is not installed on the machine where you are trying to launch the files from then no files will be opened. No warning message is displayed.

The two files will be opened as Book 1 and Book 2, where Book 1 is the import template and book 2 is the Supporting data file. Examples are shown below:

Book 1

Book 2

The full list of columns available are shown below. The compulsory fields are displayed in orange:

Once you have populated the Import file save the file down.

From the Application Forecasts Import Window select Find (situated in the top right-hand corner of the window) and select the file you have populated.

You will then need to click the Check File button to run the validation. Note that the Import button in the bottom left hand corner of the screen is greyed out. This will remain greyed out until the validation has been run and successfully passed. This is to prevent the import of any incorrect information.

Any errors will be highlighted in red and the issue shown in the column on the left hand edge of the screen:

Once the validation has been successfully passed the Application Import Window will look like the example below:

Click Import to begin the import process, you will be prompted if you wish to set the total of the forecast to revenue budget.

In projects the revenue budget will have been set as shown below:

The application forecasts will appear as a separate tab when you are amending the project.

Note that Project must be set to bill using Applications for the tab to appear.

10.4. Import Retentions

Retentions can be imported as live or as Opening Balance transactions. These will be displayed on the Retentions Ledger only and are entirely separate from retentions that are linked to applications.

Note that if you are importing Retentions that you intend to release via applications then these need to be imported with applications.

If you wish to import retentions that are linked to Applications these will need to be done using the Applications Import, see the Importing Customer Applications and  Importing Supplier Applications Sections of this Help & User Guide.

The import also allows you to create corresponding Sage transactions that will appear on either the Sales or Purchase Ledger.

From the Retentions menu select Import Retentions.

The Import Retentions window will be displayed.

To start the process, click the Example Import file button, again noting that if excel is not installed on the machine where you are trying to launch the files from then no files will be opened. No warning message is displayed.

The two files will be opened as Book 1 and Book 2, where Book 1 is the import template and book 2 is the Supporting data file. Examples are shown below:

Book 1

Book 2

The full list of columns available are shown below. The compulsory fields are displayed in orange:

Once you have populated the Import file save the file down.

From the Import Retentions Window select Find (situated in the top right-hand corner of the window) and select the file you have populated.

You will then need to click the Check File button to run the validation. Note that the Import button in the bottom left-hand corner of the screen is greyed out. This will remain greyed out until the validation has been run and successfully passed. This is to prevent the import of any incorrect information.

Any errors will be highlighted in red, and the issue shown in the column on the left-hand edge of the screen

Once the validation has been successfully passed the Import Retentions Window will look like the example below:

Click Import to begin the import process, a progress bar will display during the import:

An example of the retentions ledger once the transactions have been imported is shown below:

10.5. Import Subcontractor Purchase Orders

You are able to import Subcontractor purchase orders. You can use the import if you have a large number of orders and/or lines as this will speed the process of entry up. For full details or working with Subcontractor Purchase Orders please refer to Section 7 – Subcontractor Purchase Orders.

To access the Import, you go to Subcontractor Purchase Orders>Import Subcontract Purchase Orders

The Import Subcontractor Purchase Orders window will be displayed:

To start the process, click the Example Import file button, again noting that if excel is not installed on the machine where you are trying to launch the files from then no files will be opened. No warning message is displayed.

The two files will be opened as Book 1 and Book 2, where Book 1 is the import template and book 2 is the Supporting data file. Examples are shown below:

Book 1

Book 2

The full list of columns available are shown below. The compulsory fields are displayed in orange:

Once you have populated the Import file save the file down.

The screenshot below shows a simple completed import file:

From the Import Subcontractor Purchase Orders Window select Find (situated in the top right-hand corner of the window) and select the file you have populated.

Note that the Ignore first row is ticked by default. This is due to the import file having the column headers as the first row.

You will then need to click the Check File button to run the validation. Note that the Import button in the bottom left-hand corner of the screen is greyed out. This will remain greyed out until the validation has been run and successfully passed. This is to prevent the import of any incorrect information.

Any errors will be highlighted in red, and the issue shown in the column on the left-hand edge of the screen:

Once the validation has been successfully passed the Import Subcontractor Purchase Orders Window will look like the example below:

Click Import to begin the import process, a progress bar will display during the import:

Once the import has completed the data will no longer be displayed on the Import Subcontractor Purchase Orders window. This can now be closed.

The imported order can be by viewed in the Subcontractor Purchase Orders list, an example of the list view and order are shown below:

Subcontractor Purchase Orders List

Purchase Order

10.6. Import Sales

You are able to import Construction Sales orders including Quotes. You can use the import if you have a large number of orders and/or lines as this will speed the process of entry up. For full details or working with Construction Sales Orders please refer to Section 6 – Construction Sales Orders.

Please note that to use Construction Sales Orders the project(s) you are importing orders against must be set to use Applications as the Billing process. For more details please refer to Project Settings Section of this Help & User Guide.

To access the Import you go to Sales Orders>Construction Sales Order Import

The Import Sales Order window will be displayed:

To start the process, click the Example Import file button, again noting that if excel is not installed on the machine where you are trying to launch the files from then no files will be opened. No warning message is displayed.

The two files will be opened as Book 1 and Book 2, where Book 1 is the import template and book 2 is the Supporting data file. Examples are shown below:

Book 1

Book 2

The full list of columns available are shown below. The compulsory fields are displayed in orange:

The below example shows how to structure lines for Quotes and Templates:

Once you have populated the Import file save the file down.

From the Import Subcontractor Purchase Orders Window select Find (situated in the top right-hand corner of the window) and select the file you have populated.

Note that the Ignore first row is ticked by default. This is due to the import file having the column headers as the first row.

You will then need to click the Check File button to run the validation. Note that the Import button in the bottom left-hand corner of the screen is greyed out. This will remain greyed out until the validation has been run and successfully passed. This is to prevent the import of any incorrect information.

Any errors will be highlighted in red, and the issue shown in the column on the left-hand edge of the screen:

Once the validation has been successfully passed the Import Sales Orders Window will look like the example below:

Click Import to begin the import process, a progress bar will display during the import:

Once the import has completed the data will no longer be displayed on the Import Sales Orders window. This can now be closed.

The imported order can be by viewed in the Construction Sales Orders list, an example of the list view and order are shown below:

Construction Sales Orders List

Sales Order

11. Legacy Customer Applications

A Customer application for payment is a construction document that outlines how you will be paid.  The application for payment would generally include documentation outlining what services and materials were used on the Project.  The document would include materials used, unit prices and quantities of each and any Labour used.  This is generally supplied as backing documentation to the Sicon application.  The application itself provides both the owner and the contractor (you as the Customer application) a method of controlling what items or materials have been provided by the contractor.

11.1. New Applications

The following screen allows you to enter Customer Applications.   You have to start by entering a Project from the Current Project List, you can add further filters is required such as Customer, Application date, Valued date, Project Header, Project Manager or Invoice / Credit Note number, Reference, Status or Currency.

Note: The Status is set to ‘Open’ by default, meaning Applications that are Paid or only have retentions remain are not shown.

Once you have entered a Project the Customer Application Screen will display all Open Applications related to that Project.  Selecting an Application from the Outgoing Application selection will show all related Valuations in the Application Valuations Transactions section.

To create a new Application, click the Add button in the middle of the window, which opens the New Outgoing Application Window.

Account Details:

Project Number – Automatically populated from the main screen.

Customer details – This will be automatically populated from the Project (if populated) or can be selected from the Customer lookup fields (Code, Short Name or Postcode).

Project Manager – This will automatically populate from the Project (if populated) or can be selected from the drop-down list or Manually typed.

Project PO Number – Populated from the Project if set (this cannot be amended or entered here).

Reference Details:

Application Date – The date of the Application, will default to today’s date.

Expiry Date – A date that the Application will Expire.  For reporting purposes only,

Valuation Date – A date the Application is expected to be Valued.  For report purposes only.

Pay Less Date – The date you must be notified of a Pay Less notice:

https://www.designingbuildings.co.uk/wiki/Pay_less_notice_for_construction_contracts

Reference – Combination of the Project number and Application number which is system generated if the auto application number generation (by Project) is turned on

2nd Reference – Free text field to record an Internal or External Reference number

Query Flag – Flag that allow a user to set the Application on query.

Group – The ability to Group Applications together.  For example, where a Project, may have multiple Customers, or to Group Applications from a specific phase of a build.  The Cumulative figure will be calculated per Group.  By default, the group is set to ‘Default’.

Application Values Tab:

Cumulative Gross – Total Gross value for all applications for the Project and Customer.  If using Groups, then it calculated the total figure for the Group.  If the Cumulative Gross is updated, this will update the Gross Application

Cumulative Retentions – Total Retention value for all applications for the Project and Customer.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Cumulative Discount ­– Total Discount value for all applications for the Project and Customer.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Cumulative Payable – The total amount payable for all applications for the Project and Customer.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Cumulative Tax Value­ – Total Tax value for all applications for the Project and Customer.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Gross Application – The total Gross value being applied for this Application.  If this is update, then the Cumulative Gross is updated.

Retentions Total – Total Retentions for the Application.  This is updated from the Deductions Tab.  Not editable

Value Payable – Total amount payable for this Application.  Gross Application – Retentions Total.  Not editable.

Tax Value – Total Tax value for the Application.  This is calculated from the Tax Value of the detail lines under Nominal Analysis.  Not editable

Discount % – Discount percentage for the main contractor that should be applied to the Application.  This can be applied before or after any other deductions (e.g. Retention).  This will populate the Discount Value Field.

Discount Value – Discount value for the main contractor that should be applied to the Application.  This can be applied before or after any other deductions.  This will populate the Discount % Field.

Risk Amount – This is a way to record on risk on the applied for value and is for reporting purposes only.  (e.g. If you are applying for 10,000 but realistically expecting the Valuation to be 8,000 the Risk Amount would be 2,000)

Nominal Analysis – This allows you to break down the Application into Multiple lines, either based on Project Header, Project Level, Nominal, Narrative or Tax Code.  The total must equal the Value Payable.  If there are Retentions being held on the Application these will be shown as negative lines on the Nominal Analysis.  This will allow you to split the Retention to different Tax codes if required.

Valuation Detail – This tab shows you current valuations against the Applications as well as the Cumulative.  The Cumulative will be based on the Project and Customer or the Group.

Accumulations Tab:

Accumulations – Displays all Applications related to the Project.  This isn’t dependant on the Group.

Note Tab – Note tab allows the recording of Notes against the Application.  These notes will appear on the Valuation Invoice when it is produced

Deductions Tab:

Retentions – The type of retentions you are retaining against the Application.  These are used to break down the types of Retention which will be taken off the whole Applications (or default through to the Valuation).  The different types of retention are used for filters on the Retention Release.  When adding a retention for the first time, these will add the retention lines to the Nominal Analysis section.  You can set defaults on the Project which will automatically add the retention percentages to the Application(s)

Retention % – Used to record the Retention Percentage on the Gross Application.  Will update the Retention Value

Retention Value – Used to record the Retention Value for the Application.  Will update the Retention %

NOTE: The retention amount on the Application will be generated and be available to be released at a later date.  Adjusting the Retentions value on the application will adjust the retention created.  In order to release retention please see Retention Release

Due Date – The due date of the Retention Release.  The due date is for reporting purposed and will be used on Retention filters.  The Due Date is also a compulsory field if a retention value has been added.

NOTE: The retention total is updated on the Applications Values Tab

Memo:

Memo – Adding a memo to the memos tab records any notes made against the Application with a Date, Time and the User that made the note.

Analysis:

Analysis Codes – The Analysis Code available on the Application are configured within the Maintain Invoice and Order Analysis Codes within Sage.

The Analysis Code, first need to be setup within the Maintain Analysis Code in Accounting System Manager

They can then be added to the Maintain Analysis Codes in the SOP Maintenance Menu

When you click Save the Confirm Nominal Postings window will be displayed:

The Nominal Postings window will show the credit to the P & L account that is set against the Project Header. The Applications debtors account will be debited along with the Sales Discount. and where relevant any retentions will all be debited to the Retention Debtors (Applications) account. There is also a debit for the Sales Discount.

The saved application will now be displayed on the Customer Applications window:

11.2. Adding a Valuation to an Application

As the contractor the work applied for is going to be valued by the Customers Project Owners, Quantity Surveyor, Architect or Engineer and presented as a Payment Certificate.  The certificate contains the work approved for payment by the Customer, this is not always equal to the amount applied for.  We enter the payment Certificate supplied by the Customer as a Valuation against the Application.

Using the Customer Application Screen, you can add a Valuation to an Application by highlighting the Application and click the lower Add Button, on the Valuation half of the Window.  If there were any existing Valuations for the Application they would be shown in the Application Valuation Transactions box.

When you click on Add the Valuation the Valuation Window is shown.

Project Number – The Project number is automatically populated from the Customer Application (and the Application). This is not editable.

Customer Details (Code, Short Name, Post Code) – The Code is automatically populated from the associated Application.  This can be overwritten is required.

Project Description – Description of the Project.  This is not editable

Project PO Number – The Project PO Number if stored on the Project.  This is not editable

Reference – The Reference associated to the Valuation Invoice.  This is a required field

Valuation Date – The date of the Valuation, defaulting to today’s date.

Payment Date – A date field when the Payment is expected, defaulting to today date.  This is for reporting purposes only.

Invoice Date – The date of the Invoice.  This is updated when the Invoice is printed

Valuation Type – A selection of Invoice or Credit Note, depending on the Type of Valuation

Opening Balance – This sets the Valuation as an Opening Balance.  An Opening Balance Valuation doesn’t create an Invoice, or update the Nominal (apart from reversing the Application).  The Valuation will automatically be marked as Paid and won’t be editable once it has been saved.  Retention can still be created off the back of an Opening Balance Valuation.

Gross Valuation – The Gross Valuation value for the specific valuation.  This will update the Net Valuation based on whether there are any retention values.

Retention – The Retention value based on the Gross Valuation and retention(s) from the deduction tab.  This is not editable on the valuation window but can be edited from the Deductions tab.

Net Valuation – The Net Valuation value for the specific valuation.  If the Net Valuation is entered, this will update the Retention and Gross values.

Discount % – Percentage main contractor discount percentage.  This will calculate the Discount Value based on the Gross value.  The Apply Discount first option, controls whether the discount is added before or after any deductions.

Discount Value – The main contractor discount value.  This will calculate the % value is entered.  The Apply Discount first option, controls whether the discount is added before or after any deductions.

Invoice Narrative – The Invoice Narrative appears on the Invoice.  This can be used to describe the work carried out so it appears on the Invoice.

Project Summary:

Application Gross – Total of the Application based on Project and Customer or the Application Group.  This is pulled from the related Application.

Application Net – The Application net value based on the Project and Customer or the Application Group.  This is pulled from the related Application.

Outstanding – The outstanding Gross amount remaining on the Application.  This is the Application Gross minus all associated Valuations.

Outstanding Ret – The outstanding Retentions remaining on the Application. This is Application Retentions minus the Valuations retentions plus retentions added from this valuation.

Outstanding Net – The outstanding Net amount remaining on the Application.  This is the Application Net minus all associated Valuations.

Note that info dots have been added to provide an explanation of how the figures have been calculated.

Valued to Date – Total Valuations to date including the current Valuation

Nominal Analysis – This allows you to break down the Application into Multiple lines, either based on Project Header, Nominal, Narrative or Tax Code.  The total must equal the Gross Application.

When you click Save the Confirm nominal Postings window will be displayed:

Showing the movements from the Applications debtors account to the Valuation Debtors account.

11.3. Generate Invoices and Receipts

In order for the Invoice to be generated against the Customer, a Valuation must be entered first.  The Valuation is the agreed amount the Customer is going to pay and the Invoice is generated directly from the Valuation.  There are a number of ways you can generated the Invoice, which can be controlled from the Sage user role.  As an example, you might want the Project Owner to enter the Application and Valuation but leave the Invoice creation to the Finance team.

Prior to Posting the Invoice, the Valuation must be printed.  From the Customer Application, highlighting the Valuation, click the Print Invoice Button:

Prior to the Invoice printing you will need to confirm the Invoice Date, which will default to today’s date.  Once confirmed an Invoice will be produced.

11.4. Post Valuation Invoice / Credit

After printing the Invoice (or Credit Note), the system will allow you to post the Invoice and Receipt.  This again can be done from the Customer Applications Screen as outlined below.  Often, but under specific circumstances the Posting of the Invoice is held until the Money agreed to be paid is in the bank so both the Invoice and the Receipt are posted at the same time.

Alternatively, you can post Valuation from the Sage Menu.  This screen will allow you to either Post for a Single Document Number, Single Job or All Jobs.
Single Document Number: Select a specific Project and Document Reference to post
Single Projects: Select a specific Job and choose the Document you want to post
All Projects: Prompt display all Documents to choose what to post.

You can also Post the Invoice and Credit Notes, Payments & Receipts or Both at the same time.

The example below will take you through posting both and Invoice and Receipt using the All Jobs option.

You will display a list of all printed Invoices or Credit Notes allowing you to select the ones you would like to Post.

Once the Invoice or Credit has been posted you are then prompted to select the Bank the Receipt or Payment is being processed to/from.  If you were just posting the Receipt or Payment you would be prompted with this screen only.

11.5. Retentions Release

When it comes to releasing any retention held there is the ability to release this as part of another application or as a Retention Release Application.

Retention Release included with an Application

The first option, is typical of the retention release as practical completion.  This would be included as part of a ‘final application’ and release part of the retention held against ‘practical completion’.

In order to release Retention as part of an Application, you first need to add an Application.  An Application has been added, which also included further retention, but this time the retention being held is only against the Defects, so a total of 2.5%.

This Application would then be certified (although the likely hood is the Final Application value had already been agreed prior to the Application).

A Valuation would be added as a standard Valuation, however on the deductions tab you would add a value in the Retentions Release filed:

Once, that has been added, you need to select a Retention previously created to release by pressing the ‘Select Retentions’ button.

You will then be prompted to select retentions from the Retentions Ledger, which displays a list of retentions that have been created against the Applications for the Project.  As we releasing the retention against ‘Practical Completion’ this is already pre-filtered into the retentions type filter (this can be changed if required).

Once you have selected all the retentions that require releasing, press the release button.

Once the retention has been selected for release, this will add a Retention Release line to the Valuation.  For this example, we have the following:

Gross Valuation: 10,000
Retentions Held: -250
Retentions Release: 500
Net Valuation: 10,250

You would then post the Valuation Invoice with the Retention Release.

The Result of this would leave both Application with just Retentions waiting to be release for Defects on both Application 1 and 2.

Once you click release and Save the Current Nominal Postings window will be displayed:

Showing the credit for the Application Debtors and Retentions Debtors account and the debit to the Valuation Debtors.

Releasing Retentions Only

When it comes to the release of the defect retention or just releasing retentions without an application, the release retention option can be used.  When looking at the Customer Applications screen not all applications will be show so you may have to change the Status filter to All or Retentions Only.  The default filter will only show Open Applications.

On this Project there is 1000 remaining on the Retention which need to be release.  After click the Release Retention button enter the amount that is being released (this again may have already been agreed between the QS or PM)

The same a releasing a Retention via Application you are then prompted to select which retention are being released.  In this instance I am selecting more than one Retention to release ensuring the Total to Release value is the same as the Total Retentions Selected.

The system will then create a Retention Release Application and corresponding Valuation.

The Invoice can then be printed, posted and receipted as a standard valuation

11.6. Reversing a Valuation

If a Valuation has been created or even posted in error, this can be easily reversed and will create the corresponding Credit/Debit to correct it.

Within Customer Applications select the Project Number, highlight the required line from the Outgoing Applications which will show the corresponding Valuation then click the Reverse Valuation button.

A message box will be displayed asking you to confirm the reversal.  This explains that if you have already posted the Invoice and/or Receipt to the Customer Ledger account, then it will create and post the reversing transactions (Credit Note and Payment).

Once confirming that you want to continue another prompt will appear to confirm the date of the reversal.  Change the Date to reflect the original valuation invoice, or the date you require the reversal to be posted – click OK.

This will create a Credit Note and Payment where applicable.  If creating a posting

To check these postings, you can open the Customer Transaction Enquiry screen by clicking the Transaction Enquiry button.

Note: These Credits do not need to be posted via the Post Valuations screen they are done automatically; you only need to allocate them.

11.7. Final Applications

At the end of the Project or when the Project is coming to an end and the final application has been finalised with the Customer there are number of options.

1. Create a Final Application to write down any unpaid applications and create an application of the final agreed amount

In the Customer Application screen, with the Project select, click the Final Application button:

This will load the Final Application Window.  This will show you the outstanding amount remaining against all open applications, the New Gross Application Column will show the current application value on load.

When you select an Application Line, this automatically update the New Gross Application Value to equal the current Valuations that are allocated against that Application.  This New Gross Application can be updated if required to be the Final Application Value.  In this example, there isn’t going to be any further Valuations against the Applications so we are reducing the remain balances to equal the current Valuation.

Once the new values are accepted, you can then allocate the new Gross and Retention Values to the Nominal Lines.  The screen will show you the New Gross Total, New Net Total and Remaining Retention Value to advise you of what is required.

Once you confirm the amended values, the Application are then updated with their new Gross Application Value.  In this instance the Status of the Application move to ‘Retention Only’ as they are only waiting a Retention release.

11.8. Opening Balance Valuations

Opening balance valuations are predominately used to show the opening valued amount when bringing over certified applications from another system.  Doing this also ensures you have the correct Opening Balance Retentions on Projects

In this example, there have been 2 previous application prior to moving over to Sicon Construction with a cumulative application value of 62,000, as the history of the individual applications isn’t required a single application for 62,000 has been entered.  This also creates any retentions they would have been outstanding.

As part of this Project, 54,000 had already been valued and posted to the Sales Ledger as an Invoice, thus only requiring the outstanding balance of 8,000 (including Retention) to be valued at a later date.  When adding the Valuation Certificate for this, we are using the ‘Opening Balance’ flag.  This tells the system that nothing is further needed with this Valuation, no nominal posts are made, and no Invoice or Receipts are created off the back of it.

The Confirm Nominal Postings will not be displayed as there are no nominal posting generated as a result of the Valuation.

11.9. Writing off Applications

There are a number of different methods of writing off Application values depending on the scenario.  If you are reducing down the outstanding Application values to prepare a Final Application then you can use the Final Application option.

If you are reducing down the Application of a specific Application as the value is never to be received, you can edit an Application and reduce the gross Application value to be what is required.  As an example, previously, we had an opening balance Application for 62,000 and a Certified value of 54,000.  The 8,000 difference isn’t going to be received, so we can edit the Application and reduce the gross application value to 54,000.  At this point, you would also need to adjust the nominal analysis to match the new Application Value

If this reduced the Application to the amount that has Valued, then the Application Status, is either moved to ‘Retentions Only’ if there are outstanding Retentions, or Paid if not.

Another method of writing off an application is to enter a negative Application.  This method is ideal if the Valuation has already been Invoiced.  As an example, an Application has been added for 20,000 and been Valued and Invoiced.

A negative Application is then added to the Project for the amount that is being written off.  In this instance, it is a full reversal of 20,000.

You would then need to Value this Application using the Credit Note option, which would also need to be printed and Posted to reverse off the Invoice Post to the Customer Ledger.  This has an impact of the cumulative values of the Project reducing the cumulative value applied for.

Another option available if an Application was added incorrectly, is to delete the Application.  You are able to Delete applications if they have not been valued.  This will delete any Retentions created related to that Application.

The system will prompt prior to removing the Application.  Selecting ‘Yes’ will remove the Application.

NOTE: Deleting an Application will consume an Application Reference.  In the example, P00007/AP0005 would be the next Application Number

The Confirm Nominal Postings window will be displayed showing the debit from the P & L nominal account and the credit to the Application debtors.

11.10. Writing off Valuations

If a Valuation has been entered incorrectly, similar to writing off Application there are a number of scenarios and methods that can be used, which can be dependent on the current status of the Valuation.

If a Valuation had been entered against an Application, and the Values or References where incorrect prior to posting the Invoice to the Sales Ledger, you can edit and amend the Valuation.  Highlighting and click Edit Allows you to do this.

Once the Valuation has been printed, certain values cannot be changed.  As an example, on printing the Invoice No. is reserved for when you post the Invoice and the Invoice date is set.  If the Invoice date is incorrect at this point, then you can delete the Valuation and re-enter, however the Invoice No. would be consumed.  You can still Edit the Valuation and change the values and re-print the Invoice at this point.

If you want to record and audit type trail of the Valuations that have been entered, rather than Deleting and re-entering, you can use the Reverse the Valuation using the Reverse Valuation Button.

The system will then create a Credit Note for the incorrectly posted Invoice.

If the Invoice had been printed and post and you need to correct, you will always need to use the Reverse Valuation option.  In this instance the routine, will also post a credit note to the Customer Account.  If the Payment for the Invoice had also been Posted, this routine will also Post the Receipt.

11.11. Writing off Retentions based on Applications

The Retention Value is created in the system based on the Application.  In some cases, the Valued amount on the Application, is going to be the total amount received for the application and thus the relevant retention.  In this instance, editing and reducing the Application and Retention Values will reduce the Retention amount held.

If the case is that you have a Valued Retention value that isn’t going to be received or you want to write off part of a Retention, then the following steps will remove the Retention from you Retentions Ledger.

The first step is actually releasing the Retention, using the Release Retentions button on the Customer Application.

You then want to add the Retention amount you want to write off.

Once you have entered the amount you want to write off then you are shown the Retention Ledger and the Retention values currently associated to the Project.

Select the Retention you want to write off and adjust the Released Amount where applicable and select Release.

This will create a Retention Release Application with an associated Valuation.

You will then want to Edit the Associated Valuation, mark the Valuation as an Opening Balance and if required, make a comment on the Narrative that this is a Retention Write Off.  As the Valuation and Associated Retentions are now mark as opening balance the don’t have an impact on the Application apart from reducing the balance on the Project.

12. Legacy Supplier Applications

A Supplier application for payment is a construction document that outlines how your suppliers will be paid.  The application for payment would generally include documentation outlining what services and materials were used on the Project.  The document would include materials used, unit prices and quantities of each and any Labour used.  This is generally supplied as backing documentation to the Sicon application.  The application itself provides both the owner (you) and the contractor (as the Supplier application) a method of controlling what items or materials have been provided by the contractor.

12.1. New Applications

The following screen allows you to enter Supplier Applications.   You have to start by entering a Project from the Current Project List, you can add further filters is required such as Supplier, Application date, Valued date, Project Header, Project Manager or Invoice / Credit Note number, Reference, Status or Currency.

Note: The Status is set to ‘Open’ by default, meaning Applications that are Paid or only have retentions remain are not shown.

Once you have entered a Project the Supplier Application Screen will display all Open Applications related to that Project.  Selecting an Application from the Incoming Application selection will show all related Valuations in the Application Valuations Transactions section.

To create a new Application, click the Add button in the middle of the window, which opens the New Outgoing Application Window.

Account Details:

Project Number – Automatically populated from the main screen.

Supplier details – This is a lookup to the Sage Supplier list; a Supplier must be selected in order to continue with the Application.  Unlike the Customer Application this does not default from the Project and must be selected every time. This is due to the possibility that you may have multiple suppliers making applications against the project.

Project Manager – This will automatically populate from the Project (if populated) or can be selected from the drop-down list or Manually typed.

Project PO Number – Populated from the Project if set (this cannot be amended or entered here).

Reference Details:

Application Date – The date of the Application, will default to today’s date.

Expiry Date – A date that the Application will Expire.  For reporting purposes only,

Payment due Date – The date the contracted payment is due.  For reporting purposes and get be selected from the date lookup.

Reference – Combination of the Project number and Application number which is system generated if the auto application number generation (by Project) is turned on .  The numbering is per Supplier so multiple Subcontractors against the Project can have an Application number 1, 2 etc.

2nd Reference – Free text field to record an Internal or External Reference number

Query Flag – Flag that allow a user to set the Application on query.

Group – The ability to Group Applications together.  For example, where a Project, may have multiple Customers, or to Group Applications from a specific phase of a build.  The Cumulative figure will be calculated per Group.  By default, the group is set to ‘Default’.

Exchange Rate: Will only be displayed for any Supplier that is set up in anything other than the default currency of your system. The behaviour of the application will change also, as the suppliers default currency is displayed on the Gross and retention values:

Supplier in same currency as your system

Supplier where base currency differs:

Invoice / Ext App No – Used to record the Supplier Application Number or the Supplier Invoice number depending on the type of document that has been sent.

Default QS – This will automatically populate from the Project (if populated) or can be selected from the drop-down list or Manually typed. For details of where this is set please refer to the Sicon Projects Help & User Guide.

Application Values Tab:

Cumulative Gross – Total Gross value for all applications for the Project and Supplier.  If using Groups, then it calculated the total figure for the Group.  If the Cumulative Gross is updated, this will update the Gross Application

Cumulative Retentions – Total Retention value for all applications for the Project and Supplier.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Cumulative Discount ­– Total Discount value for all applications for the Project and Supplier.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Cumulative Payable – The total amount payable for all applications for the Project and Supplier.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Cumulative Tax Value­ – Total Tax value for all applications for the Project and Supplier.  If using Groups, then it calculated the total figure for the Group.  Not editable.

Gross Application – The total Gross value being applied for this Application.  If this is update, then the Cumulative Gross is updated.

Retentions Total – Total Retentions for the Application.  This is updated from the Deductions Tab.  Not editable

Value Payable – Total amount payable for this Application.  Gross Application – Retentions Total.  Not editable.

Tax Value – Total Tax value for the Application.  This is calculated from the Tax Value of the detail lines under Nominal Analysis.  Not editable

Discount % – Discount percentage for the main contractor that should be applied to the Application.  This can be applied before or after any other deductions (e.g. Retention).  This will populate the Discount Value Field.

Discount Value – Discount value for the main contractor that should be applied to the Application.  This can be applied before or after any other deductions.  This will populate the Discount % Field.

Risk Amount – This is a way to record on risk on the applied for value and is for reporting purposes only.  (e.g. If you are applying for 10,000 but realistically expecting the Valuation to be 8,000 the Risk Amount would be 2,000)

Nominal Analysis – This allows you to break down the Application into Multiple lines, either based on Project Header, Project Level, Nominal, Narrative or Tax Code.  The total must equal the Value Payable.  If there are Retentions being held on the Application these will be shown as negative lines on the Nominal Analysis.  This will allow you to split the Retention to different Tax codes, Project Headers or Phase, Stage, Activities if required.

Valuation Detail – This tab shows you current valuations against the Applications as well as the Cumulative.  The Cumulative will be based on the Project and Supplier or the Group.

Accumulations Tab:

Accumulations – Displays all Applications related to the Project.  This is not dependant on the Group.

Note Tab – Note tab allows the recording of Notes against the Application.  These notes will appear on the Valuation Invoice when it is produced

Deductions Tab:

Retentions – The type of retentions you are retaining against the Application.  These are used to break down the types of Retention which will be taken off the whole Applications (or default through to the Valuation).  The different types of retention are used for filters on the Retention Release.  When adding a retention for the first time, these will add the retention lines to the Nominal Analysis section.  You can set defaults on the Project which will automatically add the retention percentages to the Application(s)

Retention % – Used to record the Retention Percentage on the Gross Application.  Will update the Retention Value

Retention Value – Used to record the Retention Value for the Application.  Will update the Retention %

NOTE: The retention amount on the Application will be generated and be available to be released at a later date.  Adjusting the Retentions value on the application will adjust the retention created.  In order to release retention please see Retention Release

Due Date – The due date of the Retention Release.  The due date is for reporting purposed and will be used on Retention filters.  The Due Date is also a compulsory field if a retention value has been added.

NOTE: The retention total is updated on the Applications Values Tab

CIS: This is only shown if the Supplier is marked as a CIS subcontractor within the system

Remaining net Value – This shows the total value of the Application less any deductions.  CIS will be calculated on Retention, once the retention is released.

Labour – The total value of the application that is applicable for deduction.  Depending on whether CIS is setup for nominal splits (labour and material based on nominal used) or Supplier splits where you can enter a percentage or Labour Value.  In the example the system is setup to use nominal splits so the Labour element is disabled

Other – Shows the value of non-Labour and non-Material lines on the Application

Material – The remaining amount on the Application is then classed as Material

CIS applicable value – Calculated field to show the value application for CIS deduction.

CIS rate – The CIS deductible rate for the Subcontractor selected on the Supplier Application

CIS due – The total amount of CIS due calculated from the CIS applicable value and the CIS rate.

Memo:

Memo – Adding a memo to the memos tab records any notes made against the Application with a Date, Time and the User that made the note.

Analysis:

Analysis Codes – The Analysis Code available on the Application are configured within the Maintain Invoice and Order Analysis Codes within Sage.

The Analysis Code, first need to be setup within the Maintain Analysis Code in Accounting System Manager

They can then be added to the Maintain Analysis Codes in the POP Maintenance Menu

When you click Save the Confirm Nominal Postings window will be displayed showing the debits to the P & L Accounts that have been specified against the project headers and the credits for the overall application to the Applications Creditors account and the two retention accounts and Purchase discount.

12.2. Adding a Valuation to an Application

As the contractor the work applied for is going to be valued by your Project Owners, Quantity Surveyor, Architect or Engineer and presented as a Payment Certificate.  The certificate contains the work approved for payment to the Supplier, this is not always equal to the amount applied for.  We enter the payment Certificate supplied to the Supplier as a Valuation against the Application.

Using the Supplier Application Screen, you can add a Valuation to an Application by highlighting the Application and click the lower Add Button, on the Valuation half of the Window.  If there were any existing Valuations for the Application, they would be shown in the Application Valuation Transactions box.

You can add a Valuation by clicking the Add Valuation button, If there were any existing Valuations for the Application, they would be shown in the Application Valuation Transactions box.

When you click on Add the Valuation the Valuation Window is shown.

Project Number – The Project number is automatically populated from the Customer Application Ledger This is not editable.

Supplier Details (Code, Short Name, Post Code) – The Code is automatically populated from the Application.  This can be overwritten if required.

Project Description – Description of the Project.  This is not editable

Project PO Number – The Project PO Number if stored on the Project.  This is not editable

Invoice Number – A free text reference number

QS / Employee – This will automatically populate from the Project (if populated) or can be selected from the drop-down list or Manually typed. For details of where this is set please refer to the Sicon Project Help & User Guide.

Valuation Date – The date of the Valuation, defaulting to today’s date.

Payment Date – A date field when the Payment is expected, defaulting to today date.  This is for reporting purposes only.

Invoice Date – The date of the Invoice.  This is updated when the Invoice is printed

Valuation Type – A selection of Invoice or Credit Note, depending on the Type of Valuation

Opening Balance – This sets the Valuation as an Opening Balance.  An Opening Balance Valuation doesn’t create an Invoice, or update the Nominal (apart from reversing the Application).  The Valuation will automatically be marked as Paid and won’t be editable once it has been saved.  Retention can still be created off the back of an Opening Balance Valuation.

Gross Valuation – The Gross Valuation value for the specific valuation.  This will update the Net Valuation based on whether there are any retention values.

Retention – The Retention value based on the Gross Valuation and retention(s) from the deduction tab.  This is not editable.

Net Valuation – The Net Valuation value for the specific valuation.  If the Net Valuation is entered, this will update the Retention and Gross values.

Discount % – Percentage main contractor discount percentage.  This will calculate the Discount Value based on the Gross value.  The Apply Discount first option, controls whether the discount is added before or after any deductions.

Discount Value – The main contractor discount value.  This will calculate the % value is entered.  The Apply Discount first option, controls whether the discount is added before or after any deductions.

QS Notes – The Invoice Narrative based on any comments added when entering the Valuation and will appear on the Invoice.  This can be used to describe the work carried out so it appears on the Invoice.

QS Reference – This can be used for referencing any paperwork that was used during the valuation process, such as the documents used on site to evaluate the work being valued.

Project Summary:

Application Gross – Total of the Application based on Project and Customer or the Application Group.  This is pulled from the related project.

Application Net – The Application net value based on the Project and Customer or the Application Group.  This is pulled from the related project.

Outstanding – The outstanding Gross amount remaining on the overall applications total Applications.  This is the Application Gross minus all associated Valuations.

Outstanding Ret – The outstanding Retentions remaining on the Application. This is Application Retentions minus the Valuations retentions plus retentions added from this valuation.

Outstanding Net – The outstanding Net amount remaining on the overall applications.  This is the Application Net minus all associated Valuations.

Note that info dots have been added to provide an explanation of how the figures have been calculated.

Valued to Date – Total Valuations to date including the current Valuation

Nominal Analysis – This allows you to break down the Application into Multiple lines, either based on Project Header, Nominal, Narrative or Tax Code.  The total must equal the Gross Application.

When saving the valuation, the Confirm Nominal Postings window will be displayed:

There are no project details displayed as the nominal movements are between balance sheet codes. These are not tied to the project.

The Applications Creditors account will be debited and a corresponding credit to the Valuation Creditors account.

12.3. Generate Certificate

Once the valuation has been entered you are then able to generate the Certificate for the Supplier.  There are a number of ways you can generated the Certificate, which can be controlled from the Sage user role.  As an example, you might want the Project Owner to enter the Application and Valuation but leave the Invoice creation to the Finance team.

Prior to Posting the Invoice, the Certificate must be printed.  From the Supplier Application window, highlighting the Valuation, click the Print Certificate Button:

Prior to the Certificate printing you will need to confirm the Application the Certificate is for. You are also able to add additional information:

• QS Reference
• Approved Date – This is used if you have an approval process for the valuation of the application.
• Notes which are additional to those that appear on the valuation

If no additional details have been added when you click Print the following dialogue box will be displayed:

To warn you that no QS reference has been set.

Click yes if you wish to proceed. If you click No you will be returned to the Print Application Certificate screen and you can add the details as required.

On clicking Yes to Print the Application certificate the following Certificate will be produced. A dialogue box will be displayed to confirm that the printing process is complete:

Once confirmed a Certificate will be produced.

The highlighted panel shows where the information entered on the Print Application certificate window will be displayed.

12.4. Post Valuation Invoice

After printing the Invoice (or Credit Note), the system will allow you to post the Invoice.  This again can be done from the Supplier Applications Screen as outlined below.

Alternatively, you can post Valuation from the Sage Menu.  This screen will allow you to either Post for a Single Document Number, Single Job or All Jobs.
Single Document Number: Select a specific Project and Document Reference to post
Single Projects: Select a specific Job and choose the Document you want to post
All Projects: Prompt display all Documents to choose what to post.

You can also Post the Invoice and Credit Notes same time.

The example below will take you through posting Invoice using the All Projects option.

You will display a list of all printed Invoices or Credit Notes allowing you to select the ones you would like to Post.

Once the Invoice or Credit has been posted you will be displayed a dialogue box saying the Post is complete. This and the Post valuations window will be closed when you click OK

12.5. Retention Release

When it comes to releasing any retention held there is the ability to release this as part of another application or as a Retention Release Application.

Retention Release included with an Application

The first option, is typical of the retention release as practical completion.

In order to release Retention as part of an Application, you first need to add an Application.  An Application has been added, which also included further retention, but this time the retention being held is only against the Defects, so a total of 2.5%.

This Application would then be certified.

A Valuation would be added as a standard Valuation, however on the deductions tab you would add a value in the Retentions Release filed:

Once, that has been added, you need to select a Retention previously created to release by pressing the ‘Select Retentions’ button.

You will then be prompted to select retentions from the Retentions Ledger, which displays a list of retentions that have been created against the Applications for the Project.  As we releasing the retention against ‘Practical Completion’ this is already pre-filtered into the retentions type filter (this can be changed if required).

Check the box against the relevant retention that you want to release. The Released amount has been automatically populated:

Once you have selected all the retentions that require releasing, press the release button.

Once the retention has been selected for release, this will add a Retention Release line to the Valuation.  For this example we have the following:

Gross Valuation: –5000
Retentions Held: -125
Retentions Release: -125
Net Valuation: 10,250

You would then post the Valuation Invoice with the Retention Release.

The Result of this would leave both Application with just Retentions waiting to be release for Defects on both Application 1 and 2.

Releasing Retentions Only

When it comes to the release of the defect retention or just releasing retentions without an application, the release retention option can be used.  When looking at the Supplier Applications Ledger screen not all applications will be show so you may have to change the Status filter to All or Retentions Only.  The default filter will only show Open Applications.

On this Project there is 750 remaining on the Retention which I want to release.  After click the Release Retention button enter the amount that is being released (this again may have already been agreed between the QS or PM)

The same a releasing a Retention via Application you are then prompted to select which retention are being released.  In this instance I am selecting more than one Retention to release ensuring the Total to Release value is the same as the Total Retentions Selected.

The system will then create a Retention Release Application and corresponding Valuation.

The Invoice can then be printed, posted and receipted as a standard valuation.

12.6. Reversing a Valuation

If a Valuation has been created or even posted in error, this can be easily reversed and will create the corresponding Credit/Debit to correct it.

Within the Supplier Applications window select the Project Number, highlight the required application line from the Valuations transactions:

You will need to click the Reverse valuation button

A message box will be displayed asking you to confirm the reversal.  This explains that if you have already posted the Invoice and/or Receipt to the Supplier Ledger account, then it will create and post the reversing transactions (Credit Note and Payment)

Once confirming that you want to continue another prompt will appear to confirm the date of the reversal.  Change the Date to reflect the original valuation invoice, or the date you require the reversal to be posted – click OK.

The Confirm Nominal Postings window will be displayed showing the movement between the Application and Valuation Creditors Nominal accounts:

When you click Confirm

This will create a Credit Note.  If creating a posting has been made.

Note: These Credits do not need to be posted via the Post Valuations screen they are done automatically; you only need to allocate them.

12.7. Final Application

At the end of the Project or when the Project is coming to an end and the final application has been finalised with the Customer there are number of options.

1. Create a Final Application to write down any unpaid applications and create an application of the final agreed amount

In the Supplier Application screen, with the Project select, click the Final Application button:

This will load the Final Application Window.  This will show you the outstanding amount remaining against all open applications, the New Gross Application Column will show the current application value on load.

When you select an Application Line, this automatically update the New Gross Application Value to equal the current Valuations that are allocated against that Application.  This New Gross Application can be updated if required to be the Final Application Value.  In this example, there isn’t going to be any further Valuations against the Applications, so we are reducing the remain balances to equal the current Valuation.

Once the new values are accepted, you can then allocate the new Gross and Retention Values to the Nominal Lines.  The screen will show you the New Gross Total, New Net Total and Remaining Retention Value to advise you of what is required.

Once you confirm the amended values, the Application are then updated with their new Gross Application Value.  In this instance the Status of the Application move to ‘Retention Only’ as they are only waiting a Retention release.

12.8. Opening Balance Valuation

Opening balance valuations are predominately used to show the opening valued amount when bringing over certified applications from another system.  Doing this also ensures you have the correct Opening Balance Retentions on Projects

In this example, there have been 2 previous applications prior to moving over to Sicon Construction with a cumulative application value of 62,000, as the history of the individual applications isn’t required a single application for 62,000 has been entered.  This also creates any retentions they would have been outstanding.

As part of this Project, 62,000 had already been valued and posted to the Purchase Ledger as an Invoice, thus leaving the outstanding balance of zero (including Retention) to be valued at a later date.  When adding the Valuation Certificate for this, we are using the ‘Opening Balance’ flag.  This tells the system that nothing is further needed with this Valuation, no nominal posts are made, and no Invoice or Receipts are created off the back of it.

12.9. Writing off Application

There are a number of different methods of writing off Application values depending on the scenario.  If you are reducing down the outstanding Application values to prepare a Final Application, then you can use the Final Application option.

If you are reducing down the Application of a specific Application as the value is never to be received, you can edit an Application and reduce the gross Application value to be what is required.  As an example, previously, we had an opening balance Application for 62,000 and a Certified value of 54,000.  The 8,000 difference isn’t going to be received, so we can edit the Application and reduce the gross application value to 54,000.  At this point, you would also need to adjust the nominal analysis to match the new Application Value

If this reduced the Application to the amount that has Valued, then the Application Status, is either moved to ‘Retentions Only’ if there are outstanding Retentions or Paid if not.

Another method of writing off an application is to enter a negative Application.  This method is ideal if the Valuation has already been Invoiced.  As an example, an Application has been added for 54,000 and been Valued and Invoiced.

A negative Application is then added to the Project for the amount that is being written off.  In this instance, it is a full reversal of 54,000.

You would then need to Value this Application using the Credit Note option, which would also need to be printed and Posted to reverse off the Invoice Post to the Customer Ledger.  This has an impact of the cumulative values of the Project reducing the cumulative value applied for.

Another option available if an Application was added incorrectly, is to delete the Application.  You are able to Delete applications if they have not been valued.  This will delete any Retentions created related to that Application.

The system will prompt prior to removing the Application.  Selecting ‘Yes’ will remove the Application.

NOTE: Deleting an Application will consume an Application Reference.  In the example, P00007/AP0005 would be the next Application Number.

The Confirm Nominal Postings window will be displayed showing the credit to the P & L nominal account and the debit to the Application Creditors.

12.10. Writing off Valuation

If a Valuation has been entered incorrectly, similar to writing off Application there are a number of scenarios and methods that can be used, which can be dependent on the current status of the Valuation.

If a Valuation had been entered against an Application, and the Values or References where incorrect prior to posting the Invoice to the Purchase Ledger, you can edit and amend the Valuation.  Highlighting and click Edit Allows you to do this.

Once the Valuation has been printed, certain values cannot be changed.  As an example, on printing the Invoice No. is reserved for when you post the Invoice, and the Invoice date is set.  If the Invoice date is incorrect at this point, then you can delete the Valuation and re-enter, however the Invoice No. would be consumed.  You can still Edit the Valuation and change the values and re-print the Invoice at this point.

The Confirm Nominal Postings window will be displayed showing the credit to the Applications Creditors account and the debit from the Valuation Creditors account

If you want to record and audit type trail of the Valuations that have been entered, rather than Deleting and re-entering, you can use the Reverse the Valuation using the Reverse Valuation Button.

The system will then create a Credit Note for the incorrectly posted Invoice.

You will be asked to confirm the date of the reversal, this will post the credit note back to whatever date you have entered so keeping your periods in balance.

The Confirm Nominal Postings window will be displayed:

If the Invoice had been printed and post and you need to correct, you will always need to use the Reverse Valuation option.  In this instance the routine, will also post a credit note to the Customer Account.  If the Payment for the Invoice had also been Posted, this routine will also Post the Credit Note.

Your are also able to raise a valuation and set the type as a Credit Note and then use the Post Credit note option.

12.11. Writing off Retentions based on Application

The Retention Value is created in the system based on the Application.  In some cases, the Valued amount on the Application, is going to be the total amount received for the application and thus the relevant retention.  In this instance, editing and reducing the Application and Retention Values will reduce the Retention amount held.

If the case is that you have a Valued Retention value that isn’t going to be received or you want to write off part of a Retention, then the following steps will remove the Retention from you Retentions Ledger.

The first step is actually releasing the Retention, using the Release Retentions button on the Supplier Application valuation. This is found on the deductions tab

You then want to add the Retention amount you want to write off.

Once you have entered the amount you want to write off then you are shown the Retention Ledger and the Retention values currently associated to the Project.

Select the Retention you want to write off and adjust the Released Amount where applicable and select Release.

This will create a Retention Release Application with an associated Valuation.

You will then want to Edit the Associated Valuation, mark the Valuation as an Opening Balance and if required, make a comment on the Narrative that this is a Retention Write Off.  As the Valuation and Associated Retentions are now mark as opening balance the don’t have an impact on the Application apart from reducing the balance on the Project.

12.12. Link Existing Invoice

This functionality allows you to select existing invoices on the PL ledger not done through applications and link them to the valuation.

You would enter a valuation as detailed in Section && and then click the Link Existing Invoice:

When you click the Link Existing Invoice the following window will be displayed:

You will need to allocate the amount for the valuation against the Invoice and then click Confirm.

This will then update the Valuation and link it to the Invoice.

13. CIS Help and User Guide

CIS Help and User Guide will take you through the features and settings for the Sicon CIS module for Sage 200. The Help and User guide for this module can be accessed from the link below:

14. Sicon Projects Help and User Guide

For full details please refer to:

Projects when combined with the Construction Module to create reliable and accurate costings linked directly to transactions processed within Sage 200.

The Projects module handles:

• Applications
• Retentions
• Valuations

Linking with Sage 200 sales and purchase orders, invoices and stock to Jobs and cost headings capturing revenue and costs to provide a complete overview of Job profitability. Labour is captured in Projects via timesheets entry or via the Sicon WAP web-based data entry solution.

A flexible 5 level job structure allows detailed breakdown, budgeting and costing of jobs with simple reporting and can be used to manage jobs and their budgeted performance

Settings

Some of the settings can impact on the way revenue is recognised on the project, being displayed as Committed or Actual and needs to be considered when selecting how revenue is recognised against an Application:

• On Application, which is the usual means
• On Invoice

On the Project settings tab>Enquiry tab

Display retentions as actual

Display applications as actual

If ticked these will display the values as actual rather than committed transaction. If you raise an application and these are ticked the revenue will automatically appear of Actual.

Therefore, if you are recognising revenue on application these will need to be ticked.

If you recognise revenue on Invoice then these will need to be unticked so the values can move from Committed to Actual when the application is invoiced.

Project Creation

When creating a project or amending a project you can set construction specific defaults that impact the creation of applications and retentions.

A blank example is shown below:

Retentions

You are able to set Retentions on a project (contract) specific level. You are able to set both Sales and Purchase. This allows you to agree contract specific retentions.

Applications

You can set a series of defaults for Application generation

Default tax Code

Default QS – This will be pulled through to all Supplier Applications:

Default main contractor discount

Billing Options – Relates to the use of Construction Sales orders

If you are wanting to use Construction Sales order to use as the billing option then the billing method needs to be set to be Application:

If this has not been set then an error will be displayed when trying to raise a Construction Sales Order against the project warning you that the billing method has not been set correctly.

Applications

These are displayed on a Project Enquiry as a separate tab, which is essential a Project Specific Application Ledger and allow you to perform the same functions as the relevant Ledger. You are able to view both Customer and Supplier Applications and any Application forecasts. These are displayed as three sub tabs on the Construction tab of the Project Enquiry:

Customer Applications will appear on the Project as Revenue

Supplier Applications will appear on the Project as Cost

An example of the Revenue is shown below:

Each Line shows a single application, with the values being shown as either a committed value (this is only relevant if you are recognising revenue at Invoice) or actual value.

If you click the + sign a new window will be displayed showing the details of the transactions associated with the Application.

The Application tab works as a Project specific Applications ledger. You are able to perform all the functions described in Customer and Supplier Applications Ledger.

The overall values are displayed along the top of the tab:

You are able to filter the view by the transaction type, as per the Application Ledger:

The functions associated with working with ledger transactions can be found along the bottom of the screen:

15. Enable Module

Each year your Construction module will require a new enable string to continue working.  When you have been issued with your new key, select this option and enter the code into the New enable string field as shown below (copy and paste is the easiest way).

To see which modules you have enabled within Sicon Construction, please refer to the Construction Settings.

16. Release Notes

The release notes page shows which release of the system includes new features or issues resolved.

At the release of Sicon v21 we announced that going forward, we will only be supporting Sage 200c and as such we are able to drop the year from our version numbers. We moved from 201.201.0.0 to 210.0.0.

New features detailed in the Release Notes relating to Pre-Release versions will not be detailed in the current Help and User Guide until the end of development phase.

17. New Features & Important Information