Authorize Payment Lines

Explanation

Use this activity to authorize payment lines in a Contractor Order. The payment lines can be set to be authorized automatically, or users can authorize each line, manually.

Automatic Authorization

This activity enables the automatic authorization of payment lines, and the creation of Purchase Order (PO) Lines based on predefined conditions in the Contractor Agreement Line. It reduces manual review efforts by ensuring that payment lines are only authorized if no modifications have been made or if the costs remain within the agreed limits.

Users can control this process through two settings on the Agreement Lines:

1. Automatically Authorize Payment Lines – When enabled, the system checks for changes in the payment lines before automatically setting them to Authorized.
2. Automatically Create Purchase Order – When enabled, purchase order lines are automatically created once payment lines are authorized.

If a contractor reports work completion the system verifies that:

• No changes have been made to the payment lines ( the confirmed values have not changed).
• No new payment lines have been added.
• Payment line costs do not exceed the agreed amount in the Contractor Agreement.

If these conditions are met:

1. The system sets the payment lines to Authorized automatically.
2. If Automatically Create Purchase Order is enabled, a Purchase Order is created, the payment lines and Contractor Order are set to Closed, and Cost Lines are created for the purchase.

Manual Authorization

For manual authorization, users can review and authorize payment lines before Purchase Order creation, ensuring greater control over contractor payments.

Authorization Limit

If there is an Authorization Limit set on the Contractor Order, when a payment line is being authorized, the system will sum all the confirmed payment lines' Total price values and compare them with the Authorization Limit. If it exceeds, a message will show asking the user to approve this exceeded limit. Only if the user answers yes the payment line will get authorized, and the Authorization Limit value on the Contractor Order will be updated. A badge on the contractor Order will show that Authorization was Done.

Prerequisites

• The Contractor Order must be set to Work Reported, indicating that all time, materials, and work tasks are completed.
• The Agreement Lines should have the necessary toggle settings enabled.

System Effects

• Payment lines are automatically authorized if no changes or additional costs exist.
• If enabled, Purchase Order lines are created, and the Contractor Order is set to Closed upon authorization.
• Users can manually authorize payment lines before Purchase Order creation if required.

Pages

Contractor Orders
Request Work Task

Activity Diagrams

Create Payment Lines