Create Payment Lines
Explanation
This activity is used to add payment lines, ad-hoc or planned, for work performed by a Contractor. Payment lines
can be created manually or generated automatically when a Contractor Order is created based on Request Work Task
planning lines.
Additionally, payment lines can be automatically generated from cost rules for fixed prices defined in agreement
lines. When a Contractor Order is created, payment lines are generated as follows:
- Manual Entry: Users can manually add payment lines by specifying the relevant Cost Type, Purchase Part,
Quantity, and Pricing details.
- Automatic Creation: Payment lines are created based on:
- Cost Rule lines that have Include in Fixed Price enabled, with the Purchase Part for Fixed Price defined.
The price is determined by the price mechanism.
- Planning lines, fetching the corresponding Purchase Parts and Prices, with the invoice percentage set to
100%.
- The Total Price is calculated using the formula: Total Amount per Line = (Price – (Price x Discount)) x
Quantity x Invoice %
- Discount and Invoice % is concerted to decimal.
- The Total Amount field on the Contractor Order reflects the sum of all Total Prices set on the payment
lines.
Prerequisites
- A Contractor Order must be created.
- Planning cost and sales lines must be defined for automatic creation.
- The Cost Rule should be set up with relevant Purchase Parts and price mechanisms.
System Effects
- As a result of this activity, Payment Lines are added to the Contractor Order.
- Contractor Order and Payment lines are automatically created when a Contractor is added to a task or
scope.
- Fixed price payment lines are created based on agreement rules, while other payment lines derive from
planning lines.