Subcontract Bill - Construction

What a subcontractor has billed you for work done on a project, measured against the award you gave them, less the deductions your contract with them allows.

When to use it

A subcontractor has handed in a bill for the work they carried out this period, and you need to record what you owe them.

Before you start

The Project must exist, and the Subcontract Award for this subcontractor must already be recorded. The bill draws its lines from the award.
The subcontractor must exist as a party in your Chart of Accounts.
Every deduction you intend to make (retention, mobilisation advance recovery, tax deducted at source, material recovery) must exist as a purchase-side Billing Term with the account it belongs to.
Your accounts need a subcontract expense head.
Raising a bill and approving it are separate rights. Approval normally sits with someone else.

Where to find it

Entry > Construction > Subcontract Bill.

The fields on this screen

Section	Field (on screen)	What to enter	Required
Subcontract Bill	Bill No.	Number for this bill. It is not generated for you, so enter the next number in your own series.	No
Subcontract Bill	Project	The project this bill belongs to. Only cost centres marked as a project appear in the list.	No
Subcontract Bill	Subcontractor	The subcontractor this bill is payable to. Their account is credited with the net after deductions.	No
Subcontract Bill	Date (AD)	AD date of this bill. Picking the Miti (BS) date fills this in for you.	No
Subcontract Bill	Miti (BS)	Nepali (BS) date of this document. Pick from the calendar - the AD date is filled in for you.	No
Subcontract Bill	Notes	Short note on why this entry was made. It shows on reports and makes the entry easy to find later.	No
Billed Work	BOQ Code	The BOQ item number this line bills, such as 3.2.1. It ties the line back to the awarded item.	No
Billed Work	Description	Description of the work billed on this line. It comes across when you draw from the award.	No
Billed Work	Unit	Unit the quantity is measured in - piece, kg, litre and so on.	No
Billed Work	Qty This Bill	Quantity certified in this bill only, not the running total to date.	No
Billed Work	Rate	The awarded rate for one unit. It comes across when you draw from the subcontract award.	No
Billed Work	Amount	Value billed on this line. It is not worked out from Qty and Rate, so type it in.	No
Deductions	Deduction	The deduction to take off this bill - retention, advance recovery, TDS and the like.	No
Deductions	Rate %	Percentage or fixed figure for this charge, depending on how the charge is set up.	No
Deductions	Amount	Enter a deduction as a negative figure. A negative amount comes off what the subcontractor is paid.	No
Deductions	Remarks	Optional note explaining this charge.	No

How it works

Draft. Pick the Project and the Subcontractor and set the date. Then use Draw from the subcontract award to pull the awarded work in instead of typing it. Only the quantity still left to bill on each awarded line is offered. A bill that measures more than that is refused when you save, so the same work cannot be billed to you twice.
Deductions. Add one row per deduction: pick the Deduction and enter the figure as a negative amount. The negative sign is what makes the row come off the bill instead of adding to it. The account comes from the Deduction you picked.
Submit for Approval. A submitted bill is locked. Whoever approves can either Return for Correction, which sends it back to draft for editing, or Approve & Post.
Approve & Post is what puts the bill into the accounts. The measured work is charged to your subcontract expense, and each deduction goes to the account of its own row. What is left is credited to the subcontractor as the net amount payable.
Reverse Approval takes an approved bill back to draft when it has to be changed. Cancel is for a draft you no longer want.
Once posted, the bill counts on the Subcontractor Statement, Retention Ageing, BOQ vs Actual and Project P&L. Only posted bills count there; a draft is a claim nobody has agreed to yet.

Tips and common mistakes

Deductions are negative figures. A positive one adds to the bill.
Draw the lines from the award; do not type them. A typed line is not tied to the award, so the running total of what the subcontractor still has left to bill goes wrong.
Retention you hold on a subcontractor is money you owe. It is reported separately from the retention your own client holds on you, so do not net the two.
A submitted or approved bill cannot be edited. Use Return for Correction or Reverse Approval.

Subcontract Award (what this bill is measured against), BOQ / Tender Schedule, Projects, RA Bill (billing your own client), Subcontractor Statement and Retention Ageing.