Orders, Subcontracts and Amendments (KA)

Establishing and maintaining contractual commitment on the system.

The Muli system requires an Order or Subcontract to be raised before any account payments may be processed.

These have the following preceding letter to signify their purpose.




     C    Credit or incoming order, generated from Accounts
          Receivable.
     E    Equipment Order generated from Asset/Equipment System.
     P    Purchase Order.
     S    Subcontract.
     L    Labour Order, generated from Payroll.
     M    Materials Order from Inventory System.

All orders placed on the system should be "Bulk Orders", that is, an order for the total cost of the Scope of Works and/or supply of materials for the duration of the project, that the order covers. Hence the theme "Commitment Accounting". From this basis, the summation of all bulk orders let, plus any available budget, together with continuous revisions of the final forecast cost of each order, allows us to predict the end cost of the project.

This is compared with the revised contract to show up expected contribution, at each cost report.




________________________________________________________________________________
 DD/MMM/YY HH:MM  AMENU   ORDERS, SUBCONTRACTS & AMENDS  VN/SERIAL USER  mulixx
                               Your Company Name
     ORDERS
     1.   Purchase Order Creation
     2.   Purchase Order Print

     SUBCONTRACTS
     3.   Subcontract Creation
     4.   Subcontract Maint/Print
     5.   Subcontract Final Certificate
     6.   Subcontract Signed Confirm
     7.   Subcontract Unsigned Report
     8.   Subcontract Mtce. Reqd. Report

     AMENDMENTS
     9.   Amendment Creation
     10.  Amendment Print

     ENQUIRIES
     11.  </>Supplier Status Report
     12.  Orders Listing Report
     13.  Order Enquiry Report
     14.  Orders by Supplier Report
     15.  Orders Answers Report
     16.  Orders Answers Deletion

     Please Enter Selection Number  __
________________________________________________________________________________

04.01 Purchase Order Creation

Purchase Orders are used for simple supply items not requiring any special conditions of contract or on site labour.

The purchase order provides a financial commitment on to the Muli system without any special terms and conditions usually for supply of goods.

Bulk Orders

We recommend that purchasing uses the bulk order concept, the order value being for the total requirements which is then compared against Budget, providing the basic data for cost reporting.

(i.e. 150,000 common bricks are required [including wastage] @ $145.00/1000 .. 150,000 @ $145 = $21,750.00 compared budget of $23,000 .. saving $1,250.00)

A bulk order quantity summary form has been developed (4-3 and 4-4) to summarise the quantities and values used for the original order and checking performance at cost report time.

Site Order Books

Under the Muli System, these are retained. However, when the order becomes an "Authority to Deliver" then there is provision to insert the system generated original Bulk Order Number, Project and Allocation.

Period Contract

With bulk supply items such as concrete, plant hire, timber, hardware, the company may find it beneficial to negotiate period or bulk orders covering a defined region or period to obtain better rates/conditions. The purchase order would define values and specifically refer to the Master Agreement for terms and conditions.

NOTE: Standard Terms and Conditions of Order may be either attached or applied by photocopier to the back of the order, or with special stationery, orders may be printed using a dedicated printer.

For security reasons, the order or subcontract may be marked as only valid when imprinted with the Company Seal (which is kept under separate security).

Add a New Order

To commit to the system and physically write a new purchase order.




____________________________________________________________________________
 DD/MMM/YY HH:MM  AMENU   Purchase Order Creation   VN/SERIAL USER   mulixx


          Purchase Order #
     1.   Supplier #       BRICK     BRICK SUPPLIES
     2.   Project  #       840001    RECREATION FACILITY QUALTOWN
     3.   Allocation #     4200      BRICKLAYER

     DISPLAY BUDGET DETAILS?  Y/N (N) __
____________________________________________________________________________

Supplier 6A# (Nil Default) (Basic 5)

Entering a pre-determined 6 digit supplier's name will have the system responding with the supplier's full name. (If the supplier is not on file then his details have to be entered through 3.01 before you may proceed).

Project 6# (Nil Default)

After entering the project number, the system will display the project name, if valid, or if not, it will request a new project number.

Allocation 4#

The default allocation is the first workcode shown in the suppliers' file. Any valid workcode for that project may be entered. A valid workcode is one against which a budget item has been entered, although that budget may be nil.

Display Budget Details? Y/N

If the details are requested then a presentation similar to the allocation management report 7.05 is displayed on the screen for the operator to review previous processing prior to proceeding with the commitment.




__________________________________________________________________
 DD/MMM/YY HH:MM  AMENU    Order Writing   VN/SERIAL USER  mulixx

     1.   Supplier            BRICK SUPPLIES
     2.   Project             RECREATION FACILITY QUALTOWN
     3.   Allocation          4200 BRICKLAYER
     4.   Allocated Budget    23,000.00
     5.   Cmtd Value          21,750.00
     6.   Order Date          31/03/84
     7.   Payment Terms       A  28  0.00
     8.   Brief Description   Common Bricks
     9.   Order Text Type
__________________________________________________________________

Alloc. Budget 8#

The value of the budget allocated to the order. The value of Budget allowed in the original Estimate updated for variations and Rise & Fall less any allowance put aside for Amendments. See Appendix 4.A for calculation layout.

NOTE: The proportionate value of budget by the estimator corresponding to the scope of work for which the order value is let. The total of the Allocated or Committed Budget column should NEVER exceed the adjusted budget for that allocation. A Budget cannot be allocated twice.

CMTD Value 10#.99 (Committed Order Value)

Value of the order. (The maximum value of invoices that may be processed before the system indicates over payment.)

NOTE: The difference between CMTD Budget and CMTD Value is automatically indicated as a variance in the Management Reporting System 7.01 and 7.06.

Order Date DDMMYY (Default System Data)

The date appearing on the order. Default to today's date.

Payment Terms 1A (Default to Payment Terms on Suppliers' File)

Determines the duration between raising the invoice and payment and the value of a prompt payment discount which may be applied alphabetically between A to N. Set in 3.40.

Order Text Type

The text type you wish to appear on the order.

A number of standard text types can be made up, summarised by a code or text that can be inserted at time of order placement to save time. Add, change or delete mode is incorporated.

Texts can be written for Orders, Subcontracts or Amendments (O/S/A)




          Text type:     In the six letter code you wish to
                         call the standard text type for
                         entry at order placement.

          Heading:       The order heading being "Purchase
                         Order", "Subcontract", "Income
                         Order", whatever you choose.

          Supplier Desc: Introduction line above the
                         supplier's name and address.

          Entries Correct (Y/N)

Then you have 21 lines which will be the standard text and will appear under the text type.

If you do not use a text type, in other words, a one off order, then you would use the 21 lines as the specification for the order. If you do not wish to use any of the 21 lines allocated, hit return to jump over this phase ("skip" on old system).

If you wish to make blank lines within the text then typing the word "blank" on the appropriate line number will achieve this.

The system will then ask you "would you like a printer copy?" Respond "Y" or "N".

04.02 Purchase Order Print

This is automatically changed after completing the entry of order details and the order number is the most recent.




__________________________________________________________________
 DD/MMM/YY HH:MM  AMENU     Order Print   VN/SERIAL USER   mulixx

     1.   Purchase Order No.

     Enter Purchase Order No.  __

__________________________________________________________________

Purchase Order No.

Enter the "P" order number you wish to print.




__________________________________________________________________________
 MULI MANAGEMENT PTY. LTD.
 2 Railway Parade, Thornleigh.  N.S.W.  2120      Phone:  (02)875.4333

 TO:  BRICK SUPPLIERS PTY. LTD.     * PROJECT #        840001
      FENWICK ROAD                  * ALLOCATION        4200
      SYDNEY  NSW  2000             * ORDER #           P80087
                                      SHORT DESCRN      COMMON BRICK SUP
                                      CMTD VALUE             $55,000.00

      RE PROJECT:                     PAY TERMS         0.00%  28 DAYS
      RECREATION FACILITY QUALTOWN
      CNR. LONG & SHORT STREET
      QUALTOWN                      * PLEASE QUOTE IN ALL CORRESPONDENCE
      SITE PHONE: 02 487 2887


 PLEASE SUPPLY AND DELIVER THE FOLLOWING IN ACCORDANCE WITH THE ATTACHED
 TERMS AND CONDITIONS.

 SUPPLY 150,000 SELECT COMMON BRICKS IN ACCORDANCE WITH BULK AGREEMENT
 DATED 30/06/84.
                                    MAXIMUM ORDER VALUE $21,750.00


 Any standard notes selected would print in this space.



 FOR MULI MANAGEMENT PTY. LTD.
 DATE ../../..  ..........................
 POSITION       ..........................
__________________________________________________________________________

NOTE: Depending on site definition controls, either 2 or 3 copies of the order are created:

  1. 1. Supplier
  2. 2. Office File Copy
  3. 3. Site Copy (optional)

04.03 Subcontract Creation

Any agreement requiring on site labour and/or special conditions of Agreement.

The Muli Subcontract system provides a check list and final documentation for the processing of a subcontract.

The document produced treats traditional subcontract demonstration as attachments with the schedules extracted and produced by the Muli system (Ref 4.10).

"THERE SHOULD BE A COMPLETE CONTRACT DOCUMENT SIGNED BY THE PARTIES AND MULI RECOMMEND EACH USER CONFIRM WITH THEIR LEGAL REPRESENTATIVES TO ENSURE CORRECT APPLICATION IN RELATION TO THE HEAD CONTRACT AND THEIR NORMAL BUSINESS METHODS."




__________________________________________________________________________
 DD/MMM/YY HH:MM  AMENU     Subcontract Creation  VN/SERIAL USER   mulixx


          Sub Contract #
     1.   Supplier #           PEERS PEERS AIRCO ORDER # S50047
     2.   Project  #           520001
     3.   Allocation #         6400
__________________________________________________________________________

Supplier 5A# (No default)

Any 5 character suppliers' code. The system will respond with the supplier's full name. If supplier not on file, then the details need to be entered through 3.01.

Project 6# (No default)

The system will then display the project name, if valid, or request a new project number.

Allocation 4#

The default allocation (coming from the first allocation shown in the supplier's file). Any valid allocation for the above project may be entered. A valid allocation is one where a budget entry exists.

Display Budget Details? Y/N

If the details are requested then the allocation management report (8.05) is displayed on the screen for the operator to review prior to proceeding with the commitment.

Alloc. Budget 8# (Allocated Budget)

The amount of budget allocated to the subcontract is proportionate to the value allowed by the Estimator and corresponding to the scope of works value for which the order is let. "The value of Budget allowed in the original Estimate updated for variations and Rise and Fall less any allowance put aside for Amendments."

CMTD Value 10#.99 (Committed Value)

The value of the subcontract is the maximum value of Invoices that can be processed before the system treats the payments as defective.

NOTE: The difference between CMTD Budget and CMTD Value is automatically indicated as a variance in the Management Reporting System 8.01 and 8.06.

Order Date DDMMYY

The date appearing on the Subcontract. Default to today's date.

PPS Tax Number

Prescribed payment tax deduction number.

PPS Tax Rate %

Tax rate.

Payment Terms 1A

Determines the duration between raising the invoice and payment and the value of a prompt payment discount that may be applied alphabetically between A to N. Set in 4.70.

Brief Description 20 A#F

A short description of what the Subcontract is for will appear in all internal reporting.

Retention Code 1A

Determines the rate at which retention by default is taken from all progress claims. Value 'O' to 'Z' the max. rate of retention and max. retention value applicable expressed as a percentage of the revised contract value to each code are set in Ref. 4.08.

Subcontract Type 6A#

Refers to the subcontract type being used. The schedule for which must have been previously set up Ref. 4.10 (Subcontract Questions Maintenance), i.e. SCE.3.

Subcontract Reference 6A#

The reference number appearing on the front cover of the subcontract document being used for this agreement.

This first schedule is called "COMMON" in subcontract Questions 3-10, and appears in all subcontracts. May be altered by the individual user to incorporate particular user's requirements (see 3.10).




_________________________________________________________________________
 DD/MMM/YY HH:MM  AMENU     Subcontract Writing  VN/SERIAL USER   mulixx

     1  1.     DRAWINGS:                     840001 M.1a,26,3a
     2  2.     SPECIFICATION                 PAGES 21 TO 36 INCL
     3  3.     BILL OF QUANTITIES            NOT APPLICABLE
     4  4.     SCHEDULE OF RATES             NOT APPLICABLE
     5  BLANK                                ...................
     6  5.     OTHER ATTACHMENTS             NIL
     7  BLANK
     8  6.     RISE AND FALL                 NOT APPLICABLE
     9  .      BASE FOR R & F TO BE CALCULATED   NOT APPLICABLE
     10 7.     LUMP SUM FIRM PRICE           YES
_________________________________________________________________________

The next schedule is specific and is called up by subcontract type.




______________________________________________________________________________
     1
     2    SCHEDULE OF RESPONSES TO THE SCE.3   SUBCONTRACT
     3    ARCHITECT AT DATE OF AGREEMENT       JOE BLOGGS ESQ.
     4    DESCRIPTION OF WORKS                 AS PER AGREEMENT FACE SHEET
     5    SPECIAL AGREEMENT RE DRAWINGS AND    SPECIFICATION: NOT APPLICABLE
     6    DRAWINGS PREPARED BY                 ARCHITECT
     7    SPECIFICATION PREPARED BY            ARCHITECT
     8    LUMP SUM                             AS PER AGREEMENT FACE SHEET
     9    SCHEDULE OF RATES                    AS PER AGREEMENT FACE SHEET
    10    SECOND SCHEDULE                      .
    11    ANTICIPATED DATE FOR COMMENCEMENT    30/06/84
    12    DATE OR PERIOD FOR COMPLETION        3 WEEKS
    13    IF IN STAGES                         .
    14    IF IN STAGES
    15    LIQUIDATED DAMAGES                   $200 PER DAY, 6 DAY WEEK
    16    .                                    .
    17    THIRD SCHEDULE                       .
    18    INSURANCES                           AS PER AGREEMENT FACE SHEET
    19    .                                    .
    20    FOURTH SCHEDULE. SERVICES.           .
    21    A. ELECTRICITY 21                    .

    A.    ELECTRICITY ....................................
______________________________________________________________________________

Subcontract Agreement

04.04 Subcontract Maintenance/Print

As with the orders, two or three copies of the agreement are printed with the office copy for signing and retention as the signed file copy.

Insurance Details Note

Although no details were requested during the development of the Subcontract input the current information on the subcontractor's record is printed.

If nothing is printed or the insurance has expired an additional note will appear.

"**Note:** All data to be confirmed prior to first payment."

Insurance data should be filled in at the time of signing and entered into the system Ref. 4.06 or the system will advise against payment when the payment selection is made Ref 5.02.

04.05 Contract Signed Confirm

To amend the value or conditions of an order or subcontract.

Once this control has been set in the control file (refer to your MULI representative who will set them for you) the subcontract is confirmed as received and back payments maybe processed for payment but not paid.

04.06 Subcontract Final Certificate

04.07 Subcontract Mtce. Reqd. Report.

4.06 Amendment Creation

The Amendment system is used to upgrade both a Purchase Order and Subcontract and allocates a subscripted A,B,C to the original order or Subcontract number for each successive amendment.

The Amendment may also be used to change the payment terms and/or Retention Code Defaults being applied to the processing.

All financial changes to an Order/Subcontract require an amendment to validate the "agreement" i.e. items as "Day Labour", "Rise and Fall" or changes to the scope of works. By paying for the work completed within a normal progress claim the payment is on account and has not increased the subcontract value to allow the system to pay the new higher (or lower) contract value.




______________________________________________________________________________
DD/MMM/YY HH:MM  AMENU     Order Amendment Writing   VN/SERIAL USER   mulixx

                       PREVIOUS AMENDS             THIS AMENDMENT

     ORDER/SUBCONTRACT#  S80047
 1.  SUPPLIER            PEERS PEERS AIRCOND
 2.  PROJECT             840001 REACTION FACILITY QUALTOWN
 3.  ALLOCATION          6400
 4.  PPS TAX NUMBER      .
 5.  PPS TAX RATE %      .
 6.  ORDER DATE          01/03/84
 7.  PAYMENT TERMS       K
 8.  RETENTION CODE      V
 9.  ALLOC BUDGET             1160                     1,500.00
 10. CMTD VALUE               1240                     1,300.00
     CERTIFIED                0.00
 11. DESCRIPTION
 12. AMENDMENT TEXT (NEXT SCREEN)

 SHORT DESCRIPTION:  8 Ceiling fans
______________________________________________________________________________

Order Subcontract #6

The original number of the order or subcontract to be amended. The system then responds with left hand side data from 1 to 11 (NOTE: DO NOT ADD SUFFIX).

Approved

The value of authorised payments (not necessarily paid out to the Subcontractor/supplier).

Payment Terms 1A.

The terms may be changed by entering the desired new code. Default is the existing code.

Retention Code 1A.

The retention code may be changed by entering the desired new code. Default is the existing code.

Committed Budget 8#

The value of budget being applied to the amendment.

Committed Value 10#.99

The total value of this amendment.

Brief Description 20A#.

A short description of what the amendment is for.




______________________________________________________________________________
 DD/MMM/YY HH:MM  AMENU     Order Amendment Writing   VN/SERIAL USER   mulixx


     1.   CEILING FANS
     2.   SUPPLY & INSTALLATION OF
     3.   8 ONLY 48" CEILING FANS IN ACCORDANCE
     4.   WITH DRAWING 840001 M2C
     5.   INCLUDES ALL ELECTRICAL TO SWITCHBOARD
     6.   COLOUR WHITE
     7.   CONTROLLERS LOCATED IN P.E. MASTER OFFICE
     8.   -
     9.   DUCTWORK
     10.  DUCTWORK TO TOILET EXHAUST GALVANISED
     11.  IN PAINT FINISH SPECIFIED
     12.
     13.
     14.
     15.
     16.
     17.
     18.
     19.
     20.
     21.
      1   .....................................................
_____________________________________________________________________

Amendment Text 21/60 A#

The text allows free description of the scope of works and may include a number of items within the one amendment.

NOTE: The value entered previously is sum of all amendments.

4.09 Amendment Print




______________________________________________________________________
 DD/MMM/YY HH:MM  AMENU     Amendment Print   VN/SERIAL USER   mulixx

     1.   Order/Subcontract Amendment No.   S500

     Enter Order/Subcontract Amendment No.  __

______________________________________________________________________

INSERT PAGES 421 4.07 ORDER LISTING REPORT THEN PAGE 423

4.10 Order Listing Report

A listing or orders in numeric order on a project or Cost Centre basis.




_________________________________________________________________________
 DD/MMM/YY HH:MM  AMENU     Order Listing Report VN/SERIAL USER   mulixx

     1.   Starting Order Number
     2.   Ending Order Number
     3.   Order Type

     Enter Starting Order Number (exclude Type) (ALL) __
_________________________________________________________________________

Starting Cost Centre

The Cost Centre or Company you wish to start with.

Ending Cost Centre

The last Cost Centre to be listed.

Default: Starting Cost Centre.

Order Type 1A




     P    =    Purchase Order
     S    =    Subcontract
     C    =    Credit or Accounts Receivable Order
     L    =    Labour Order (Payroll)
     Default = All

04.11 Order Enquiry Report

A listing of all transactions that have occurred on an order including Amendments and Payments.

Prints total order and subcontract details including original letting and all amendments to give adjusted contract value, followed by payment details so the current status may be reviewed.




___________________________________________________________________
 DD/MMM/YY HH:MM  AMENU     Order Enquiry  VN/SERIAL USER   mulixx

     1.   Order #        P50009

___________________________________________________________________

* Sample required 4.08 *

04.12 Supplier Status Report

A listing of all orders for a particular supplier may be in complete format similar to Order Enquiry or Summary Format only displaying totals.

04.13 Orders by Supplier Report

04.14 Orders Answer Report

04.15 Orders Answer Deletion


The information contained in this manual is representative of the system. However, because of Muli's policy of continual product improvement, Muli reserves the right to make changes at any time without notice.

Muli accepts no liability for this product as per the license agreement.

PROPRIETARY RIGHTS NOTICE

All rights reserved. This material contains proprietary information of Muli Management Pty. Ltd., N.S.W., Australia, embodying confidential information, ideas and expressions, no part of which may be reproduced in any form without written permission of Muli Management Pty. Ltd.

COPYRIGHT ©MULI Management Pty. Ltd.
All rights reserved.



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