Expenditure line items

Contract-specific line items can be configured in AVEVA Contract Risk Management to support the detailed recording of expenditure and the management of change for the contract. Expenditure and change values are then applied to any associated contract breakdown items. See Contract line items for more details.

Expenditure line items are added to a communication once it has been created and saved. To add line items to a communication, the following conditions must be met:

• Line items have been added in the Contract Configuration.

• The communication's template has the Is Expenditure option set to Yes.

• The communication is in an editable state:

  • The communication is in Draft state.

  • If the communication has a routing path of Contractor to Company and the contract's Method of Communication is set to Contractor to communicate via other means, the communication is in Awaiting Agreement from Recipient, Agreed or Approved state.

See Expenditure values for information about adding and managing other types of expenditure values for a communication.

Line items which record progress are claimed in progress communications (see Progress communications) and are not available in expenditure communications. Progress communications can be linked to an expenditure communication so that payment can be claimed for the line items.

The expenditure values for these line items are automatically calculated for the expenditure communication based on the progress claimed for in the progress communications. See Contract FAQs: How are the claimed values of line items in expenditure communications calculated from the associated progress communications? for more information about how calculations are done.

If changes are approved for the line items or progress measures, the claimed progress and the amount of expenditure claimed may change. See Contract FAQs: How do commitment and budget changes for line items with progress measures affect expenditure communications? for more details.

Line item types

Depending on the line items configured for the contract, the types of expenditure line items which can be added to communications can include:

• Lump Sum - A payment made to the contractor that can be claimed as a single amount or in installments.

• Milestone Payment - A payment made to the contractor when an agreed milestone is met, such as a specific date or delivery target.

• Progressive Payment - A payment made to the contractor on the basis of earned value as a percentage of the total contract award value.

• Reimbursable - A payment made to the contractor for time and materials consumed, based on rates agreed and defined in the contract. Reimbursable line items cannot have progress recorded against them.

• Unit Rate - A line item which has an agreed price, and a total quantity that has been negotiated between the company and contractor and committed to in the contract as the maximum that can be used.

View expenditure line items

Users with the following contract roles can view the line items on the Expenditure page for a communication:

• Contract Owner

• Contract Administrator

• Company Representative

• Contract Budget Holder

• Contract Auditor

The financial values for expenditure line items can only be seen by users with Confidential access to the communication.

To view the line items on an expenditure communication:

1. On the communication register, click the Title of the communication you want to view line items for.

   The Communication Details page is displayed.

2. Click the Expenditure tab.

   By default, the All Available Line Items filter is applied to display all the line items in the contract whether or not you have claimed for them. They are grouped by the associated breakdown item, if configured for the contract.

   Other available filters are:

   • All Claimed Items - includes expenditure line items as well as expenditure values

   • Over Committed Line Items - line items claimed for in the communication for which the quantity, amount or percentage claimed will be greater than the Committed Quantity/Approved Commitment value.

   • Claim Errors - line items for which your updates have not been successful

     Note For Reimbursable line items, the associated rates and rate versions are also displayed as separate rows below the row containing the details of the Reimbursable line item. The Code and Title of the rates and rate versions are indented as a guide.

     Future rates are not shown; only the current rate and any rates with date ranges in the past can be claimed for.

On this page, you can:

• Filter the expenditure values and line items by typing part of the code or title. Click the button to expand the search box, and type the search text.

• Sort the expenditure values and line items by clicking the column headings.

• Drag the columns to a different position in the table. Note that you cannot drag unfrozen columns to the frozen ones.

• Move through the pages of displayed items, and change the number of items displayed per page, by clicking the paging buttons.

• Export a list of expenditure values and line items based on the current filter, by clicking the Export button.

See Expenditure values for information about viewing expenditure values.

The background color of the line item indicates that:

• light red  - the quantity, amount or percentage claimed is greater than the Committed Quantity/Initial Commitment value

• red  - an error has occurred while updating the Claimed value

The numbers of Overcommitted Line Items and Update Errors are displayed at the bottom of the page as icons. Click them to filter the list of line items.

Overcommitted Line Items

Update Errors

See Contract FAQs: How are the consumed quantity and overcommitted status of a line item determined? for more information about how overcommitted line items are determined.

The values displayed on the Expenditure page for all views which contain line items are explained in the following table.

Note Values such as approved, claimed and consumed amounts and quantities are captured when the communication is created and are not updated in the details for this communication when later claims are made.

Claim for expenditure line items in a communication

You cannot claim directly for line items which record progress. Payment is claimed for these by linking progress communications when creating the expenditure communication.

The following users can claim for line items in a communication:

• Contract Owner

• Contract Administrator

• Company Representative

To claim for a line item in an expenditure communication:

3. On the communication register, click the Title of the communication you want to claim line items in.

   The Communication Details page is displayed.

4. Click the Expenditure tab.

5. Make sure the All Available Line Items filter is selected from the drop-down list so that all the line items in the contract are displayed.

6. Click the button to expand the search box, and type the search text for the line item you want to claim for. You can search by Line Item Code, Supplementary Code, Breakdown Item Code or Title.

   Line items which match your text in any of these fields are displayed. For Reimbursable line items, the associated rates and rate versions are also displayed.

7. If necessary, scroll across the page so that the Claimed column is visible.

   Note The Breakdown Item Name, Code, Title and Expenditure Type columns are frozen so that you can easily identify the line item you are claiming for.

8. In the Claimed column for the line item, enter the value of the following:

   • Unit Rate: quantity used

   • Progressive Payment: percentage used

   • Lump Sum: amount (in the line item currency)

   • Reimbursable: the quantity used, entered on the row for the Rate Version you are claiming for

   • Milestone Payment: select the check box

   Tip Click into the Claimed column for a line item to see what type of value can be entered. For a Milestone Payment, a check box is displayed because milestone payments can only be claimed once.

9. Press Enter or Tab, or click on another area of the page to update the value you are claiming for.

   The color of the text on the line item's row briefly changes while the update is made and a pending icon is shown at the bottom of the page next to the Total Financial Impact value.

   

10. If an error occurs, the background color of the row becomes  red .

    If the quantity, amount or percentage claimed for the line item will exceed the Committed Quantity/Initial Commitment value of the line item, the background color of the row becomes  light red .

    Edit the Claimed value as necessary.

    The numbers of Overcommitted Line Items and Update Errors are displayed at the bottom of the page as icons. Click them to filter the list of line items.

    Overcommitted Line Items

    Update Errors

    See Contract FAQs: How are the consumed quantity and overcommitted status of a line item determined? for more information about how overcommitted line items are determined.

See Expenditure values for information about adding expenditure values.

Edit expenditure line items

You can only edit expenditure line items if the communication is in an editable state - see Edit the core details of a communication for detailed information. You cannot edit expenditure values for line items which record progress - the values for these are calculated from the linked progress communications.

Note Because Milestone Payment line items can only be consumed once per contract, they cannot be edited. If necessary, they can be removed from a communication.

The following users can edit an expenditure line item on a communication:

• Contract Owner

• Contract Administrator

• Company Representative

To edit the quantity, amount or percentage claimed for an expenditure line item:

11. If necessary, scroll across the page so that the Claimed column is visible.

    Tip The Breakdown Item Name, Code, Title and Expenditure Type columns are frozen so that you can easily identify the line item you are claiming for.

12. In the Claimed column for the line item, enter the value of the following:

    • Unit Rate: quantity used

    • Progressive Payment: percentage used

    • Lump Sum: amount (in the line item currency)

    • Reimbursable: the quantity used, entered on the row for the Rate Version you are claiming for

    • Milestone Payment: select the check box

    Tip Click into the Claimed column for a line item to see what type of value can be entered. For a Milestone Payment, a check box is displayed because milestone payments can only be claimed once.

13. Press Enter or Tab, or click on another area of the page to update the value you are claiming for.

    The color of the text on the line item's row briefly changes while the update is made and a pending icon is shown at the bottom of the page next to the Total Financial Impact value.

    

14. If an error occurs, the background color of the row becomes  red .

    If the quantity, amount or percentage claimed for the line item will exceed the Committed Quantity/Initial Commitment value of the line item, the background color of the row becomes light red .

    Edit the Claimed value as necessary.

    The numbers of Overcommitted Line Items and Update Errors are displayed at the bottom of the page as icons. Click them to filter the list of line items.

    Overcommitted Line Items

    Update Errors

    See Contract FAQs: How are the consumed quantity and overcommitted status of a line item determined? for more information about how overcommitted line items are determined.

See Expenditure values for information about editing expenditure values.

Remove expenditure line items

You can only remove expenditure line items from a communication if the communication is in an editable state - see Edit the core details of a communication for detailed information. You cannot removed expenditure values for line items which record progress - the values for these are calculated from the linked progress communications.

The following users can remove an expenditure line item from a communication:

• Contract Owner

• Contract Administrator

• Company Representative

To remove an expenditure line item from a communication, clear its value in the Claimed column.

See Expenditure values for information about removing individual expenditure values.