Applications for payment (AFPs)

You can create AFPs to summarize the completed work for each cost period. AFPs, which are also referred to as requests for payment or payment requisitions, are used for contracts that don't commit costs to the budget.

A contract between the general contractor and the owner specifies that the owner make progress payments at regular time intervals. The payments from the owner are based on the work done by the general contractor and the subcontractors. The general contractor creates an AFP to summarize the work completed for the current cost period.

On the Application for Payment tab, the banner displays:

  • The contract rule determines how you can bill the contract.
  • You can edit the line items only for the AFP with the highest sequence number.

When you create the first AFP for a contract, you can add the SOV from the contract. You can also start with an empty AFP and then add line items to it.

  • Line items are carried over to future AFPs, so setting up the first one is important.
  1. Click Create.
  2. If this is the first AFP for the selected contract, click Yes to add the SOV from the contract.

    3. —Or—

    To leave the Detailed Items grid empty, click No.

      Workflow field
  3. In the Detailed Items grid, add or edit the line items, and enter the lump sum or unit price payments.
  4. On the Contact Information tab, enter the company and contact information.

In an AFP, you can add:

  • New line items to show the cost breakdown of SOV items from the contract.

    • You don't know the cost breakdown when you create the prime contract, so you add one SOV item for $50 million. When you add line items to the AFP, you deduct the scheduled cost of the new line items from the $50 million item.

  • PCCOs to receive payment for the work outlined in the change order.
  • Contract invoices and general invoices to identify costs from subcontractors and costs that aren't included in the contract.
    • Only the contract invoices and general invoices that are marked for inclusion are added to the AFP.
    • If you change the invoice line items in the AFP, the changes aren't synced back to the contract invoice or general invoice. To sync them, you can edit the contract invoice or general invoice directly, and then refresh the invoices in the AFP.
  1. In the Detailed Items section, click Add.
  2. In the row, enter the description and scheduled value for the line item.
  1. In the Detailed Items section, click Add CO.
  2. Select the PCCO, and then click Select.

    3. Only PCCOs that are created in the same or previous cost periods are available.

  1. In the Detailed Items section, click Refresh.
  2. Select General Invoices or Contract Invoices.

    3. Only the invoices for the same and previous cost periods are included in the AFP.

  • In the Detailed Items section, select the checkbox for the line item, and then click Remove.