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AP Global Tables: Create the Pre-Lien Compliance Codes
Pgm: INSTYPE – Compliance Codes Maintenance; standard Treeview path: Accounts Payable > Setup > Global Tables > Compliance > Compliance Codes
For a compliance code to be used for pre-lien compliance, all of the checkboxes for the compliance code attributes must be unchecked (as shown above), as those attributes do not apply to a pre-lien compliance.
System Options: Set Compliance Code for Pre-Lien Compliance
AP Local Tables: Flag Invoice Series Codes to Use Pre-Lien Compliance
If an invoice series code is to be used with pre-lien vouchers, indicate this by checking the invoice series code’s ‘Use Pre-Lien’ checkbox via the Invoice Series Code maintenance screen (standard Treeview path: Accounts Payable > Setup > Local Tables > Invoice Series Codes).
AP Control File
Voucher Tab
Ensure the Use Pre-lien Compliance box is checked and select the underlying rule for applying pre-lien compliance to vouchers via the Pre-Lien Rules field.
Check Tab
Check the ‘Group Checks By Joint Payee Name’ checkbox to allow pre-lien tiers to be included on checks.
Vendor Records: Set-up Pre-Lien Compliance Vendor
Indicate that pre-lien compliance applies to a vendor by checking their record’s ‘Use Pre-lien Compliance’ checkbox, via the Vendors tab of the Maintain Vendors screen.
The Voucher Status Def. field on the Accounting tab is kept at “Normal”.
Vouchers
The pre-lien compliance code is added to RFPs (if being used) and vouchers against a subcontract based on the setup for the vendor (note, the pre-lien compliance code is not added to subcontracts). It can also be added or deleted from a posted or unposted voucher as long as no payments have already been made against it (to prevent data inconsistency problems).
A voucher with a pre-lien compliance code gets its payment status set to “Compliance Hold (C)”, and it will not be available for payment until a payment is released via the Release Lien screen.
The way in which vouchers are created in AP for Subcontracts is determined by the setting of the Enter Invoices field on the Contract Defaults tab of the Subcontract Control File screen. The following provides details about the two settings for the Enter Invoices field:
Via Subcontracts:
Indicates that vouchers against subcontracts, in the AP module, are automatically generated using subcontract request for payments (RFPs) when RFPs are posted in the SC module. Also, the vouchers created in the AP module will be posted vouchers, ready for payment processing.
Via Accounts Payable:
Indicates that vouchers against subcontracts, in the AP module, are manually entered through the Enter Vouchers screen of this module. If this option is selected, RFPs are not used in the system.
Pre-Lien Notice
Create the pre-lien notice per Job/Vendor or Job/Vendor/Subcontract via the Enter Lien screen by entering the 2nd and 3rd tier pre-lien vendors to be paid when the primary vendor is paid and entering their corresponding notice dates.
These payee details are used to create the payee distribution in the Release Lien screen each time a payment for a voucher against the subcontract needs to be released, until the final payment is released for each payee. When the final payment is released for a payee via the Release Lien screen, the ‘Closed’ checkbox for the payee line in the Enter Lien screen is automatically checked. This checkbox can be manually checked if required.
The subcontract code is validated if entered, and replaced by N/A if there is no subcontract for the vendor yet.
The Date of Notice field is informational only, and not used in the payment selection process.
Pre-Lien Release: Release Payments Against Subcontract
A pre-lien release record is automatically created for a pre-lien notice record, and available in the Release Lien screen, however, only the header level information is detailed. The payee distribution in the Payee Information section is created each time a payment against the subcontract needs to be released for a payee, until the final payment is released for each payee. When the final payment is released for a payee via the Release Lien screen, the ‘Closed’ checkbox for the payee line in the Enter Lien screen will automatically be checked. The checkbox can be manually checked if required.
Payment Selection
Payment selection based on Pre-Lien Release occurs only after all other compliances (including PwP) have been met, thus pre-lien would remain as the only outstanding compliance.
This selection is based on invoice date, notice date, release date, and payment cut-off date.
(Notice Date < Invoice Date < Cut-off Date <= Release Date)
Addition/deletion of pre-lien tiers is not allowed once a payment selection exists for that job/vendor/subcontract combination.
Printed Checks
Checks for joint payees should show all payees and are printed in the order that is shown in the pre-lien release.
When checks are posted, any outstanding voucher amounts can be view via the Adjust Voucher Status screen.
Cash Requirements Report
This report should show the payments to be made.
Check Voiding
When a check related to pre-lien payments is voided, the release schedule lines will have to be manually adjusted before re-processing.