Vendor Compliance Setup

Overview – Vendor Compliance

The Vendor Compliance functionality, which is implemented using vendor compliance codes, is used to ensure compliance with payment terms before a payment can be made against a Subcontract or a Purchase Order via a Voucher in the AP module.

These compliance codes are inherited by vouchers for payments against subcontracts and purchase orders from the defaults set-up for the vendors at various levels.

Initial Setup – Master Set of Compliance Codes & Security

The following provides an overview about setting up the system’s vendor compliance codes at the system level.

Master Set of Compliance Codes & Insurance/Bonding Companies

Enter the master set of compliance codes for the system via the Compliance Codes maintenance screen, and enter the insurance and bonding companies via the Insurance/Bonding Companies screen.

Compliance Code Security

If required, security can be applied to compliance codes via the system module, in a manner like job security. For details, please refer to the Compliance Security section in the System Data guide.

Compliance Groups

If required, compliance groups can be set-up to assign their default compliance codes to the subcontracts, purchase orders and vouchers associated with a specified vendor.

Hierarchical Assignment of Compliance Codes

Once the initial setup is completed, the default compliance codes for new POs and subcontracts are set-up, which are inherited by all new RFPs and vouchers against them.

Any changes made to these defaults only apply to new POs and subcontracts, not to existing POs and subcontracts. To apply changes made to these default compliance codes to existing POs and subcontracts, and their RFPs and vouchers, use the [Apply Changes] button on either the Vendor Compliance screen or the Vendor by Company Compliance screen.

The way in which default compliance codes are assigned to new POs and subcontracts is hierarchical, such that compliance codes can be applied at the relevant level.

Example

If a compliance code is to default to all new POs, for all vendors under all companies in the system, the default compliance code is set-up in the Compliance Code screen (used to set-up codes at the system level), with the ‘PO Auto Assign’ box checked.

The following is the order in which default compliance codes set-up for all vendors, groups of vendors or particular vendors are assigned to new subcontracts and POs, with lower level versions of the compliance codes overriding higher level versions. In this way, defaults are set-up en masse for groups, and exceptions can be set-up at lower levels.

A subcontract’s default compliance codes are inherited by their RFPs, which are then inherited by their vouchers.

1st: Compliance Codes Master – System Level

In determining what compliance codes need to be assigned to a vendor’s new POs and subcontracts, the system first assigns compliance codes set-up for them via the Compliance Codes maintenance screen. If variant versions of the compliance codes exist for the POs or subcontracts at any of the following lower levels, the lowest level versions are assigned.

2nd: Vendor Class Compliance – System Level

Next, the system assigns compliance codes set-up for a vendor’s new POs and subcontracts via the Vendor Class Compliance screen. Again, if variant versions of the compliance codes exist at lower levels, the lowest level versions are assigned.

3rd: Vendor Compliance – System Level

Next, the system assigns compliance codes to a vendor’s new POs and subcontracts set-up via the Vendor Compliance screen, with variant versions at lower levels overriding versions at higher levels.

4th: Vendor by Company Compliance – Company Level

The system then assigns compliance codes to a vendor’s new POs and subcontracts set-up via the Vendor by Company Compliance screen, with variant versions of the compliance code at lower levels overriding versions at higher levels.

5th: Vendor Subcontract Compliance by Job – Job Level

Next, if a new subcontract is being created, the system assigns it compliance codes assigned to its associated job. Job level compliance codes are set-up via the Compliance tab of the Enter Job screen, and the default compliance codes for all new jobs are set-up in the Compliance Codes maintenance screen, in which codes with the ‘JC Auto Assign’ box checked default to all new jobs.

Additional: Vendor Subcontract Tax Compliance by Region – Region Level

Additionally, compliance codes can be assigned to region codes, to ensure that vendors do not charge state/province taxes when they are not applicable due to locations.

These default compliance codes for regions are not assigned hierarchically. They are set-up in the Compliance Codes maintenance screen and then assigned to a region code. Then, if a compliance code is set-up for a region code, any job located in the region code’s state/province will have the compliance code assigned to its new subcontracts (not existing ones) if its state/province is not the same as that of the vendor.

Compliance Codes (Master) – System Level

Pgm: INSTYPE – Compliance Codes Maintenance; standard Treeview path: Accounts Payable > Setup > Global Tables > Compliance > Compliance Codes

The Compliance Codes Maintenance screen is used to enter vendor compliance codes, which are used to determine whether a payment can be made against a purchase order or a subcontract request for payment.

Vendor compliance codes are defined at the system level, and this screen and its entries are shared by the Purchase Order, Subcontract Management, and Accounts Payable modules.

Code, Description

Enter an identifying code and description for the vendor compliance code being defined.

Collaboration Description

The collaboration description is used by JSP modules.

Date Sensitive – Checkbox

This checkbox indicates if the compliance code is date sensitive.

Date sensitive compliance codes are used to ensure that required insurance or certificates for vendors are up-to-date. When a date sensitive compliance code is defined, a start date and end date are specified, which the system uses to determine if a voucher is date compliant. A voucher with a date sensitive compliance code is date compliant if its invoice date or the system date (depending on which date is selected via the Update Date Sensitive Compliance field on the Voucher tab of the AP Control File) is within the range specified by the compliance code’s start date and end date.

Default Compliant – Checkbox

Check this box if the compliance code is to default to “Compliant”.

SC Auto Assign. – Checkbox

If checked, the compliance code will automatically be applied to new subcontracts.

PO Auto Assign. – Checkbox

If checked, the compliance code will automatically be applied to new purchase orders.

JC Auto Assign. – Checkbox

If checked, the compliance code will automatically be applied to new controlling jobs.

Hold Final Payment Only – Checkbox

This checkbox is only applicable to compliance codes for RFPs.

If checked, the compliance code will only be considered for a voucher (during voucher payment in AP) if the voucher’s corresponding RFP has the ‘Final’ box checked (indicates corresponding voucher will be a final payment voucher).

[Groups] – Button

Pgm: INSTYPE – Compliance Codes Maintenance; standard Treeview path: Accounts Payable > Setup > Global Tables > Compliance > Compliance Codes – [Groups] button

Press the [Groups] button to assign compliance groups to the selected compliance code.

Compliance Groups

Pgm: INSGRPS – Compliance Groups; standard Treeview path: Accounts Payable > Setup > Global Tables > Compliance > Compliance Groups

This screen is used to create compliance groups, and to associate them with compliance codes. These compliance groups can then be used in the Change Compliance Status screen of the SC module to assign their associated compliance codes to the subcontracts, purchase orders and vouchers associated with a specified vendor.

In the Change Compliance Status screen, this functionality is reached by clicking the [Compliance] button to launch the Compliance Status screen, and then by clicking the [Copy] button, as shown below:

Pgm: INSINFO – Compliance Status pop-up

Compliance groups are defined at the system level, and this screen and its entries are shared by the Purchase Order, Subcontract Management, and Accounts Payable modules.

Compliance Groups – Section

Code

Enter/select the identifying code for the compliance group.

Description

Enter the description of the compliance group.

Compliance Codes – Section

Use this section’s [Insert] and [Delete] buttons to manage the compliance codes associated with the compliance group selected in the upper section.

Code

Enter/select the compliance code associated with the compliance group selected in the upper section. Please note that a compliance code can exist in more than one compliance group.

Compliance Security Groups (System Module Screen)

Pgm: INSGROUP – Compliance Security Groups; standard Treeview path: System > Security > Compliance Security > Create Security Groups

This scree is used to create compliance security groups, which are defined at the system level, and associated with users, security roles, and compliance codes.

If a compliance code is associated with a compliance security group, only the users belonging to the group will have access to the compliance code. If no compliance security group is associated with a compliance code, access to it is unrestricted.

For details about this compliance security feature, please refer to the System Data guide.

Insurance/Bonding Companies

Pgm: INSCOMP – Insurance/Bonding Companies; standard Treeview path: Accounts Payable > Setup > Global Tables > Compliance > Insurance/Bonding Companies

Use this screen to enter insurance and bonding companies. These companies are used in conjunction with compliance codes to maintain coverage details for assigned vendors.

Enter an identifying code and name for the insurance/bonding company. The Financial Strength Rating field is optional.

Vendor Class Compliance – System Level

Pgm: INSVENCLASS – Vendor Class Compliances; standard Treeview path: Accounts Payable > Setup > Global Tables > Compliance > Vendor Class Compliance

This screen is used to associate vendor classes in the system to compliance codes, so that when creating subcontracts or purchase orders against a vendor, the compliance codes associated with the vendor’s vendor class will automatically be assigned to them, according to the ‘SC Auto Assign’ and ‘PO Auto Assign’ checkboxes under the Compliances section of this screen. This screen is also available in the SC and PO modules.

This auto-assignment of compliance codes to vendors by vendor class works in conjunction with the auto-assignment functionality of the Compliance Codes maintenance screen.

Vendor Class – Section

This section lists the vendor classes set-up in the system via the Vendor Classes screen.

Compliances – Section

This section is used to assign compliance codes to the vendor class selected in the vendor class section:

If a code’s ‘Compliant’ box is checked, it will automatically be checked as compliant.
If a code’s ‘SC Auto Assign’ box is checked, it will automatically be assigned to new subcontracts.
If a code’s ‘PO Auto Assign’ box is checked, it will automatically be assigned to new purchase orders.

Vendor Compliance – System Level

Pgm: INSFM – Vendor Compliance standard Treeview path: Accounts Payable > Setup > Global Tables > Compliance > Vendor Compliance

This screen is used to set-up a default compliance code for a vendor at the System Level. Once the details of a default compliance code have been entered, the default is assigned to the selected vendor system wide (i.e. to every instance of the vendor under all companies in the system) via the [Add to Companies] button. The system wide default for the vendor is saved as entries in the Vendor by Company Compliance screen, in which there will be an entry of this default compliance code for the vendor for each company under which the vendor exists.

Example: Say there are instances of a vendor: Ven1, under three companies: Comp1, Comp2, and Comp3. If a default compliance code is assigned to Ven1 system wide via this screen, in the Vendor by Company Compliance screen, an entry of the default for Ven1 will exist under Comp1, Comp2, and Comp3.

The default compliance code will be assigned to new subcontracts for the vendor if the ‘SC Auto Assign’ box is checked, and to new POs if the ‘PO Auto Assign’ box is checked. These assigned compliance codes are then inherited by the associated RFPs and vouchers.

To assign compliance codes to a vendor at the company level instead of at the system level, use the Vendor By Company Compliance screen.

Using the [Add to Contracts] button, this screen can also be used to add a compliance code to a vendor’s existing posted subcontracts and POs, and to the posted vouchers associated with the subcontracts and POs. And using the [Apply Changes] button, users can update the details of a compliance code assigned to a vendor’s existing posted subcontracts, POs, and posted vouchers that are associated with a subcontract or PO.

NOTE: Before using this screen’s buttons to apply changes, save the changes.

Vendor

Select the vendor to apply the compliance code to.

Compliance Type

Select the compliance code being assigned.

Insurance Company

Enter the insurance/bonding company that holds the insurance policy that being detailed.

Certificate #

An asterisk “*” will default to this field to indicate that this field is not applicable. If it is, enter the certificate/policy number in this field.

Certificate Location

If applicable, enter the location of the certificate/policy.

Amount

Enter the amount of insurance coverage provided by the insurance policy.

Coverage Start Date, Coverage End Date

Enter the coverage start and end dates that represents the coverage period of the insurance policy. The coverage end date will be used to warn the user if this date is approaching. If the compliance code was defined as date sensitive, then these fields are required.

If the vendor allows the insurance coverage to expire, and the compliance code’s ‘Date Sensitive’ box is checked, vouchers can’t be created for the vendor, and checks to the vendor can’t be printed.

Compliant – Checkbox

This field sets the default compliance status of this compliance code for the specified vendor. If it is checked, when this compliance code is assigned to a vendor’s PO, subcontract or voucher, the ‘Compliant’ checkbox will default to checked.

In this screen, this checkbox’s default state comes from the master compliance code, in the Compliance Code screen, and it can be changed at this level if desired.

Date Compliant – Checkbox

For vouchers with date sensitive compliance codes, this field indicates if the voucher is date compliant. This checkbox is not editable, as its state is automatically determined by the system. A voucher with a date-sensitive compliance code is date compliant if its invoice date or system date, depending on the date selected via the Update Date Sensitive Compliance field on the Voucher tab of the AP Control File, is within the date-sensitive code’s start date and end date.

Also, a backend utility can be enabled to run nightly to check all posted vouchers in the Accounts Payable module with date-sensitive compliance codes to update their date compliance status, and if necessary, their payment status accordingly. To enable this nightly utility, the following two checkboxes in the System Options screen of the System Data module must be checked (standard Treeview path: System > Setup > System Options):

1. Check the ‘SC Daily Compliance update’ checkbox (shown below) in the Job Queues pop-up launched by clicking the [Job Queues] button on the General tab of the System Options screen:

2. Check the ‘Automatically Update Compliances’ checkbox (shown below) on the Financials tab of the System Options screen:

Date Sensitive – Checkbox

This checkbox indicates if the compliance code is date sensitive. This checkbox’s state defaults from the master compliance code’s setup in the Compliance Codes maintenance screen, and it is not editable.

A voucher with a date sensitive compliance code is date compliant if it invoice date or the system date (depending on which date is selected via the Update Date Sensitive Compliance field on the Voucher tab of the AP Control File) is within the range specified by the compliance code’s start date and end date.

SC Auto Assign – Checkbox

This checkbox’s state defaults from the master compliance code’s setup in the Compliance Codes maintenance screen.

Leave this box blank to not assign this compliance code to all new subcontracts under the specified vendor, otherwise, check this box.

PO Auto Assign – Checkbox

This checkbox’s state defaults from the master compliance code’s setup in the Compliance Codes maintenance screen.

To assign this compliance code to all new purchase orders against the specified vendor, check this box.

[Copy] – Button

Use the [Copy] button to copy the compliance code to a target vendor.

[Add To Companies] – Button

This button is used to create a default compliance code for the selected vendor at the system level. Once the details of the default compliance code have been entered, the default is assigned to the selected vendor system wide (i.e. to every instance of the vendor under all companies in the system) via this button. The system wide default for the vendor is saved as entries in the Vendor by Company Compliance screen, in which there will be an entry of this default compliance code for the vendor for each company under which the vendor exists.

NOTE: This button is not available in the Vendor by Company Compliance screen as this button assigns codes at the system level

[Add to Contracts] – Button

Use this button to add a compliance code to a vendor’s existing posted subcontracts and POs, and to the posted vouchers associated with the subcontracts and POs.

NOTE: For vouchers, a compliance code is added or updated only if the voucher’s payment status is “Compliance Hold (C)”. A voucher is automatically assigned the compliance hold payment status when it is posted and the system determines that it is not compliant. Once the payment status is changed to a different status, compliance codes can no longer be added to, or updated for the voucher via this screen.

When this button is pressed, the system will examine every subcontract, PO, and posted voucher associated with a subcontract or PO for the selected vendor in the system. If any of these items do not have the code, it will be added. If any of these items already have this compliance code, and the Insurance Company and Certificate # fields match, its details will be overwritten with this code’s details. If an item already has this compliance code, and the Insurance Company and Certificate # fields do not match, this code will be added under the variant version, so that users can see details such as when the older compliance certificate ends and the new one begins.

[Apply Changes] – Button

This button is used to update the details of a compliance code assigned to a vendor’s subcontracts, POs, and posted vouchers associated with a subcontract or PO, system wide.

When this button is clicked, the system will examine every subcontract, PO, and posted voucher associated with a subcontract or PO for the selected vendor in the system. If any of these items have the compliance code, and the Insurance Company and Certificate # fields match, the compliance code’s details will be updated using these details.

Vendor by Company Compliance – Company Level

Screenshot of Vendor by Company Compliance

Pgm: INSVCFM – Vendor by Company Compliance standard Treeview path: Accounts Payable > Setup > Global Tables > Compliance > Vendor by Company Compliance

This screen is used to set-up default compliance codes for a vendor at the company level. The default compliance codes will be assigned to new subcontracts for the vendor if the ‘SC Auto Assign’ box is checked, and to new POs if the ‘PO Auto Assign’ box is checked. These assigned compliance codes are then inherited by the associated RFPs and Vouchers.

Using the [Add to POs] button, this screen can also be used to add a compliance code to a vendor’s existing POs, and to the posted vouchers associated with the POs.

Using the [Add to Contracts] button, a compliance code can be added to a vendor’s existing posted subcontracts, and to the posted vouchers associated with the subcontracts.

And via the [Apply Changes] button, users can update the details of a compliance code assigned to a vendor’s existing posted subcontracts, POs, and posted vouchers that are associated with a subcontract or PO.

NOTE: Before using this screen’s buttons to apply changes, save the changes.

Vendor

Select the vendor to apply the compliance code to.

Compliance Type

Select the compliance code being assigned.

Insurance Company

Enter the insurance/bonding company that holds the insurance policy that you are detailing.

Certificate #

An asterisk “*” will default to this field to indicate that this field is not applicable. If it is, enter the certificate/policy number in this field.

Certificate Location

If applicable, enter the location of the certificate/policy.

Amount

Enter the amount of insurance coverage provided by the insurance policy being defined.

Coverage Start Date, Coverage End Date

Enter the coverage start and end date that represents the coverage period of the insurance policy that you are defining. The coverage end date will be used to warn the operator if this date is approaching. If the compliance code was defined as date sensitive, then these fields are required.

Compliant – Checkbox

This field sets the default compliance status of this compliance code for the specified vendor. If it is checked, when this compliance code is assigned to a vendor’s PO, subcontract, or voucher, the ‘Compliant’ checkbox will default to checked.

In this screen, this checkbox’s default state comes from the master compliance code, in the Compliance Code screen, and it can be changed at this level if desired.

Date Compliant – Checkbox

For vouchers with date sensitive compliance codes, this field indicates if the voucher is date compliant. This checkbox is not editable, as its state is automatically determined by the system. A voucher with a date-sensitive compliance code is date compliant if its invoice date or the system date, depending on the date selected via the Update Date Sensitive Compliance field on the Voucher tab of the AP Control File, is within the date-sensitive code’s start date and end date.

1. Check the ‘SC Daily Compliance update’ checkbox (shown below) in the Job Queues pop-up launched by clicking the [Job Queues] button on the General tab of the System Options screen:

2. Check the ‘Automatically Update Compliances’ checkbox (shown below) on the Financials tab of the System Options screen:

Date Sensitive – Checkbox

SC Auto Assign – Checkbox

This checkbox’s state defaults from the master compliance code’s setup in the Compliance Codes maintenance screen.

Leave this box blank to not assign this compliance code to all new subcontracts under the specified vendor, otherwise, check this box.

PO Auto Assign – Checkbox

This checkbox’s state defaults from the master compliance code’s setup in the Compliance Codes maintenance screen.

To assign this compliance code to all new purchase orders against the specified vendor, check this box.

[Add to POs] – Button

This button is used to add a compliance code to a vendor’s existing POs, and to the posted vouchers associated with the POs.

When this button is pressed, the system will examine every PO and posted voucher associated with a PO for the selected vendor, under the selected company. If any of these items do not have the code, it will be added. If any of these items already have this compliance code, and the Insurance Company and Certificate # fields match, its details will be overwritten with this code’s details. If an item already has this compliance code, and the Insurance Company and Certificate # fields do not match, this code will be added under the variant version, so that users can see details such as when the older compliance certificate ends and the new one begins.

[Add to Contracts] – Button

Use this button to add a compliance code to a vendor’s existing posted subcontracts, and to the posted vouchers associated with the subcontracts.

When this button is pressed, the system will examine every subcontract and posted voucher associated with a subcontract for the selected vendor, under the selected company. If any of these items do not have the code, it will be added. If any of these items already have this compliance code, and the Insurance Company and Certificate # fields match, its details will be overwritten with this code’s details. If an item already has this compliance code, and the Insurance Company and Certificate # fields do not match, this code will be added under the variant version, so that users can see details such as when the older compliance certificate ends and the new one begins.

[Apply Changes] – Button

This button is used to update the details of a compliance code assigned to a vendor’s subcontracts, POs, and posted vouchers associated with a subcontract or PO, under the selected company.

When this button is clicked, the system will examine every subcontract, PO, and posted voucher associated with a subcontract or PO for the selected vendor, under the selected company. If any of these items have the compliance code, and the Insurance Company and Certificate # fields match, the compliance code’s details will be updated using these details.

Vendor in Job’s State/Province Tax Compliance

Pgm: REGFM – Region Maintenance; standard Treeview path: System > Global Tables > Region Codes

The Region Code screen is found in the System module, and it can be used to associate a compliance code to a state/province region code, so that in the Subcontract Entry screen, if the subcontract’s job location state is not the same as that of the vendor, the compliance code assigned to the region code will be added to the subcontract. This can be used to ensure that vendors do not charge state/province taxes when they are not applicable, due to locations.

For details about this screen, please refer to the Region Codes subsection in the System Data guide.