Scenario: AP e-invoicing without advanced approvals (just using authorisation limits)
e-invoicing enables a creditor setup as a subcontractor to still be processed as a trade creditor. This makes sense in some scenario’s as the creditor could have a supply only scope or a supply and install scope so there needs to be this flexibility.
There is a common scenario of utilising external labour hire. Currently these creditor transactions can be processed as a trade creditor or a subcontractor.
Processing as a trade creditor does not give the same protection as processing as a subcontractor using the payment schedule and cost type SC and checking subbie statement.
Mandatory insurances can be setup for a creditor which applies regardless of how the transaction is processed so is not a variable in the above scenario.
Some companies may choose to want to process creditors setup with the consultant box ticked to be processed as trade creditors because they are potentially providing professional advice and not having a presence on the construction site so the only check would be WC, PL and PI insurance depending on the scenario.
Cost types setup can restrict how transactions are processed however there is still the scenario where an external labour hire invoice can be processed as a trade creditor.
I am seeing user behaviour where external labour hire is being processed to LB cost type using trade creditor e-invoicing.
Recommended solutions:
Option 1
Setup a system parameter that turns on a feature in creditor maintenance that enables a box to be ticked to restrict processing to SC cost type and then cost types maintenance can be used to restrict processing to a SC payment schedule
Option 2
Setup a system parameter that turns on a feature in creditor maintenance that enables a box to be ticked to restrict processing to SC payment schedule only.
