Payment Amounts against Drops Amounts

The validation of Payments against Drops is executed by the System.  This validation only applies if the Validate Payments Against Drops Parameter is true and if the Payment Type is a Normal Payment (refer to Contract Management System Parameters for more information).

The Payment Amount is validated when the Payment is detailed, this occurs when the Payment is associated with one or more Drops (refer to Payment Detail for more information).

Once a Normal Payment is Detailed the System will perform the following three validations:

Note: All three validations below must occur in order to for the System to Register the Payment.

  1. The System will validate the Current Physical Progress:

The Payment Detail Amount cannot be greater than Drop Amount multiplied by the Current Physical Drop Progress, the Formula used is: Payment Detail Amount <=  (Drop Amount * Drop Physical Current Progress).  Refer to Payment Detail and Contract Line Item Drops for more information.  

Note: The Physical Drop Progress depends of Goods/Services Receive Notes (GSRN) or Inspections if GSRN are not utilized.  (Refer Updating Drop Progress through GSRN (Goods/Services Receive Notes) or Register a Complete Inspection for more information).

Note: The System will do this validation when Payment is COMPLETED (refer to Complete/Make a Normal Payment or Complete/Make an Advance Payment for more information).

  1. The System will validate the Maximum Tolerance: Maximum Tolerance for Payment Amounts is a System Parameter (refer to Contract Management System Parameters for more information).

The Payment Detail Amount (refer to Payment Detail) cannot be greater than Drop Amount (refer to Contract Line Item Drops) according to the Current Physical Progress/Delivery plus Maximum Tolerance.

Note: This validation only applies for partial Payment and is performed twice, when a Payment is Planned and Completed (see Workflow Transitions for Normal Payments).

  1. The System will validate the Amount Currently Paid:  This validation includes Payments that are already made to a Drop.  The System Sums: the amounts (refer to Payment Detail) of all the Payments already made (Payment status equal to Approved).  This Sum plus amount of the present Payment cannot be greater than Drop Amount (refer to Contract Line Item Drops for more information).