Kahua has published updates to the Release Notes for the 2022.8 Release which is scheduled for December 17, 2022. Click the link to access the release notes.  (published November 21, 2022)

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Associated Contract Lines (ACL)

Overview:

Associating Contract Lines (ACL) with Change Order lines allows the change order process to add or subtract scope (money) to existing contract lines.  This can be net new scope for the contract, moving scope-of-work between contract line items, or a mix of both. The net of a contract line and its associated change order lines merge on the SOV breakdown or the Pay Request, depending on the type of contract. 

[TK1] For SOV based contracts, the SOV Breakdown brings together the associated contract lines and change order items.

For non-SOV based contracts, the associated contract lines and change order items come together on the Pay Request.

NOTE: The Associated Contract Line fully respects the new Item Level Entry Types and the new Lump Sum Entry Type, available in 2022.5.

NOTE: ACL functionality is currently not available on Funding Contracts.

 

For more information, see Expense Contracts 

For more information, see SOV Breakdown

For more information, see Change Orders

For more information, see Pay Requests

 

Configure Associated Contract Lines (ACL)

To enable the ACL option on Contracts: 

  1. Navigate to Configuration/ Expense Contracts
  2. Go to the fields sub-tab and click override
  3. Ensure that “Associate Change Order Lines to Contract Lines” is enabled. 

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The user can configure to have associated change order lines and breakdown to be on by or off by default using the Defaults tab.

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Enable Associated Contract Lines (ACL) on a Contract

For SOV Based contracts, ensure that SOV breakdown and ACL are turned on when creating a new contract. 

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For non-SOV based contracts, do not enable Use SOV Breakdown.

 

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NOTE: you can turn Associated Contract Lines on or off for a contract at any time. Any existing Change Order items associated to a contract item will continue to respect the association, but the user won’t see the ACL fields and controls.

Using ACL on a Change Order

The association between contract lines and change order line items is set up on the change order item user interface.

  • Create Change Order for that contract
  • In the Change Order item grid, choose the contract line to associate to the change order item:
    1. Once selected, the change order item’s Activity Code and Cost Item Type are set to read-only.
    2. The system always copies down some information from the associated contract line: Activity Code, Cost Item Type, Description, UOM, Unit Price (if applicable) 
    3. Item Level Entry Type
      • If the Change Order is using document level Entry Type, the new change order item will use that Entry type
      • If the change order uses Item Level Entry type, the change order item type will default to the associated contract item’s entry type, but can be edited later by the user. 

Sample Change Order: item 01 is associated to Contract Line 03, and item 02 is normal - not associated to any Contract LineGraphical user interface, application, Word

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ACL and SOV Based Contracts

For SOV based contracts, the associated contract lines and change order items come together on the SOV Breakdown commitment items.

On the contract’s SOV Breakdown, select the Change Order to add to the SOVGraphical user interface, application

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 Normal (not ACL) change order lines are added to the SOV per existing functionality, with the Change Order as the grouping header and one row per change order item underneath. 

Unassociated $10,000 change order line added to SOV Breakdown for Change Order CO-001.

 

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Change order lines associated to contract lines are automatically “merged”, displaying the original contract line amount, net changes due to associated changed order items, summing to the current committed value. 

The resulting committed amount can now be allocated over existing or new child SOV items. 

A $25,000 Change Order line is associated with Item 03 of Contract 002

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SOV Items optionally include a system-generated SOV Item based on the associated change order item. 

Below the SOV Items grid, the change order items make up the Net Changes from all associated change order items. 

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Here’s how the numbers work:

  • The system brings together the Original amount + Net Changes to show the current Commitment
  • The Original amount comes from the original contract line. 
  • The Net Change amount comes from all the change order items associated with this contract line.  It can be negative or positive, or neutral. 
  • The current Committed amount can be partially or fully allocated by the SOV Items.
  • The Auto Allocate option fully supports ACL driven changes to the Committed amount. As Net Changes occur, the Auto Allocate item will ensure the updated Committed amount is fully allocated.
  • The SOV items may be manually added or edited. In addition, the ACL process can be configured to automatically add new SOV items when new associated change order items are added to the SOV.  
     

ACL and non-SOV Based Contracts

For non-SOV based contracts, the associated contract lines and change order items come together on the Pay Request.

The process to associate change order items to contract lines, ie the ACL process, is the same for SOV and non-SOV contracts. 

We’ll use the same sample as above to describe ACL and non-SOV contracts.

Create a contract, enable associate change order lines, and do not enable SOV Breakdown:

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Associate Change Order Item to Contract Item on Change Order. 

This example has a $25,000 Change Order associated with item 03 on contract 02. 

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Create a Pay Request and associate the approved Change Order to the Pay Request. 

 

Pulling the Change Order into the Pay Request will merge any change order items associated to contract items on the Pay Request, unlike SOV-based contracts from the previous section where the changes were merged in the SOV Breakdown.

 

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Change Order Items that were associated to contract lines on the Change Order will show up as Net Changes to the existing contract lines on the Pay Request. In this example there was $25,000 Change Order Line associated to a contract line with an original contract value of $350,000, creating a net change if $25,000. The new value (eg: $375,000) created by the net change and original contract is called the Scheduled Value.

 

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Normal (Non-Associated) Change order items appear normally on the Pay request. They appear as child items to the Change Order summary row. Please note the Net Changes Detail section under the Change Order item on the pay request shows where some (or all) of the items on the Change Order’s are associated to.Graphical user interface

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