Enter Item Valuation

Explanation

Use this activity to enter valuation values on the application. After valuating the work, the values must be entered for each item with a difference in value since the previous application. The values to be entered are:

Accumulated value of an item.
Accumulated stored material value on an item.

Normally the accumulated value of an item is the value of the item itself, and the stored material is additional material needed to perform work on the item. Either way it contributes to the increased accumulated cost on the contract, and it should be included in the application for payment.

The accumulated values should be set based on the valuation method for the item (Progress, Quantity, Fixed Cost Value, and Fixed Sales Value). If the valuation method Cost Plus is used, it will not be possible to enter a valuation value on the item, but instead the valuation will be based on the project cost plus the actual mark up defined on the corresponding project cost element; see below for details. The project costs & mark up values can either be entered manually in the Project Cost Details window or can be retrieved directly from project activities connected to the item.

See the Copy Previous Valuation activity for details on how to re-use valuations from the previous application.

Valuation Method	Valuation Value
Quantity	The total accumulated number of pieces completed for this line item on this application and all previous applications.
Progress	The total accumulated percentage progress for this line item on this application and all previous applications.
Fixed Cost Value	The total accumulated cost value for this line item on this application and all previous applications.
Fixed Sales Value	The total accumulated sales value for this line item on this application and all previous applications.
Cost Plus	The total accumulated cost is calculated as the sum of products of costs and the actual mark ups defined on corresponding project cost elements.

For detailed information on how the other columns will be calculated refer to the Estimate Contract activity.

Note: Under normal circumstances the total valuation of an item should not exceed the total sales value of the item as defined on the contract. However, you will be allowed to save valuation values higher than the sales value if the need arises.

Prerequisites

The application must be in the Planned status.

System Effects

The application will be valued and ready for approval.

Window

Application for Payment

Related Window Descriptions

Application for Payment/Item Valuation

Procedure

On the upper table of the Application for Payment/Item Valuation tab, select the line that the item to be valued belongs.
For each line item that needs to be valuated, modify the Valuation Value fields in the items table.
Note: Keep in mind that the value is cumulative and that it should be set based on the valuation method. When adding stored material values, keep in mind that the stored material should not exist as a separate line item.
If Cost Plus is used as the valuation method, enter values in the Project Cost columns for each Project Cost Element. The total cost will then be summarized to the Project Cost field You cannot enter a value in the Valuation Value field manually when the valuation method is Cost Plus.
Save the information.

Column Name	Description
Valuation value	Value to apply for. See description above on Valuation Method for how this should be entered. Can be entered only if the valuation method is not Cost Plus
Stored material	Value of any stored material that you will have in addition to the line item itself.

In a US Sales Tax environment, if you want to view which tax codes apply to specific items, right-click on the item line and then click Application Item Taxes. The Application Item Taxes dialog box opens.