Subcontractor Ledger

The MCA Subcontractor Ledger is included as part of our core accounting package.  It is fully compatible for labour only and supply & fix Subcontractors.  Our Subcontractor Ledger caters for all aspects and legislative requirements of the CIS scheme and is recognised by HMRC for online filing including Subcontractor verification.

Processing of Invoices, Applications and Certificates (self billing and authenticated receipt) is all provided for.  Applications from Subcontractors can be recorded and costed.  Our full authorisation for payment process provides secure control of Subcontractor payments.  MCA maintains a database of information on each subcontractor that can be accessed and updated at any time.

Subcontractor Management

Subcontractor details are easily maintained for all job/contract activities. Subcontractor codes can be 16 digits long and can be either alpha and/or numeric.  All aspects of an engagement can be recorded from agreement set-up to final payment and closeout. For longer-term engagements, records of tasks and activities, both planned and completed, are maintained during all periods of a contract. 

The Subcontractor record provides:

• Personal details, covering contact information, VAT registration and trade
• Bank details, with agreed methods and periods for payment
• CIS details
• Insurance details
• Subcontractor Ordering
• Order values vs actual values

 Processing

Any number of transactions can be entered onto a batch within the Subcontractor module.  The internal reference and Due Date can be automatically generated, as well as the auto calculation of VAT, Tax, retention discount and CITB.  These have all been developed to help reduce the administrative work involved, however they are optional and can be switched on or off accordingly.  The cumulative and movement processing of certificates is available as well as the entry of contra values.

The relationship between the Subcontractor and contracts is set by the order maintenance screen.  The make up of each order can be completely different e.g. one order may be cumulative with a retention discount whilst another may be movement.  As with other MCA modules there is the on-hold functionality, which allows the user to adjust the notes and due dates once the batch has been accepted.

Subcontractor orders can be raised, creating committed costs and allowing for monitoring of order values vs actual values; which in turn are monitored against valuations and payments. 

Payments (including the authorisation of)

Our payment routine has been developed to be very controlled whilst still easy to use.  The user can decide to pay one Subcontractor, numerous Subcontractors or specific invoices.  There is the opportunity to go back and adjust the selection before updating.  Payments can be made by cheque or BACS.  Incorporated within the system is cheque printing and where necessary the facility to reprint if required.  Remittances can be printed using either plain or letterhead stationery. 

Within our Subcontractor module is the functionality for Authorisation of Payments (AOP).  This has been designed to lessen the administrative work involved as well as reducing the paper flow between the Contracting and Accounts departments.  All importantly this feature ensures MCA prompts when payments are due to Subcontractors. 

The trigger for an AOP is the receipt of an application from a Subcontractor.  The AOP will appear in an enquiry for the QS.  This allows them to certify a value, up to the amount applied.  They can also identify the cost analysis, retention and discount percentages for the Accounts Department to apply.  If required a second level of authorisation can be introduced before Accounts are able to make a payment. 

As you will see throughout MCA, the system has been designed with the end user in mind.  We have tried to reduce the amount of administrative work required wherever possible.  An example of this is in the generating of a certificate within the AOP section of our Subcontractor module.  Information keyed by the QS is automatically fed through to the payment calculation.

Either the Contracts Manager or the Accounts department can reject the QS's valuation, with the ability to add comments.  As with all functions in MCA, a permanent record of the cycle from application to payment is available providing a complete audit trail. 

Certificates and Insurance

Processing is prevented in the Subcontractor Ledger until CIS details are entered onto the system.  A full audit trail of CIS history is maintained and can be easily viewed at any time.  Insurance details are validated.  Printing of certificates can be on either plain or letterhead stationery.

Contract Terms

Where dictated by contract terms, the system will automatically issue an Authenticated Receipt or Self Billing Document.  Retention and discount terms can be defined against each contract.  These are calculated automatically at the time of payment.

Managing Subcontractor Performance

Each element of the subcontractor process can be monitored within the module, including the order, valuation and payment. Across every contract the stage of completion and financial performance is clearly visible.  This supports the task of controlling cost and assists in identifying and highlighting problems.

Database

The fully integrated structure means that data is entered only once, as it automatically updates all other related entries, thereby saving time and reducing errors.

Reporting

Extensive drilldown enquiries can be made which provides exceptional access to information throughout the entire system.  All the required reports are catered for within the Subcontractor Ledger module e.g. transaction list, age creditors, due listing, VAT list, CIS list etc... The generation of reports is a straightforward process.  All the reports can be altered and modified to cover a wide range of criteria ensuring the entire requirements of an individual user are met.  The bespoke reports can be saved for future use.   

A key feature within MCA is our complete transaction archive, this means that no transaction is ever deleted and a full audit trail is available for every transaction.  This feature also facilitates reports to be run retrospectively.  All enquiries and reports can be made in a multitude of reporting formats, including PDFs and a "1-Click" export to excel feature.