Contractor Timesheets (Recipient Created Tax Invoice)

Owned by Maria Harreguy
Last updated: Sept 20, 2022
3 min read

Overview:

This feature supports the scenario where the preference is for the contractor to capture their time directly in Workbench, rather than the Dockets approach where an internal supervisor creates the timesheets on behalf of the subcontractor or the Contractor Daysheets approach where the Contractors enter external labour themselves. The typical scenario is for people that work at a company for a long period of time but as a Contractor rather than as an employee. As part of this process, the Accounts team creates a Recipient Created Tax Invoice (RCTI AP Invoice or also called Buyer Created Invoice - BCI) for the Contractor’s company, where those Timesheet Lines can be reconciled (similar to the process with Dockets to reconcile a Supplier AP Invoice for purchased items) and the Payment can be recorded against it. The benefit of this from an accounting perspective is to keep these costs separate from the Labour Costs. When these transactions are exported to the Financial System they use Purchase GL accounts instead of being included in the Labour accounts, ensuring that the Labour recovery calculation reflects the correct values.

There are numerous benefits to this method, you can have a timesheet group for Contractors, have real Timesheets to review the hours for the week and follow the standard Timesheet approval process, and can use activity types like Time, Disbursements, Plant (for Plant issues linked to the timesheet), and get external people to enter their own time on Timesheets.

Screen Guide:

  • Subcontractor Company is setup indicating ‘Use Buyer Created Invoices’.

  • Employee Class is setup for subcontractor users with a recovery GL Account.

  • Activities are setup for subcontractor users who will be entering standard time activities.

  • Subcontractor User is setup as per Subcontractor Portal user, linked to subcontractor company, but ticked as employee with subcontractor Employee Class.

  • The subcontractor user has a Timesheet licence.

  • A Site licence for BCI Timesheets is also required.

  • Site Map Profile for subcontractor users should be ‘Contractor’ and this will include Timesheet Daily (token = Timesheets/List.aspx/Daily).

  • Profit Centre Group must be set up to limit to applicable jobs for timesheets.

  • Setting 'BCI Timesheet Job' by FinCo specifies the Job to use for the aggregate transaction when selecting timesheets for a Buyer Created Invoice.

  • Setting 'BCI Timesheet Activity' by FinCo specifies the Activity Code to use for the aggregate transaction when selecting timesheets for a Buyer Created Invoice.

  • Set up a GL Account that will be used as a clearing account for this process.

  • This is specified on both the employee class recovery GL account (when it is a credit), and on the activity which will be used on the RCTI line (when it is a debit).

  • So after the labour journal and the AP Invoice have been posted, this clearing account will net to zero in the GL and we will be left with (a) job costs from the timesheet (debit) and (b) Account Payable (credit).

  • There will need to be specific employee classes configured, different from standard employees.

  • A specific Job and Activity are required to put the RCTI lines against. These are defined on the settings mentioned on Configuration and are solely used for this purpose. Should not be available for selection on any Data Entry screen (make sure to exclude from PC groups and Activity groups).

Subcontractor User Process

  • Timesheet Daily will be used by the subcontractor user entering standard time activities; these could be limited by their activity group to the relevant activities.

AP Invoice Process

  • BCI Timesheet Lines button displays a popup of timesheets to select for generating AP invoice summary line. The button is hidden if BCI flag is not enabled for the supplier.

  • The Invoice No is automatically generated and can also be edited and changed.

  • The selected timesheet lines are aggregated and coded as per the BCI Timesheet settings.

  • The standard ‘Recipient Created Tax Invoice with Dockets, Timesheets’ report can be used for this type of invoice.

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