Invoicing with Stored Material and the AIA G703 Reports
Not version-specific
Tekla PowerFab
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Our interpretation of AIA Contract Documents document Payment Application Procedure G703 Continuation Sheet is this: The stored materials column should only include the value of materials currently stored and not previously stored and currently fabricated (completed).
The AIA Contract Documents document Payment Application Procedure G703 Continuation Sheet states the following: (underlining emphasis ours)
Column F: Enter here the value of Materials Presently Stored for which payment is sought. The total of the column must be recalculated at the end of each pay period. This value covers both materials newly stored for which payment is sought and materials previously stored which are not yet incorporated into the Project. Mere payment by the Owner for stored materials does not result in a deduction from this column. Only as materials are incorporated into the Project is their value deducted from this column and incorporated into column E (Work Completed--This Period.)
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Column F includes material newly stored for the invoice pay period and/or material that is still in storage from previous pay periods. This is regardless of whether the stored value has been paid on a previous pay app or not. The value of stored material should only be moved from column F (Stored Materials) to column E (Work Completed This Period) when the material is no longer in storage and has been "incorporated" into the project.
For this reason, the default report in Tekla PowerFab was designed to leave only the current value of non-completed (not incorporated) material in column F of the AIA G703 report.
When the time comes to move the value from the stored material column on the G703 report, the user should enter a negative value in the stored material field.
When looking at the invoice dialog, it in appears to have moved. See Suggested Customize Grid Display below for a recommended adjustment to the display fields that might help the invoice and the G703 report reflect each other more intuitively.
Suggested Customized Grid Display
It could be beneficial to add several columns to the display field so that the invoice and the G703 report are more in line with one another.
To do this, right-click in the invoice display area and select Customize grid.
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Click New Layout and enter a description if you do not already have a custom one (PowerFab will not allow you to edit the default layout).
At the very least, we recommend moving the fields Previous Storied Material and Total Stored Material to the list of included fields, but you might find other fields useful such as Previous Completed Work, Total Completed Work, Not Already Invoiced, etc. You can move the fields up or down or adjust their sort order as needed.
Save and apply the layout.
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After applying the layout, your new columns will show in the invoice display field.
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Stored materials workflow example
Here is an example of the way the value flows through the different buckets in several invoices and G703 reports. For the sake of demonstration, other values in the invoice have been omitted and this exercise will focus only on stored material.
Invoice #1 shows $100,000 of stored material.
Note that $100,000 was entered in the Stored Materials input field to reflect this.
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This is the G703 pay application report for invoice #1.
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The second invoice contains values of $25,000 for material that is still being stored and $75,000 for materials that have been incorporated into the project.
To move the values accordingly, put in the negative value in the Stored Materials field and the positive value in Current - Completed Work field.
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This is the G703 pay application report for invoice #2.
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Invoice 3 contains no more stored material since it has been completely incorporated in the project.
Similar to Invoice 2, move the values accordingly by putting in the negative value in the Stored Materials field and the positive value in Current - Completed Work field.
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This is the G703 pay application report for invoice #3.
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