Maintaining Item Adjustments for a Payment Estimate
In this Topic
The Item Adjustments tab on the Contract Payment Estimate Summary provides information about payment estimate adjustments at the item level and allows you to add, change and delete user-generated item adjustments.
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Note: To add, change, or delete an existing user-generated item adjustment, the payment estimate must be in Draft status. The system automatically recalculates and updates related funding and retainage information for the contract and the payment estimate item when an item adjustment is added, changed, or deleted.
Item adjustments can result from item overruns, price changes, stockpile adjustments, and for other reasons defined by your agency. The system allocates all item adjustment amounts to the funding vehicles already associated with the item (just as it would for the installed quantity on an approved DWR). The Item Adjustments tab displays a row for each item adjustment associated with the payment estimate. Item adjustments are grouped by type in three collapsible sections.
User-Generated Quantity-Based Item Adjustments
This section of the Item Adjustments tab displays an accordion list of all the adjustments made manually to item quantities for the payment estimate. User-generated quantity-based item adjustments are temporary adjustments made against a line item with an approved DWR installed quantity included on the current payment estimate, and they affect quantity as well as dollars on the item.
There is only one type of user-generated quantity-based item adjustments, Other Item Adjustment, and you can only create one per item. The system displays the Posted Quantity This Pay Estimate for the selected line item, and you specify a Pay Quantity This Pay Estimate between zero and the posted quantity. This is only a temporary adjustment, as the system automatically creates a counteracting system-based adjustment on the very next payment estimate that reverses the original user-based adjustment.
Expand a row to view or maintain information for a quantity-based item adjustment. Each row contains an Action button and current values for these fields:
You can change information in the Other Item Adjustment Type, Comments, and Pay Quantity This Pay Estimate fields. To view more information about an item adjustment, expand the Additional Item Information section to display these fields.
To delete a user-generated adjustment, select Delete from the Actions menu on the adjustment row.
When you are finished making changes, click Save to apply your changes to the system. The system displays a message to confirm that the new information was saved in the database and automatically recalculates the payment estimate.
User-Generated Dollar-Based Item Adjustments
This section the Item Adjustments tab displays an accordion list of all the adjustments made manually to item dollar amounts for the payment estimate. User-generated dollar-based item adjustments are permanent adjustments made against any payable line item on the contract, and they only affect dollars on the item. There are only two types of user-generated dollar-based item adjustments: Other Item Adjustment or Overrun, and you can create as many per item as you need. Enter the specific amount of the adjustment on the item. This is a permanent adjustment that the system will never attempt to reverse in any way. You can only reverse or change a dollar-based item adjustment by manually creating another dollar-based item adjustment on the same or later payment estimate.
Expand a row to view or maintain information for a dollar-based item adjustment. Each row contains an Action button and current values for these fields:
You can change information in the Type, Other Item Adjustment Type, Amount, and Comments fields. To view more information about an item adjustment, expand the Additional Item Information section to display these fields.
To delete a user-generated adjustment, select Delete from the Actions menu on the adjustment's row.
When you are finished making changes, click Save to apply your changes to the system. The system displays a message to confirm that the new information was saved in the database and automatically recalculates the payment estimate.
Adding a User-Generated Item Adjustment
Follow these steps to manually add quantity-based or dollar-based item adjustments to the estimate:
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Expand the section on the Item Adjustments tab in which you want to add item adjustments (quantity-based or dollar-based).
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Click the Select Project Items button in that section.
The system displays a modal window for selecting project items. -
Locate the items you want to adjust.
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Click the row for each item you want to adjust.
The system adds a check mark beside each item you select and shades the row. To cancel a selection, click the selected row again. -
Click the Add to Item Adjustments button.
The system closes the modal window and takes you to the Item Adjustments tab with the new adjustments added to the list. -
If you are adding a dollar-based item adjustment, you must enter a value in the Amount field. If you are adding a quantity-based item adjustment, you must enter a value in the Pay Quantity This Pay Estimate field.
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Enter information in other fields as needed and click Save.
System-Generated Item Adjustments
The System-Generated Contract Adjustments section of the Item Adjustments tab displays an accordion list of all item adjustments that have been created by the system for the payment estimate. The information in this section is for viewing only; you cannot modify a system-generated item adjustment.
When a payment estimate is added, the system compares the reference item on the price adjustment index for the contract to the DWR item on the payment estimate. If the items match, and there is a value in the Unit Value Quantity field on the reference price index, the system automatically creates an item adjustment. Whether the item adjustment uses the date from the DWR or the payment estimate depends on the setting for the Calculate Price Adjustment Method agency option.
When a payment estimate is added that requires a positive or negative overrun adjustment, as much of the overrun as possible is applied to the quantity installed on the current payment estimate. If any overrun remains, it is applied to the approved quantity from previous payment estimates using the average of all price item adjustments applied for this item during the course of this contract.
When a materials acceptance action is insufficient, the system generates a dollar-based item adjustment on the pay estimate if the insufficient materials exception is set to any value other than Not Calculated or Displayed. If the system generates both an insufficient materials exception and an overrun exception on a payment estimate, the greater of the two is applied (that is, the estimate that produces the more negative total balance). If the exceptions are equal, the insufficient materials exception takes precedence.
When a payment estimate is added that requires payment by manual transaction or for a recovery amount made on a stockpile for an item, the system automatically creates an item adjustment for each.
When a payment estimate has an exception that would create an item adjustment, you must override the exception before the system can generate the adjustment. If the exception has a status of Unresolved or Acknowledged, the system will not generate the item adjustment. You can override a payment estimate exception on the Exceptions tab (see Maintaining Exceptions for a Payment Estimate).
The system is capable of generating any type of system-based item adjustment depending on your agency's option settings, however, system-based item adjustments are the only source of a stockpile adjustment. If you want to directly control the amounts related to a construction stockpile, you must do this on the Construction Stockpile component. The change is reflected in a system-generated retainage adjustment on the next payment estimate added to the contract, unless the stockpile is paused.
To view or maintain information about a construction stockpile related to a system-generated item adjustment, select Open Construction Stockpile from the Actions menu on the item adjustment row. For more information, see Managing Construction Stockpiles.
Each item adjustment row contains an Actions button and current values in these fields:
To view more information about an item adjustment, expand the Additional Item Information section to display these fields.
Additional Item Information
To view more information about any type of item adjustment on the Item Adjustments tab, expand the Additional Item Information section in any row to display these fields:
Maintaining a Contract Payment Estimate
