UNDER CONSTRUCTION…
Description
FastTrack360 now supports the ability to assign payment terms to a contractor so that the payment of their timesheets can be deferred until the payment terms due date, as calculated by the system based on the applicable payment terms, has been reached.
Normally an interpreted timesheet is included in a pay batch if the timesheet end date falls within the date range of the current (open) pay period or, for adjustment pays, the date range of the adjustment period. If a timesheet is subject to payment terms, the timesheet will only be included in a pay batch if:
the payment terms due date falls within the current period of the pay batch - for all payroll countries except the United Kingdom
the payment terms due date falls on or after the start date of the current period of the pay batch but before the current period normal pay date - for the United Kingdom only.
The current period normal pay date is the predefined payment date for the corresponding pay period, as defined in Pay Group Maintenance.
For example, consider a scenario where the pay period cycle is weekly, a timesheet is for the work period 13/02/2022 - 19/02/2022 and the payment terms apply a payment offset of 28 days from the pay period end date. In that scenario, the payment terms due date would be 19/03/2022 (i.e. 28 days after 13/02/2022) and therefore the timesheet will not be paid until the period 13/03/2022 - 19/03/2022.
A timesheet that is subject to payment terms is never paid in the current period to which the timesheet corresponds based on its timesheet end date and therefore the timesheet can only be paid in:
an adjustment pay batch for the adjustment period into which the timesheet end date falls
a normal pay batch for a pay group that has the Include Prior Period Timesheets in Current Period option enabled (for more information, see Including Prior Period Timesheets in Pay Batches).
In either case, the timesheet will not be included in the pay batch unless the payment terms dues date is within the current (open) pay period or, for the United Kingdom, on or after the pay period start date but before the normal pay date of the current pay period.
To help identify the periods in which such timesheets are due to be paid a new report called Contractor Payment Terms Due Date is available. For more information, see Contractor Payment Terms Due Date Report.
A proforma remittance can be generated and issued to the contractor when their timesheet is approved and has undergone interpretation as an interim indication of what the contractor will be paid once the payment terms due date is reached and the timesheet is paid. For more information, see Generating Proforma Remittance Advice.
Need to mention the following:
report to identify the payment terms due date of timesheets and the periods in which they must be paid
examples
types of payees to whom payment terms can be assigned for each payroll country.
Benefits
This enhancement allows payment to a contractor to be deferred until after the client, to whom the contractor has provided services, has paid the invoice for the service that were provided.