OVERVIEW

The Muli Accounts Payable cycle starts at the time you place an order and effectively are making a commitment against a project - because Muli construction accounting software will only process an invoice against an Order or a Subcontract.

Many companies are heading for the paperless office and MULI provides this concept.

PROCESSING INVOICES

Supplier and subcontractor invoices are entered and processed through the incoming register against the relevant project, cost code and order.

If the Supplier record shows there is an RCTI Agreement sighned then you can process a Worksheet Claim and then produce their Recient Created Tax Invoice. This reduces your GST administration in having to obtain a revised Tax invoice and credit note each time a Subcontract claim is adjusted.

The following is a extract from the ATO.
Subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) provides that a recipient created tax invoice is a tax invoice belonging to a class of tax invoices that the Commissioner has determined in writing may be issued by the recipient of a taxable supply. 

The Commissioner has issued a legislative determination - A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 27) 2000. (RCTI Determination 2000/27) A recipient of a taxable supply of construction work or related goods and services may issue a RCTI subject to conditions in clause 4 of RCTI Determination 2000/27 which include the recipient:

 (i) makes taxable supplies of construction work or related goods and services;
(ii) reviews progress claims or relies on certification (where an independent valuation process is undertaken) to determine amounts to be paid to the supplier;

(iii) has a current GST turnover or projected GST turnover of greater than one million s;
(iv) satisfies the requirements set out in Clause 5;

    Project Managers in remote offices may authorise payment online and take advantage of the option to attach scanned documents – eliminating the need to forward documents. Saves time & eliminates issues from lost paperwork.

    APPROVAL PROCESSES

    Muli can pay a supplier’s single invoice or for subcontractors, Muli can produce a full payment schedule with payment advice. This meets the Security of Payments Act notification requirements and provides management with payment progress and expected outcomes.

    CONTROLS

    Muli applies controls to payments to ensure that committed constraints are observed. In addition, the payment process can include a verification of the status of subcontractors insurance.

    PAYMENTS AND CASHFLOW

    Payments can be made by cheque or direct deposit with detailed remittance advice sent by mail or email.

    The Muli Accounts Payable module stores payment transactions by due date, so this information is available for Cash Flow Forecasting.