HOMEBUILDER: PURCHASING USING VENDOR CONTRACTS

There are two methods for adding purchases to Lots in HomeBuilder (allocating costs to Lots).

• Vendor Contracts using Construction Items.
  • You purchase only items at prices that were pre-agreed.
  • This uses Construction Items (pre-set in the Lot Planning Lines).
• Ad-Hoc Purchasing.
  • Cost Detail Codes to automate bringing in the correct GL and setup.
  • Purchase any Construction Items against the Lot.
  • This method is explained in the article Ad-Hoc Purchasing.

Vendor Contracts using Construction Items

Search Purchase Invoices and create a new Purchase Invoice (standard BC functionality), and then on the Purchase Invoice Page:

• Click on the Actions button and then on the Button “Populate from Planning Lines”.
• Enter the Phase and Contract No. and click OK to open the page below, select the lines you want to bring in, and click on “Add Selected to Purchase Lines”.
  • Note: additional options only come into play if you are using the scheduling options.

• Back on the Purchase Invoice you will see the lines that came in. Repeat the previous process as often as you like to bring in new lines.
• Update the Direct Unit Cost Excl. Tax to match the vendor invoice
  • Decrease with no problem.
  • To increase you must either add a new Planning Line or adjust the Total Cost of the existing line.
• Post the invoice when you are ready.

“Vendor Contract” Concepts and Suggested Setups

Vendor Contracts are usually created when you have a pre-agreed price to complete a specific piece of work.

• It is not necessary to have a price, and there is still value in creating a Vendor Contract just to indicate which vendor will work on the specific item.
• Although not necessary, you may find it useful to have one series of Vendor Contracts for Base Contract Items and a different series for Upgrades and Extras.
• You access Vendor Contracts through:
  • Phases (Search: Phases).
• You can see the Vendor Contract No. in:
  • Model Items.
  • Phase Items.
  • Phase Planning Lines.
  • Lot Planning lines.
• You should have a “default” Vendor Contract on a Phase Item.
  • This default Vendor Contract is to be the default for ALL the models in this Phase.
  • This default is copied to the Lot (Planning Lines) when you either:
    • Site the Model on the Lot OR
    • Release the Lot Selection Package.
  • Note that any Item, e.g., Hardwood Floor, may belong to multiple Vendor Contracts; however, you may still only have one default against a specific Phase.

TroubleShooting

I cannot process (post) a simple Purchase Invoice – I want it to work for all Lots in this Phase.

This error relates to the Budget.

Solution: You must mass update the Budgets for all the Lots.

• Search Lots, then select all the Lots (e.g., in a complete Phase) to which you may wish to post purchases.
• Afterwards, select Actions, then Add Budget Revision.

• The next step: from the Cost Details page, select all and click on “Push to Lots” as shown below. When the next screen appears, choose all Lots (e.g., in a complete Phase) and click on the “Push to Lots” button.

Change Setup Part Way Through: I Added New House Areas to my Model and/or Item

Solution: update any information not under Construction.

• Search House Areas, then Create the House Area in page House Areas.

  • Not mandatory: add the House Area Measurement to the sub-table.

• Search Models, then select Model Items. From Model Items find the Items that you want to update:

  • Click on “Applicable House Areas”
  • Add the House Area.
  • Back on the Model Items Click on the Add Items button.
  • Select the Item and Click OK.

Change the Vendor Contract mid-way through a project

Example: "I’m Changing Vendor".

If you have already started work on Lots and need to change the Vendor Contract do as follows:

• Search Phases, then select Planning lines Action Button.
• Select The Planning Lines that you want to assign a new Vendor, then click Assign Vendor Contract Action Button.
• On the following screen you will be able to select a Vendor and a contract for the selected Planning Lines.