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Material on Hand

Material on Hand

Owned by Support (Unlicensed)
Last updated: Dec 05, 2024 by Rachel Laudner
5 min read

Material on Hand provides the ability to track items on contracts that may have some or all of the quantity ‘on-hand’. Use the following instructions to add, use, zero out or remove material on hand.

When adding Material On Hand, you will want to increase the material on hand quantity before adding transactions!

A. To Create a Transaction Using Material on Hand:

  1. Go to Item Record Accounts, then search for and select (double click on) the item that has an ‘on hand’ quantity.

  2. Select ‘Transactions’.

  3. Click on ‘Add Transaction’

  4. Enter the required fields. If the item has available material on hand, the material on hand field will show and it can be determined if the transaction will be against material on hand or not.

B. Increase the Material on Hand Quantity:

  1. Go to Item Record Account, then search for and select (double click on) the item that has an ‘on hand’ quantity.

  2. Select ‘Material On Hand’.

  3. Click on ‘Add Material on Hand’.

  4. Add the required fields, including the date, quantity on hand, and value of on-hand material.

    1. Note, that the per unit value cannot exceed the awarded price of the item.

    2. The Amount field will be the total amount for that item for that quantity, at the bottom of the page, the Calculated Unit Price will be displayed for the user to verify it is correct.

  5. When entering transactions against this item, the user will now be able to select to enter the item transaction against the on-hand amount or not.

C. Removing Material on Hand/Zeroing out Material on Hand:

  1. Go to Item Record Accounts, then search for and select (double click on) the item that has an ‘on hand’ quantity.

  2. Select ‘Material On Hand’.

  3. Click on ‘Adjust’ next to the Material on Hand entry you would like to remove/modify or zero out.

  4. Enter the remaining amount and quantity (as negative entries) and save your changes.

 

OR

 

  1. Go to the Item Record Accounts and select the tab at top for Material on Hand.

  2. Click on the ‘zero out' icon next to each material on hand entry to reduce any remaining MOH to zero.

 

 

MN CUSTOMER USE CASE EXAMPLE: paying for materials prior to using them

There are times when you have a project item similar to MN Spec item 2301.502 Dowel Bar. The item is bid to fabricate and install. However, the contractor wants to be paid for materials up front, prior to any use/labor/installation. The previous (old federal highway) process was to add a backsheet with a lump sum for material on hand costs, pay that lump sum, and then add a backsheet to remove that item to credit that cost, then add transactions against original project item once they begin using/installing. This way, the materials were paid for up front, but you are not double paying, and you are properly transacting against the original item.

With our Material on Hand functionality, you no longer have to add/remove a new lump sum item on backsheets to get the same result.

  1. Under the IRA, select your item.

  2. Select “Material on Hand” from the list of item options.

    image-20241205-162018.png

  3. Add Material on Hand.

    1. in our example, let’s say spec item 2301.502 was awarded at $21/each and there is a quantity of 2599. That $21 is for materials and labor. So, when you are adding Material on Hand, you are ONLY adding the dollar value for the material X the quantity. In this example, we will use $13/each for material cost.

    2. Your quantity will be the total quantity of materials you are paying, most likely the total quantity. For our purposes, it will be 2599.

    3. Your amount will be the quantity X the material cost ($13). Click Save.

      image-20241205-162215.png
      image-20241205-162342.png

       

    4. This cost has automatically been added as a line item (transaction) in the background. You do NOT have to add a separate transaction against the MoH to pay for these Materials.

    5. IF you want to ‘use’ the Material on Hand quantity (instead of ‘using’ the original item quantity), you would add a transaction and add the quantity under the ‘on hand quantity’ line. (Instructions in List A above)

  4. To pay for the materials, navigate to Payments.

    1. Make sure the ‘up through’ date is inclusive of your MoH date.

    2. Click ‘Details’ next to your payment.

    3. In the menu, select ‘Transactions’

    4. You will see an item with information like this with “MOH - Added”. This means you are only paying for the materials cost, and not notating any transactions/usage of the material.

      image-20241205-162805.png

       

  5. Now, let’s say construction begins and the contractor is going to perform the work for that Dowel Bar. You do not want to over pay them, because you already paid material costs, but you want to add transactions to the original item.

    1. Under the Item Record Account, at the top, select the Material on Hand tab.

    2. Select the “reduce quantity to zero” icon (gray circle with a line through it).

    3. What this does is adds a ‘negative’ payment value for the MoH (a credit to your agency, a deduction from the contractor payment)

  6. Navigate to the IRA page, select the original contract item, add transactions for usage against that item. For this example, I added a transaction for the total quantity of 2599.

  7. When I add a payment, click on details next to the payment and click “Transactions” in the menu.

  8. You will see the new transaction for the original item (at $21/each), and the deduction for the MoH cost you previously paid for (at $13/each).

    image-20241205-163716.png

     

*You no longer need to use backsheets or contract changes to accommodate this process.




 

 

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