About the payment application workflow

Use the payment application workflow to record and manage applications and valuations in line with regional construction industry practices and requirements, such as those in the United Kingdom.

Key features

Simplified workflow

Replace manual workarounds with a streamlined workflow that takes you from purchase order through application, valuation, and invoice.

Improved visibility

• Increase audit readiness and stakeholder confidence with clear, consistent visibility into application, valuation, and invoice documents.

Greater reporting accuracy

• Reduce period‑end adjustments by maintaining accurate, traceable payment amounts across reporting periods.

Enable the workflow on Purchasing transaction definitions

Define Purchasing transaction definitions for each stage of the workflow: Application, Valuation, and Invoice.

Key settings for each transaction definition:

• Enable payment application workflow: Enables the workflow for the selected transaction definition.

• Application document category: Specifies the document type: Application, Valuation, or Invoice.

Additional field requirements apply. See Enable the payment application workflow on Purchasing transaction definitions for details.

General steps

1. Create and post a purchase order or subcontract.
2. Convert the order to an application and post it.
3. When amounts are certified, convert the application to a valuation and post it.
4. Convert the valuation to an invoice.

Conversion rules

The following table describes how lines can be combined and converted as they progress through each workflow stage.

Payment application workflow conversion rules by stage

Stage	Conversion rule	Flexibility
Application	Can only be converted from a primary document. Lines must originate from the same primary document.	Can create multiple applications per primary document
Valuation	Can only be converted from an Application, not a primary document. Lines can come from multiple Applications, provided those lines originate from the same primary document.	Can create multiple valuations per application
Invoice	Can only be converted from a Valuation, not a primary document or Application. Lines can come from multiple Valuations based on the same primary document.	Can create multiple invoices per valuation

Posting and payment processing

Currently, applications and valuations do not post to Accounts Payable or General Ledger. The invoice is posted to Accounts Payable (AP) where it flows through your standard AP processes.

Terminology

Payment application terminology

Term	Description
Payment application (process)	The process used by a subcontractor or main contractor to request payment for work completed.
Document category	The type of workflow document: Application, Valuation, or Invoice.
Application	A document submitted to request payment for completed work.
Valuation	A document that records the certified amount approved for payment based on a surveyor's assessment of completed work.