Subcontractor Billing Solution on SAP ERP / S4 HANA Platform

Challenges:

Construction business is one of the most challenging businesses involving huge coordination & documentation with subcontractors for non-core activities commissioned to them. As a part of contract, companies have to pay advances, issue materials etc. to subcontractors. It is difficult to track advances, material issued to
subcontractors, arrive on accurate escalation percentages etc. This has led to construction industry looking seriously to standardise & automate entire subcontracting process to provide faster and more accurate results.
Keeping all challenges in mind, Highbar has come out with strategic solution for subcontractor process management, which is built on SAP ECC ERP or SAP S/4 HANA Platform & integrated with existing processes.

Solution:

Ensure that key business processes are integrated seamlessly thus reducing the business risks by increasing the accuracy and reliability of business data and boosting productivity and revenue by automating routing.

- Process Improvement – system driven processes
- Transparency into processes execution as data managed and reconciled in the system
- Supports ECC/S4 HANA Applications
- On-premise/Cloud deployment
- Quick & Easy Deployment
- Solution Flexible, Scalable
Key Features
- Strategic tool which aligns multiple business activities with business objectives
- Client BOQ upload
- Detailed Work Order creation with applicable terms & conditions
  - Retention %, escalation parameters, Advance recovery, materials to be issued & its recovery
  - Statutory details like Withholding Tax, Labour Cess, etc.,
- RFI Creation and Print based on BOQ executed
- RFI Confirmation/Approval
- DPR Quantity Confirmation
- Subcon Work done quantity confirmation in RA Bill based on approved DPR
- System driven calculations for escalation, advance recovery & material recovery
- Subcon Payment abstract processing,
  - Data flows from above subprocess
  - Option to maintain some items manually (e.g. Other recoveries, penalties, with-held etc.,)
  - Posting of vendor liability (Service entry) based on multiple level approvals
  - Posting of invoice verification & recoveries based on multiple level of approval
- Subcontractor RA Bill Abstract Print

Business Benefits
- Automatic recovery of advances given to subcontractor
- Auto reconciliation & recovery of materials issued subcontractor
- Inbuilt escalation calculation (quantity based)
- Reduced Overall Subcontractor management Cycle Time
  - Reduction in time for activity Measurements finalization
  - Efforts reduction in working hours by finance due to auto GR/IR
- Inventory Cost Control: Real time Material reconciliation is done based on considering work done and physical stock lying at subcontractor
- Revenue based Cash outflow
- Reduce business risk by increasing the accuracy and reliability of business data

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