Prepare and Validate Interim Payment Certificates (IPCs)

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Prepare and Validate Interim Payment Certificates (IPCs) within SmartERP.

Measuring monthly work progress, resident engineer certification, advance payment deductions, retention withholding, and billing.

{screenshot:interim-payment-certificates-ipc-overview-dashboard}

2. Prerequisites & Security Access Groups#

• Required Modules: project, smarterp_project_governance, hr_timesheet
• Security Groups:
  • Project User (Technical ID: project.group_project_user)
  • Project Administrator (Technical ID: project.group_project_manager)
  • Timesheet Approver (Technical ID: hr_timesheet.group_hr_timesheet_approver)
• Master Data Dependencies: Project master records, milestone stages, work breakdown structures (WBS), bill of quantities (BoQ), and employee billing cost rates.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the Projects app icon.
4. From the top navigation bar, open Projects → Dashboard → My Tasks / All Projects; Timesheets → Timesheets.

{screenshot:interim-payment-certificates-ipc-app-switcher-navigation}

Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Project / Task Name (Mandatory): Descriptive title of work package or milestone deliverable
   • Assigned Project Team (Mandatory): Lead project manager and operational contributors
   • Planned Dates (Mandatory): Scheduled commencement and milestone completion deadlines
   • Customer / Stakeholder (Mandatory): Client partner linked to project contract and invoicing terms
3. Configure optional operational parameters and localized tags as required:
   • Analytic Cost Center (Optional): Dedicated project accounting account for expenditure tracking
   • Bill of Quantities (BoQ) Line (Optional): Specific contractual BoQ item code for construction tracking
   • Milestone Billing Weight (Optional): Percentage of contract value tied to milestone acceptance
4. Click the Save icon in the control bar to commit the record.

{screenshot:interim-payment-certificates-ipc-record-creation-form}

Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (New / Scoping → In Progress → Review / Testing → Completed → Archived).
• Ledger & System Impact: Timesheet confirmations and project purchases post direct expenditures to the project analytic account, enabling real-time cost vs. revenue margin analysis.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

{screenshot:interim-payment-certificates-ipc-transaction-processing-state}

The Interim Payment Certificate (IPC) Workflow#

The Interim Payment Certificate (smarterp_construction_payment_request) is the formal legal instrument through which a contractor claims payment for executed work.

[project-boq-ipc-lifecycle]

The IPC Mathematical Valuation Equation#

Each IPC calculates net payable amounts through strict cumulative accounting:

$$\text{Gross Work Executed to Date} = \sum (\text{Cumulative Measured Quantity}_i \times \text{Contract Unit Rate}_i)$$

$$\text{Current Period Gross} = \text{Gross Work to Date} - \text{Previous Gross Certified}$$

$$\text{Net Payable Before VAT} = \text{Current Gross} - \text{Advance Recovery} - \text{5\% Retention Withheld} + \text{Materials on Site (80\%)}$$

$$\text{Total Invoice Amount} = \text{Net Payable Before VAT} + 15\% \text{ VAT}$$

Procedure: Generating an IPC#

1. Navigate to Projects > Construction > Payment Requests (IPC) and click New.
2. Select Project and enter Certificate Number (e.g., IPC #06 - Meskerem 2019).
3. Under BoQ Measurement Sheet:
   • Enter Cumulative Quantity to Date for each executed line item (e.g., C-25 Concrete Columns: Previous 210 m3, This Period 85 m3, Total 295 m3).
4. Under Deductions & Adjustments:
   • The system automatically calculates 25% Advance Payment Recovery.
   • The system automatically withholds 5% Retention Money into escrow.
5. Click Submit to Resident Engineer.
6. Attach joint site measurement sheets signed by the consultant quantity surveyor.
7. Upon consultant approval, click Generate Client VAT Invoice.
8. SmartERP creates the commercial VAT invoice with withholding tax receivable tracking.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • Project: Flag overdue milestone deadlines (project.ir_cron_overdue_tasks): Runs daily to notify project managers of pending schedule delays
  • Timesheets: Send unsubmitted reminder alerts (hr_timesheet.ir_cron_timesheet_reminder): Runs weekly on Friday afternoon to remind team members
• Custom Print Templates & Reports:
  • Project Status & Milestone Execution Scorecard
  • Interim Payment Certificate (IPC) for Construction
  • Project Timesheet & Resource Utilization Summary
  • Earned Value Management (EVM) Financial Report
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#