Issuing a Back Charge

What is a Back Charge? 

A "back charge" is basically an offset for unexpected costs. Back charges can be incurred in a few different ways; defective work/materials (cost to properly complete/replace), damage to a job site (cost of repair), cleanup (costs incurred to maintain worker safety or compliance with OSHA/SWPPP) or inspection fees.

Why create a  Back Charge?

When a Back Charge is made, it needs to be applied to the appropriate project and commitment in Blueprint in order to accurately track each project budget. Once the credit is approved, it will be available for use on future projects or work contracted with the trade.

Who creates a Back Charge?

ConOps would send a request for a "Back Charge" using this BACK CHARGE FORM.

This form will notify the Purchasing Agent in the Market. The Purchasing Agent then goes in and creates a Commitment Change order (VPO) for the Back Charge. Then accounting will add the Vendor Credit to the VPO see the steps below:

*Note that Procurement may also need to create a Change Event or generate the "VPO" from the Change Event. The VPO would be for a negative amount. The process below will be the responsibility of our Accounting team.

How to Issue a Vendor Credit or Back Charge in Blueprint 

Step 1: Press "Add Vendor Credit" in the associated Commitment CO/VPO 

All vendor credits must be applied to a commitment change order/VPO, this guarantees that both the committed and actuals amounts align for line items in the budget. To draft a vendor credit, press "Add Vendor Credit" in the actions menu at the top right of the commitment change order/VPO screen. 

Read more on commitment change orders/VPOs here Issuing a Commitment Change Order (VPO)

Step 2: Enter in all Vendor Credit Details 

The required information to create a vendor credit includes:

• Credit Number
• Credit Date
• Credit Amount to the appropriate cost item
• Accompanying Documentation 

An optional description field is also present if further information is required for reference. 

Step 3: Press Create to Finalize the Vendor Credit 

Once all accompanying details are added to the vendor credit, press "Create." By pressing this button, the project manager associated with the build stage (pre-construction/construction) will be sent an automated notification to approve the credit.

Step 4: Project Manager approves the Vendor Credit 

From the automated notification, the project manager will be navigated to the credit overview screen. In this screen, they will click "Approvals" in the top right to add their approval and save. Once the credit is approved, it will appear as a negative bill against the commitment, completing the vendor credit process. 

To review your changes in the budget screen, find the associated line item and click the "Trade Billed" value. In drawer, you can see the composite of approved bills and credits against the line item.