Statement of Contract Payments

Canada Customs and Revenue Agency (CCRA) has initiated mandatory reporting of monies paid to sub-contractors in the construction industry.

To understand a bit more about why this reporting has been introduced, you can refer to the government web site for more information. http://www.ccra-adrc.gc.ca/tax/business/contract/index-e.html

The forms that are required have been placed on our website and can be viewed and printed. They are the T5018 Form and the T5018 Summary Form. If the forms are printed on a laser printer, they should be adequate for use for reporting purposes. The can be obtained from the local CCRA office.

To facilitate this reporting CMT has developed a set of reports that will satisfy the government requirements.

The reports can be reached by selecting option 39 on the CMT Functions Menu. When this option is selected, you are presented with the following screen.

HELP is available for each of the options on the menu.

Requirements For Use of The Reporting Functions

To enable use of the reports, the user must prepare the system by ensuring that the company GST number is entered on the appropriate place in the CS1000 Company Configuration. To perform this function go to COMENU and select option 2. Page through the options until the following screen is displayed.

The user should enter the company GST Registration Number where indicated as well as the account identifier below. Page through the remainder of the pages to save the information.

Vendor GST Information

In order for the system to know which vendors will be reported, the user must enter the GST Registration Number for each vendor and "flag" the vendors to be reported. Note that if a vendor is a sub-contractor in one situation, all that vendor's transactions will be reported. The system will not distinguish between GL accounts when calculating monies paid. It is our understanding that all monies must be reported for qualified vendors.

To enter the appropriate information for a vendor, select the Add/Change Vendors option (1 on AFMENU). The following screen will be displayed.

Enter the GST Reg. # where shown. Note that a dummy US Fed ID may be required to complete this screen. The user should enter a dummy number or the GST Reg. # to avoid an error message. The next line on the screen asks for "1099 Y,N". This is the indicator used by the base system for 1099 reporting - which is the US equivalent to our Contract Payments reporting. CMT uses this indicator to determine which vendors are to be reported. The user should enter a Y if the vendor is to be reported on the Contract Payment Forms.

This completes the system entries necessary to use the Contract Payments Reporting.

Running Contracts Payment Reporting

Step 1: Creating The File

The user should select option 1 on the Statement of Contract Payments Menu. This option will create the report file for the period selected. Note that the system uses the Accounts Payable Detail File to generate the reports. If the user has deleted the detail (by electing to delete details), the reporting will not function properly. CMT recommends that AP and AR detail should be saved for several years - in case it will be required to support an audit.

When option 1 is selected, the company selection screen is displayed. The user should enter the appropriate company number and press enter. Then, the following screen is displayed:

In this example, the required information has been completed. Here, the user is asking for the information for the 1999 year which includes all details falling into the period from 1999-01-01 through 1999-12-31. Note that the dates are entered in YYYYMMDD mode - this is common to all CMT programs. The GST Business ID is shown - this can be modified at this point for this one run, if necessary. When the information has been completed, the user should press Enter. The following screen is then presented.

Pressing Enter again will complete the generation of the file.

Statement of Contract Payment Reports

There are three options for the production of reports from this module. The first two reports provide detail and summary information about the vendors that have been designated. The third report is the production of the forms required by Canada Customs and Revenue Agency (CCRA). For the first year, a user could probably submit the summary report (option 2) and still be in compliance with the requirements.

Note that successful completion of step 1, creation of the file, is necessary before the reports can be run.

Print Contract Payment Detail

This option will provide a list of all detail entries for all vendors or a selected vendor. Since this report would be quite long, we don't recommend printing it unless absolutely necessary. Rather, we suggest printing the summary report and running the detail report and holding the print while any checking is done.

The report selection option screen is shown below.

Note that in this example, the user has selected the information from 1999 to be printed. The vendor number field has been left blank since all vendors are being printed. An example of the detail report format is shown below.

Print Contract Payment Detail Page: 1

100 CMT TEST COMPANY SCHUETTR

Accounting Year: 1999 From 1999-01-01 through 1999-12-31 SCP003

Busines Number: GSTBUSINE1234 2000-06-22

Vendor Name Vendor Sub No 10.41.12

Invoice ID Chq Date Cheque# Amount

10006 ABC SUPPLY COMPANY GST1112223

5 11103 800.00

****** Total Vendor 800.00

****** Grand Total 800.00

End of Report

Print Contract Payment Summary

This report is produced in the same manner as the detail report noted above. It shows a single line for each vendor - each line corresponding to one of the forms printed by the next option.

Print Statement of Contract Payment Forms

The forms are produced in the same manner as one of the reports. The forms are designed to be printed on a laser printer and should be properly formatted for any HP or Lexmark device.