Maintaining Sub-Contractor’s Certificates 

Use

If you are posting a proportion of your vendor invoice to your sub-contractor’s blocked account, your sub-contractor has to supply you with at least five certificates. Each certificate provides certain information on the sub-contractor’s registration and/or relationship with the certificate’s issuer, and is valid only for a certain period of time. In the interest of chain liability, it is important that the expiry dates do not lapse. 

These certificates include:

...

       1.      Declaration from the tax authority

       2.      Declaration from the social security authority

       3.      Declaration from the chamber of commerce

       4.      Declaration from the sub-contractor

       5.      Declaration from the bank at which the blocked account is held

In order to use the chain liability functions, in the system you need to represent the certificates supplied by your sub-contractor as tax categories. You then enter these certificates as tax categories in your vendor master data, together with their expiry dates.

The sub-contractor may supply two additional certificates, which are not subject to the same checks as the mandatory certificates, but which you can also enter in the system:

1.       Declaration from the health and safety authority

2.       Bank guarantee

Procedure

To maintain your sub-contractor’s certificates, in Customizing for Financial Accounting, choose Financial Accounting Global Settings ® Chain Liability ®Maintain Sub-Contractor’s Certificates.