Question

Indemnity functionality

  • 24 May 2022
  • 2 replies
  • 79 views

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Dear Community, 

Indemnity is a new functionality in IFS. In the case of using it in Sales Contracts:

Would it be possible to :

1- Explain the usage of “Indemnity” in IFS and if there is any impact in the system (account postings,calculation,...) or it’s for only a repository? 

2- clarify functionally the meaning of “Requirement Basis” and “Requires value” ? What are their utility ? and why we are using these fields at the level of the request for indemnity ?

 

Thank you in advance for your help.

Regards,

Hajar


2 replies

Userlevel 3
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We’ve been looking for more information too.  Beyond the video by Bob Corrigan there does not seem to be much information available about Indemnity Management.

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@HELKANOUNI Hi, 

  1. The indemnities do not have an impact on the postings or calculations. It is a system that can be used to report indemnity requirements such as Bank Guarantees, Public Liability Insurances, Contractor Certificates for your Sub Contracts and Sales Contracts, and record the details of such indemnities when received (Indemnity Type, Value, Issuer, Expiry Date etc., which is a repository), and use that information throughout the contract life cycle to make sure they are in place.

In Indemnity Management solution, there is a user configurable validation method which gives users the capability to configure the system, to when (at which business operation - e.g., Awarding a Contract, Certifying an Application) and what type of validation (firing a warning message or error message) they need. 

 

  1. The “Requirement Basis” field helps you determining the value of the required indemnity. For an example, if you need a Bank Guarantee from the Sub Contractor for the 50% of the contract value, you could set the “Requirement Basis” as “Percentage” and enter 50%, and then the system will calculate the required minimum value for you. Similarly, if you need a Public Liability Insurance worth £20Mn regardless of the contract value, you could set the “Requirement Basis” as “Value” and enter the “Required Value”. The reason for using these at the request level is, we think users need to determine the value of each indemnity at the point of request. 

I hope this answers your questions. 

 

Thanks,

Sampath

 

 

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