Retainage Release Invoices in Oracle AP - ErpSchools

Retainage Release Invoices in Oracle AP:

Retainage means retaining certain amount of money with us without paying the supplier

in full. The retained amount is released or paid to the supplier when all the terms of the

agreement have been met or all the work is completed.

Pre-requisites:

1. Retainage Account setup:

Navigation: Payables Responsibility > Setup > Options >Financials Options

Under Accounting tab, make sure you define the Retainage Account.

2. Define the retainage rate for the supplier.

Navigation: Payables Responsibility > Suppliers > Entry

Query for the Supplier and go to Invoice Management Tab

Apps Questions

Ask a Question

November 2014

M T W T F S S

Oct

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

Rs. 1,199 Rs. 1,199 Rs. 2,199

Rs. 1,095 Rs. 1,499 Rs. 1,399

erpSchools

10,244 people like erpSchools.

Facebook social plugin

LikeLike

Can we create an Invoice without

a PO in payables?

asked by

Prudhvi

What table holds the link

between OM and AR?

asked by

Prudhvi

What does TCA stand for? What

is it used for ?

asked by

Prudhvi

Specify the steps that need to be

done starting from creating an

invoice until transferring it to GL in

AP.

asked by

Prudhvi

Retainage Release Invoices in Oracle AP - erpSchools http://www.erpschools.com/financials/retainage-release-invoices-oracle-ap

1 of 9 16-11-2014 18:44

Under Terms tab, enter the retainage percentage for the desired site and save.

Steps to create and release retainage:

1. Create Complex PO:

Navigation: Purchasing Responsibility > Buyer Work Center > Orders

Choose Complex Services (Actuals) PO from the LOV next to Create field and click on

go.

Enter the below details:

Under Header Section: Enter Supplier and Supplier Site

Under Lines Tab: Enter Item, Qty, Price and need by date.

Delete the additional blank lines and save.

Name the standard Key Flexfields

in AR.

asked by

Prudhvi

Can you make a partial payment

for an invoice in AP?

asked by

Haritha

What are Payment Terms?

asked by

Prudhvi

What are Aging Periods used for

in AP?

asked by

Prudhvi

What is the process/steps for

Vendor Conversion?

asked by

Prudhvi

What is the name of the program

used to import expense reports into

AP? Name the tables that store the

expense reports related date.

asked by

Haritha


2 of 9 16-11-2014 18:44

Next click on Update icon. If you have not defined the retainage percentage at Supplier

site level, you can set it now. Based on the percentage defined here, the respective

amount will be retained. You can also specify Maximun retainage amount here which

means retained amount cannot exceed the amount specified here.

Under Pay Items tab: Enter the Value (%).

Under Distributions Tab: Enter Deliver to location.

Click on Submit.

Complex PO 6621 has been successfully created.

In the Views dashboard, search for My Open Orders and make sure your order is

Approved.

2. Create Standard Invoice:


3 of 9 16-11-2014 18:44

When you receive an invoice from the supplier, create one in your system.

Navigation: Payables responsibility > Invoices > Entry > Invoices

Enter the header details Operating Unit, Trading Partner, Supplier Site, Invoice Date,

Invoice amount (given the amount as 10000).

Click on Match button.

Enter the Purchase Order num as 6621 and click on Find.

Check the Match check box and click on Match button.

You will see that 20% of the invoice amount has been retained which means we will only

pay the 80% of the invoiced amount.

Now click on the Calculate Tax button. Adjust the invoice amount accordingly on the

header and validate the invoice by going to Actions > Validate.


4 of 9 16-11-2014 18:44

Look at the Line entries

Distribution entries:

The retainage account that we have defined in the pre-requisites section will be used

here.

With this our standard invoice RetInv has been created and validated.

Create Accounting by going to Actions > Create Accounting. Choose Final Post.


5 of 9 16-11-2014 18:44

3. Pay the standard invoice.

Go to Actions > Pay in Full

Enter the payment Process profile and save. Payment of $8232 has been made after

taking out the discounts. Remember even thought the total invoice amount is $10552,

only 80% of it has been paid. 20% has been retained.

4.Create Retainage Release Invoice

Now when the entire work has been completed, we release the retained amount by

creating a retainage release invoice.

Navigation: Payables Responsibility > Invoices > Entry > Invoices

Choose Invoice Type as Retainage Release.

Enter Supplier details, Invoice date and number.

In the Invoice Amount field, enter the amount that you will release + taxes.

Enter the retained amount without taxes in the field Release Amount Net of Tax

Save the work.


6 of 9 16-11-2014 18:44

Now click on Match button and enter the PO num as 6621 and click on Find button.

Select the check box next to Retained line and click on Release button.

Now Calculate Tax. Adjust the Invoice amount to include the tax and validate it.

Kick off the Create Accounting process by going to Actions > Create Accounting > Final

Post.


7 of 9 16-11-2014 18:44

5. Pay the retained amount.

Go to Actions > Pay in Full.

Enter the payment Process profile and save. Payment of the retained amount + taxes

has been made after taking out the discounts.

With this we have successfully retained certain amount and once the work is complete,

we have released the retained amount to the supplier.


8 of 9 16-11-2014 18:44

ADF AP API apps ar BI concurrent concurrent program conversion DFF download email Flexfield forms GL iexpenses interface internal

requisition internal sales order inventory Invoices JAva KFF moac multi org OAF om Oracle Oracle Apps order to cash payables personalization

process Publisher R12 REceivables Schedule script tca trace UTL_FILE UTL_MAIL workflow xml XML Publisher

Copyright erpSchools & Prudhvi Avuthu

Copying of content without written permission is not allowed.


9 of 9 16-11-2014 18:44

Retainage Release Invoices in Oracle AP - ErpSchools

Documents

Transcript of Retainage Release Invoices in Oracle AP - ErpSchools