retainage invoice

Oracle Applications White Paper Oracle EBS R12 Payables, Retainage Invoice with Complex

PO & Retainage Release "Retention"

February, 2015

Ahmed Mahmoud Zayed Oracle Apps. Financial Consultant

[email protected]

Retainage Invoice with Complex PO & Retainage Release

Ahmed Mahmoud Zayed

Oracle Apps. Financial Consultant Page 1

Contents

1. About the Author ........................................................................................................................... 2

2. Introduction ................................................................................................................................... 2

3. Purpose .......................................................................................................................................... 2

4. Who Should Read This ................................................................................................................. 2

5. Retainage Invoice with Complex PO and Retainage Release ...................................................... 3

a. Steps of Solution ....................................................................................................................... 3

b. Application of Solution ............................................................................................................. 3

6. Sources......................................................................................................................................... 20


Ahmed Mahmoud Zayed


1. About the Author

Ahmed Mahmoud Zayed was born in 13th September 1986, and graduated from Faculty of

Commerce "Accounting Majority" Suez Canal University in July, 2007.

Ahmed works as Oracle Apps. Financial Consultant, also he is Oracle E-Business Suite R12

Financials Certified Expert Consultant, Payables (OCE).

2. Introduction

Retainage is the act of withholding a portion of a payment until a substantial portion or all of

the work is completed. It is a common practice in project-based construction and public

sector service procurement contracts and generally used in projects with a high value or with

a long-term contracts.

A portion of a progress payment is generally withheld by the buying organization until all

work in the contract is complete and accepted.

3. Purpose

This paper will help you to understand the steps to create invoice with retainage and how to

release retainage amount by creating retainage release invoice in Oracle Payable R12.

The purpose of this paper is not to teach you how to create a Complex PO, although I have

mentioned its basic steps in order to be able to implement the case.

4. Who Should Read This

This paper is aimed to users, implementers and functional consultants of Oracle EBS R12.


Ahmed Mahmoud Zayed


5. Retainage Invoice with Complex PO and Retainage

Release

a. Steps of Solution

1- Enable Services Procurement.

2- Create a document style in Oracle Purchasing.

3- Create a service procurement purchase order (Complex PO) in Oracle Purchasing.

4- Create a retainage account in Financials Options setup.

5- Create an Invoice matched with purchase order (Complex PO) created earlier.

6- Create a Retainage Release Invoice.

b. Application of Solution

1- Enable Services Procurement:

Enable Services Procurement module in order to create document style that has retainage

options.

Steps:

From System Administrator responsibility, follow this path:

Profile > Systems

Search for Profile: "PO: Enable Services Procurement", then Click Find.


Ahmed Mahmoud Zayed


In Site field select "Yes", then Save.

2- Create a document style in Oracle Purchasing:

Create a document style in Oracle Purchasing and enable retainage options in order to

create Complex PO.

Steps:

From Purchasing Super User responsibility, follow this path:

Setups > Purchasing > Document Styles

Click Create.


Ahmed Mahmoud Zayed


Enter Name and Enable required Types of purchase orders and select Purchase

Bases and select Complex Payments options as shown then click Apply.

3- Create a service procurement purchase order (Complex PO) in Oracle Purchasing:

Create a service procurement purchase order (Complex PO) using the document style

defined earlier and enter retainage amount.

Steps:

From Purchasing responsibility, follow this path:

Buyer Work Center > Orders


Ahmed Mahmoud Zayed


Select document style "Standard PO - Complex" created earlier, then click Go.

Enter Header (Tab) details: Operating Unit, Supplier, Buyer and Default

Ship-To Location, then Click Lines (Tab).


Ahmed Mahmoud Zayed


Enter Line details: Type, Description, Category and Price Amount, then click on the Pencil to update.

Enter Retainage Rate (%) "For example 10", PO Charge Account, Invoice

Match Option, Then click Apply.


Ahmed Mahmoud Zayed


Click Save.

Click Pay Item tab then Click on the Pencil to update.


Ahmed Mahmoud Zayed


Enter PO Charge Account, the Click Apply.

Click on Distribution tab and enter PO Charge Acct, then Click on the Pencil to update.


Ahmed Mahmoud Zayed


Enter Encumbered Date and any other required data the click Apply.

Click Submit.


Ahmed Mahmoud Zayed


Search for your PO by selecting My Open Orders and Click Go.

Ensure that your PO Status is "Approved".


Ahmed Mahmoud Zayed


4- Create a retainage account in Financials Options setup:

Create a retainage account in Financial Options in Oracle Payables module.

Steps:

From Payables responsibility, follow this path:

Setups > Options > Financial Options

Enter Retainage account combination, then Save.


Ahmed Mahmoud Zayed


5- Create an Invoice matched with purchase order (Complex PO) created earlier:

Create an Invoice (Standard) and match it with the Complex PO created earlier.

Steps:


Invoices > Entry > Invoices

Enter Invoice Header details: Type "Standard", PO Number, Invoice Date,

Invoice Number and Invoice Amount, then click Match.


Ahmed Mahmoud Zayed


Enter Purchase Order Number, then click Find.

Click on Match check box and enter Match Amount then click Match.


Ahmed Mahmoud Zayed


Notice Retainage field in General tab has been populated with amount (- 1000) = (% 10 * 10000).

Validate the invoice and Create Accounting, so you can see the accounting as following:


Ahmed Mahmoud Zayed


6- Create a Retainage Release Invoice:

Create an Invoice (Retainage Release) to release the retainage amount.

Steps:


Invoices > Entry > Invoices

Enter Invoice Header details: Type "Retainage Release", PO Number, Invoice

Date, Invoice Number and Invoice Amount.


Ahmed Mahmoud Zayed


Move to the last field in Invoice Header and enter Release Amount Net of Tax, then Click Match.

Enter Purchase Order Number, then click Find.

Notice that form title is "Find Retained Invoice Lines".


Ahmed Mahmoud Zayed


In Release Retainage form and select the release line the enter release amount then, Click

Release.

Notice that line Type is Retainage Release.


Ahmed Mahmoud Zayed


Validate the invoice and Create Accounting, so you can see the accounting as following:


Ahmed Mahmoud Zayed


6. Sources

Oracle Payables User Guide Release 12

" "

" "

retainage invoice

Documents

retainage invoice

retainage release invoice

introduction retainage

retainage account

oracle purchasing

oracle payable r12

financial consultant

author ahmed mahmoud