Retainage Invoice with Complex PO and Retainage Release

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.

In Site field select "Yes", then Save.

2) Enter a Retainage account in GL:

Select GL responsibility
Setup Financials Flex fields Key Values
Enter Retainage Account
Qualifiers: Yes, Yes, Ownership, No, No
Save

3) 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.

4) Give Retainage Rate at supplier site level:

Select Payables responsibility
Nav : Suppliers----->Suppliers
Query Supplier
Click on Invoice Management Tab
Click on Terms Tab
Give Retainage Rate(10%)
Click on Save

5) 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.

Enter Name and Enable required Types of purchase orders and select Purchase
Bases and select Complex Payments options as shown then click Apply.

6) 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
Buyer Work Center > Orders
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).
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.
Click Save.
Click Pay Item tab then Click on the Pencil to update.
Enter PO Charge Account, the Click Apply.
Click on Distribution tab and enter PO Charge Acct, then Click on the Pencil to update.
Enter Encumbered Date and any other required data the click Apply
Click Submit
Search for your PO by selecting My Open Orders and Click Go.
Ensure that your PO Status is "Approved".

7) 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:
From Payables responsibility, follow this path:
Invoices > Entry > Invoices
Enter Invoice Header details: Type "Standard", PO Number, Invoice Date,
Invoice Number and Invoice Amount, then click Match.
Enter Purchase Order Number, then click Find.
Click on Match check box and enter Match Amount then click Match.
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

8) Create a Retainage Release Invoice:

Create an Invoice (Retainage Release) to release the retainage amount.
Steps:
From Payables responsibility, follow this path:
Invoices > Entry > Invoices
Enter Invoice Header details: Type "Retainage Release", PO Number, Invoice Date,
Invoice Number and Invoice Amount
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
In Release Retainage form and select the release line the enter release amount then, Click
Release.
Notice that line Type is Retainage Release
Validate the invoice and Create Accounting, so you can see the accounting

9) Payment to supplier at the contract end :

Select Payables Responsibility
Nav : PaymentsEntryPayments
Enter the payment details
select unpaid invoices for payment, click on Enter/Adjust invoices
Choose invoice number to make payment
Save and close this window
Go to Actions
Create accounting

Select Final Say OK

Go to Tools View Accounting