retainage invoice
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Retainage Invoice In Accounts payablesTRANSCRIPT
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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
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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
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Retainage Invoice with Complex PO & Retainage Release
Ahmed Mahmoud Zayed
Oracle Apps. Financial Consultant Page 2
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.
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Retainage Invoice with Complex PO & Retainage Release
Ahmed Mahmoud Zayed
Oracle Apps. Financial Consultant Page 3
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.
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Retainage Invoice with Complex PO & Retainage Release
Ahmed Mahmoud Zayed
Oracle Apps. Financial Consultant Page 4
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.
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Retainage Invoice with Complex PO & Retainage Release
Ahmed Mahmoud Zayed
Oracle Apps. Financial Consultant Page 5
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
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Retainage Invoice with Complex PO & Retainage Release
Ahmed Mahmoud Zayed
Oracle Apps. Financial Consultant Page 6
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).
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Retainage Invoice with Complex PO & Retainage Release
Ahmed Mahmoud Zayed
Oracle Apps. Financial Consultant Page 7
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.
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Retainage Invoice with Complex PO & Retainage Release
Ahmed Mahmoud Zayed
Oracle Apps. Financial Consultant Page 8
Click Save.
Click Pay Item tab then Click on the Pencil to update.
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Retainage Invoice with Complex PO & Retainage Release
Ahmed Mahmoud Zayed
Oracle Apps. Financial Consultant Page 9
Enter PO Charge Account, the Click Apply.
Click on Distribution tab and enter PO Charge Acct, then Click on the Pencil to update.
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Retainage Invoice with Complex PO & Retainage Release
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Oracle Apps. Financial Consultant Page 10
Enter Encumbered Date and any other required data the click Apply.
Click Submit.
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Retainage Invoice with Complex PO & Retainage Release
Ahmed Mahmoud Zayed
Oracle Apps. Financial Consultant Page 11
Search for your PO by selecting My Open Orders and Click Go.
Ensure that your PO Status is "Approved".
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Retainage Invoice with Complex PO & Retainage Release
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Oracle Apps. Financial Consultant Page 12
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.
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Retainage Invoice with Complex PO & Retainage Release
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Oracle Apps. Financial Consultant Page 13
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:
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.
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Retainage Invoice with Complex PO & Retainage Release
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Oracle Apps. Financial Consultant Page 14
Enter Purchase Order Number, then click Find.
Click on Match check box and enter Match Amount then click Match.
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Retainage Invoice with Complex PO & Retainage Release
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Oracle Apps. Financial Consultant Page 15
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:
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Retainage Invoice with Complex PO & Retainage Release
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Oracle Apps. Financial Consultant Page 16
6- 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.
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Retainage Invoice with Complex PO & Retainage Release
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Oracle Apps. Financial Consultant Page 17
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".
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Retainage Invoice with Complex PO & Retainage Release
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Oracle Apps. Financial Consultant Page 18
In Release Retainage form and select the release line the enter release amount then, Click
Release.
Notice that line Type is Retainage Release.
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Retainage Invoice with Complex PO & Retainage Release
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Oracle Apps. Financial Consultant Page 19
Validate the invoice and Create Accounting, so you can see the accounting as following:
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Retainage Invoice with Complex PO & Retainage Release
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Oracle Apps. Financial Consultant Page 20
6. Sources
Oracle Payables User Guide Release 12
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