R12 – Step by Step – Retainage in Payables(AP)
Retainage refers to a portion of the payment that is withheld until the completion of a project. In that case the client doesn’t pay the contractor/party the retainage until all work on the project is complete. Retainage is negotiated upfront and is stated as a percentage or amount of the overall cost of the project. There is no limit for Retainage.
Steps Involved in Retainage
1. Create a document style in Oracle Purchasing
2. Create Retainage Account through Payables
Let’s discuss the steps below …
1. Create a document style in Oracle Purchasing.
Responsibility: Purchasing
Navigation: Setup – Purchasing – Document Styles – Create
Responsibility: Purchasing
Navigation: Setup – Purchasing – Document Styles – Create
Click – Create
Click Apply
2. Create a retainage account in Financials Options setup.Responsibility: Payables
Navigation: Setup – Options – Financials Options
Enter the retainage account to use during accounting.
Navigation: Setup – Options – Financials Options
Enter the retainage account to use during accounting.
Enter the Retainage Account –
- Create a procurement purchase order in Oracle Purchasing.
Responsibility: Purchasing
Navigation: / Buyer Work Center / Orders
Select the complex PO document style in the Create drop down box or select ‘More’ to find the complex PO document style if it is not listed in the LOV. - Create –Choose Complex PO
Click Go
Enter the Details here
Enter the Header info and click on Lines.
Enter the line information
Click on Update icon to enter the Financing Options.
Enter the Distributions details
Click Save
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