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
megazayed@gmail.com
Retainage Invoice with Complex PO & Retainage Release
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

Page 1
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

Page 2
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

Page 3
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

Page 4
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

Page 5
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

Page 6
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

Page 7
Click Save.
Click Pay Item tab then Click on the Pencil to update.
Ahmed Mahmoud Zayed

Page 8
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

Page 9
Enter Encumbered Date and any other required data the click Apply.
Click Submit.
Ahmed Mahmoud Zayed

Page 10
Search for your PO by selecting My Open Orders and Click Go.
Ensure that your PO Status is "Approved".
Ahmed Mahmoud Zayed

Page 11
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

Page 12
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

Page 13
Enter Purchase Order Number, then click Find.
Click on Match check box and enter Match Amount then click Match.
Ahmed Mahmoud Zayed

Page 14
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

Page 15
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

Page 16
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

Page 17
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

Page 18
Validate the invoice and Create Accounting, so you can see the accounting as
following:
Ahmed Mahmoud Zayed

Page 19
6. Sources
Oracle Payables User Guide Release 12
"
"
" "
Ahmed Mahmoud Zayed

Page 20

Retainage Invoice

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Retainage Invoice

Uploaded by

Copyright:

Available Formats

Oracle Applications White Paper

Oracle EBS R12 Payables, Retainage Invoice with Complex

Ahmed Mahmoud Zayed