COMPLEX IN. - NO FUNCTIONALITY TO REDUCE THE VALUE OF RETAINAGE, OUTFIT

Hello

Purchase R12 provides functionality of holdback. Holdback number corresponds to the amount of payment to ensure that the contractor finishes the job as agreed. The buying organization releases these funds only after having verified that the contractor has fulfilled all contractual obligations. Retainage is also called 'retention' or ' holds contractual.

The only way to reduce the amount of the holdback retained is to create a release of holdback Bill which then pays the provider.

No feature is provided to reduce the value of the holdback downwards to account for the use of companies purchase funds to penalize the contractor if they failed to meet contractual obligations all.

This is an incomplete solution. the holdback is intended to finance the purchase company to reward failure of the selling company. But how do we record use of these funds?

If there is no mechanism to reduce the value of the holdback that is held so the value is always available to pay the contractor

Thank you
Umesh

Published by: Umesh Chandra Moharana, June 25, 2009 16:05

Published by: Umesh Chandra Moharana, July 2, 2009 09:40

Umesh

If you want to pay partially (on the amount withheld), create AP invoice manually (which is the way to get rid of the amount deducted) for this amount and pass entered GL GL for others.

If you decide not to pay at all, you can manually pass entered GL or manually enter them Bill AP and cancel the Bill and pass entries manually to get rid of the value of the selected account.

Also something can be done in ALS to create these entires automatically (with custom AAD)

Thank you
Claire

Tags: Oracle Applications

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