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Question from Nikki Klein on Nov 6 at 4:49 PM Hi all
My client needs a payment term that will combine both Installment and Retainage. The vendor is paid in three installments - 25% for the first payment, 50% for the second payment and finally 25% for the last payment. I have configured this in OBB8 and OBB9.
However, the client also retains 10% at each payment, posting to a Holdback / Retention GL account, and the final retained amount is paid out to the vendor upon satisfactory completion of the job. For example, if the first installment payment (25%) is for $1,250, then $125 (10%) is retained and the vendor is paid $1,125. Similar for the 50% ($250 is retained) and for the remaining 25% again. In this example, the retention account holds $500 by the end of the whole process, which is then paid out via a regular AP invoice.
I can't figure out how this retention bit is handled. I can see config for the Special GL Indicator under LIV > Incoming Invoice > Retention > Define Control Parameters for Retention, which presumably determines the GL account that will collect the retained amounts, but I don't see where / how I specify the 10%, or how the payment terms even knows that something must be retained (on top of doing the installment bits).
Has anyone done this?
Nikki
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