R12: AP: How to Keep Retainage Release Invoices at"Needs Revalidation" Until All Related Invoices are Validated and Approved

(Doc ID 1986765.1)

Last updated on SEPTEMBER 18, 2017

Applies to:

Oracle Payables - Version 12.1.3 and later
Information in this document applies to any platform.

Goal

Is there a way to keep Retainage Release Invoices at a status of "Needs Revalidation" until all related Invoices that record the Retainage withheld are Validated and Approved?

DESCRIPTION:
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Customer would like an option in Payables to disallow validation and accounting of Retainage Release invoices (should be kept in "Need Revalidation" state) prior to the validation and accounting of all Invoices which initially withhold those retainage amounts.

EXAMPLE:
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1. Standard invoice XXXXX is an invoice for $441,747.00, matched to Line 1 of PO YYYYY. Retainage of $44,174.70 was withheld from the invoice. This invoice is WF Approved, Validated, Accounted, and Paid in the amount of $397,572.30 (Gross  441,747.00- Retainage 44,174.70=Net progress payment 397,572.30) as expected.

2. Matched Standard Invoice ProgressPaymt2 to Line 1 of the same Complex PO and Saved. Invoice is not validated and has not been Approved (Approval is required based on $amt of invoice). Retainage of $250.00 was withheld as expected.

3. Created a Retainage Release type invoice. Invoice # RetainRelease, matched to Line 1 of the same Complex PO, Inv Amt = 44,424.70 (Sum of retainage withheld from the 2 standard invs), Release Amt net of tax = 44,424.70. The
available retainage amount on Line 1 is 44,424.70; the sum of retainage withheld from both the Validated/Approved invoice and the Never Validated/UnApproved invoice.

4. Payables allows to Validate and Approve the #RetainageRelease.

5. Generated a quick pay check for the #RetainageRelease invoice. Payables allowed the payment to be generated.

6. Customer expects Payables to keep Retainage Release Invoices at a status of Needs Revalidation until all related Invoices that record the Retainage withheld are Validated and Approved. There should be an option in AP  to disallow validation and accounting of Retainage Release invoices (should be kept in "Need Revalidation" state) prior to the validation and accounting of all Invoices which initially withhold those retainage amounts.

BUSINESS NEED:
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Distributions/lines of the original invoice that creates retainage balances cannot be modified once the Retainage Release invoice is entered without first cancelling the Retainage Invoice. Given that once the Payment of the Retainage Invoice is issued and no longer recoverable, it is no longer possible to cancel the Retainage Invoice and thus there is no way to alter the original Invoice.

Solution

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