R12: AP: When Entering Gross of Retainage Invoice, the Invoice Header Amount is Required to be the Same as the Net of the Retainage Invoice (Doc ID 2001995.1)

Last updated on APRIL 04, 2025

Applies to:

Goal

For Net of Retainage invoices, a supplier would only invoice for the Item amount less retainage plus tax.  For Gross of Retainage Invoices, the Invoice Workbench expects an invoice to be created for the full amount with tax calculated on the portion that is not retained.

For example, for a complex PO for $2,000 with 25% retention and 10% tax:

Invoice Amount = $2,150 (a "gross" invoice would not be for $2,150)
Items = $2,000
Retainage = $500
Tax = $150

Why does the system require gross invoices to be entered this way?


 

Solution

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