AP Retainage Adjustment Cases

In this topic, you will read about the cases when you may need to adjust retainage amounts, correct released retainage, and revert incorrect retainage documents. The following sections describe each case, the actions that should be taken, and the resulting documents that will be generated in the system.

1. Retainage Amount Should be Increased

Suppose that a $1,000 AP bill (original bill) has been released. The retained amount is $100 and the bill amount is $900. The retainage has not been released, that is, no retainage document has been created. This bill should be corrected as follows: the bill amount should be decreased to $850, the retainage amount should be increased to $150, and the total amount is the same ($1,000).

Actions to Be Taken

To increase the retainage amount, you perform the following general instructions:

  1. On the Bills and Adjustments (AP301000) form, you reverse the original bill by clicking Reverse on the More menu. For details, see To Reverse a Bill.
  2. On the same form, you create a new bill specifying the correct retainage amount ($150). For details, see To Enter a Bill with Retainage (with Items' Quantities and Unit Costs) and To Enter a Bill with Retainage (with Line Totals).

Result

After you have performed the instructions, the system will generate the following documents:

  • A debit adjustment that reverses the original bill. This document has the following settings on the Bills and Adjustments form:
    • Apply Retainage: Selected
    • Detail Total: 1,000
    • Amount: 900
    • Balance: 900
    • Original Document (Financial tab): The reference number of the original bill
    • Applications tab: Empty
  • A bill with the increased retainage amount. This document has the following settings on the Bills and Adjustments form:
    • Apply Retainage: Selected
    • Amount: 850
    • Balance: 850
    • Original Retainage (Retainage tab): 150
    • Unpaid Retainage: (Retainage tab): 150

2. Retainage Amount Should be Decreased

Suppose that a $1,000 AP bill (original bill) has been released. The retained amount is $100 and the bill amount is $900. The retainage has not been released, that is, no retainage document has been created. This bill should be corrected as follows: the bill amount should be increased to $950, the retainage amount should be decreased to $50, and the total amount is the same ($1,000).

Actions to Be Taken

To decrease the retainage amount, you perform the following general instructions:

  1. On the Bills and Adjustments (AP301000) form, you reverse the original bill by clicking Reverse on the More menu. For details, see To Reverse a Bill.
  2. On the same form, you create a new bill specifying the correct retainage amount ($50). For details, see To Enter a Bill with Retainage (with Items' Quantities and Unit Costs) and To Enter a Bill with Retainage (with Line Totals).

Result

After you have performed the instructions, the system will generate the following documents:

  • A debit adjustment that reverses the original bill. This document has the following settings on the Bills and Adjustments form:
    • Apply Retainage: Selected
    • Detail Total: 1,000
    • Amount: 900
    • Balance: 900
    • Original Document (Financial tab): The reference number of the original bill
    • Applications tab: Empty
  • A bill with the decreased retainage amount. This document has the following settings on the Bills and Adjustments form:
    • Apply Retainage: Selected
    • Amount: 950
    • Balance: 950
    • Original Retainage (Retainage tab): 50
    • Unpaid Retainage: (Retainage tab): 50

3. Retainage Amount Should be Adjusted for an Unreleased Retainage Bill

Suppose that an original bill has been created correctly but you have released a greater or lower retainage amount. In other words, you released the retainage on the Release AP Retainage (AP510000) form and the system created a retainage document on the Bills and Adjustments (AP301000) form. This retainage document has an incorrect amount, but it has not yet been released.

Actions to Be Taken

To adjust the retainage amount, you perform the following general instructions:

  1. On the Bills and Adjustments form, you find the retainage document with the incorrect amount.
  2. You delete the document by clicking Delete on the form toolbar and clicking OK in the displayed dialog box.

Result

Because the retainage document has not been released yet, the Unreleased Retainage box on the Retainage tab of the Bills and Adjustments form remains unchanged for the original bill.

4. Retainage Amount Should be Increased for a Released Retainage Bill

Suppose that a $1,000 AP bill (original bill) has been released. The retained amount is $100 and the bill amount is $900. The retainage document has been released but its amount is $90.

Actions to Be Taken

To release the correct retainage amount, you perform the following general instructions (scenario 1):

  1. On the Bills and Adjustments (AP301000) form, you reverse the incorrect retainage document of $90 by clicking Reverse on the More menu. For details, see To Reverse a Bill.
  2. On the Release AP Retainage (AP510000) form, you release the correct retainage amount of $100. For details, see To Create a Retainage Document (Release Retainage).

Alternatively, you can perform the following steps (scenario 2):

  1. On the Release AP Retainage form, you find the original bill with the unreleased retainage of $10.
  2. You release this retainage by selecting the line for the document and clicking Process on the form toolbar. For details, see To Create a Retainage Document (Release Retainage).

Result

If you have performed scenario 1, the system will generate the following documents:

  • A debit adjustment of $90 that reverses the original retainage bill. This document has the following settings on the Bills and Adjustments form:
    • Retainage Document: Selected
    • Detail Total: 90
    • Amount: 90
    • Balance: 90
    • Original Document (Financial tab): The reference number of the original retainage bill
  • A retainage bill with the correct retainage amount of $100. This document has the following settings on the Bills and Adjustments form:
    • Retainage Document: Selected
    • Detail Total: 100
    • Amount: 100
    • Balance: 100
    • Original Document (Financial tab): The reference number of the original bill with retainage

If you have performed scenario 2, the system will generate the following documents:

  • A retainage bill with the incorrect retainage amount of $90. This document remains unchanged in the system. This document has the following settings on the Bills and Adjustments form:
    • Retainage Document: Selected
    • Detail Total: 90
    • Amount: 90
    • Balance: 90
    • Original Document (Financial tab): The reference number of the original bill with retainage
  • A retainage bill with the amount of $10. This document is generated in addition to the $90 retainage bill. This document has the following settings on the Bills and Adjustments form:
    • Retainage Document: Selected
    • Detail Total: 10
    • Amount: 10
    • Balance: 10
    • Original Document (Financial tab): The reference number of the original bill with retainage

5. Retainage Amount Should be Decreased for a Released Retainage Bill

Suppose that a $1,000 AP bill (original bill) has been released. The retained amount is $100 and the bill amount is $900. You needed to release $30 of the retainage, but you released $60 by mistake. The 60$ retainage bill has also been released.

Actions to Be Taken

To correct the released retainage amount, you perform the following general instructions:

  1. On the Bills and Adjustments (AP301000) form, you reverse the incorrect retainage document of $60 by clicking Reverse on the More menu. For details, see To Reverse a Bill.
  2. On the Release AP Retainage (AP510000) form, you release the correct retainage amount of $30. For details, see To Create a Retainage Document (Release Retainage).

Result

After you have performed the instructions, the system will generate the following documents:

  • A debit adjustment of $60 that reverses the original retainage bill. This document has the following settings on the Bills and Adjustments form:
    • Retainage Document: Selected
    • Detail Total: 60
    • Amount: 60
    • Balance: 60
    • Original Document (Financial tab): The reference number of the original retainage bill
  • A retainage bill with the correct retainage amount of $30. This document has the following settings on the Bills and Adjustments form:
    • Retainage Document: Selected
    • Detail Total: 30
    • Amount: 30
    • Balance: 30
    • Original Document (Financial tab): The reference number of the original bill with retainage

6. The Retainage is Released for the Wrong Bill but the Retainage Document Has Not Been Released

Suppose that a $1,200 AP bill (original bill) has been released. The retained amount is $100 and the bill amount is $1,100. You released the retained amount of $100, but the retainage document is still in the On Hold status. After you generated the retainage document, you realized that you released retainage for the wrong bill.

Actions to Be Taken

To correct the mistake and release retainage for the correct bill, you perform the following general instructions:

  1. On the Bills and Adjustments (AP301000) form, you find the incorrect retainage document with the On Hold status.
  2. You delete the document by clicking Delete on the form toolbar and clicking OK in the displayed dialog box.
  3. On the Release AP Retainage (AP510000) form, you release the retainage for the correct bill. For details, see To Create a Retainage Document (Release Retainage).

Result

Because the retainage document has not been released yet, the Unreleased Retainage box on the Retainage tab of the Bills and Adjustments form remains unchanged for the original bill.

7. The Retainage is Released for the Wrong Bill and the Retainage Document Has Been Released

Suppose that a $1,200 AP bill (original bill) has been released. The retained amount is $100 and the bill amount is $1,100. You released the retained amount of $100 and released the generated $100 retainage document. After you released the retainage document, you realized that you released retainage for the wrong bill.

Actions to Be Taken

To correct the mistake and release retainage for the correct bill, you perform the following general instructions:

  1. On the Bills and Adjustments (AP301000) form, you reverse the incorrect retainage document of $100 by clicking Reverse on the More menu. For details, see To Reverse a Bill.
  2. On the Release AP Retainage (AP510000) form, you release retainage for the correct bill. For details, see To Create a Retainage Document (Release Retainage).

Result

After you have performed the instructions, the system will generate the following documents:

  • A debit adjustment of $100 that reverses the wrong retainage bill. This document has the following settings on the Bills and Adjustments form:
    • Retainage Document: Selected
    • Detail Total: 100
    • Amount: 100
    • Balance: 100
    • Original Document (Financial tab): The reference number of the original retainage bill
  • A $100 retainage bill for the correct original bill. This document has the following settings on the Bills and Adjustments form:
    • Retainage Document: Selected
    • Detail Total: 100
    • Amount: 100
    • Balance: 100
    • Original Document (Financial tab): The reference number of the correct original bill with retainage