AR Invoices with Retainage: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for processing an AR invoice with retainage, and to understand (and change, if needed) the settings that affect the processing workflow.

Implementation Checklist

Before you begin processing the AR invoice with retainage, you should make sure the needed features have been enabled, settings have been specified, and entities have been created, as summarized in the following checklists.

Settings That Affect the Workflow

The following settings and entities should be specified and defined, respectively:

• The following general ledger settings should be specified on the Posting Settings section of the General Ledger Preferences (GL102000) form:
  • Make sure that the Automatically Post on Release check box is selected. This setting causes GL batches to be immediately posted after they are released.
  • Clear the Generate Consolidated Batches check box to cause every AR transaction you enter to be posted as an individual batch to the general ledger. (When this check box is selected, the system consolidates into a single batch all transactions in the same currency posted to the same period for all documents being released.)
• The following accounts receivable settings should be specified on the General tab of the Accounts Receivable Preferences (AR101000) form:
  • Select the Hold Documents on Entry check box in the Data Entry Settings section. This setting gives the created AR invoices the On Hold status.
  • Clear the Hold Documents on Entry check box to direct the system to automatically remove retainage documents from hold as soon as they are created. With this check box cleared, retainage documents will get the Pending Approval status if approvals are set up in your system for the needed document type, or the Balanced status if approvals are not used.
  • Clear the Require Payment Reference on Entry check box in the Data Entry Settings section. This setting means that you do not have to enter a payment reference number in the Payment Ref. box when creating an AR invoice on the Invoices and Memos (AR301000) form.
  • Make sure that the Automatically Post on Release check box is selected in the Posting Settings section. This setting causes AR invoices to be automatically posted to the general ledger once they are released.
  • If you want to retain the taxes calculated on the retained amount, you select the Retain Taxes check box in the Retainage Settings section. If you want the full tax amount to be paid on the invoice with retainage, you leave this box cleared. For details on configuration of taxes with retainage, see AR Invoices with Retainage: Configuration of the Default Retainage Settings.
  • If you want the system to automatically release retainage documents that you create on the Release AR Retainage (AR510000) form, select the Automatically Release Retainage Documents check box.

With these settings specified and entities defined, users in your company can record and process documents in MYOB Advanced quickly and accurately, with a minimum of manual actions.