23 Define G/L Offset and Retainage Rules

This chapter contains the topic:

Section 23.1, "Defining G/L Offset and Retainage Rules."

23.1 Defining G/L Offset and Retainage Rules

Navigation

From Work Order/Service Billing Processing (G48), enter 29

From Work Order/Service Billing Setup (G4841), choose Table Information

From Table Information (G4843), choose G/L Offset and Retainage Table (P48128)

You can define G/L offset and retainage rules to designate the following information:

Payment terms
G/L offset
Retainage offset
Retainage percent

G/L offsets indicate the accounts in which the system creates offsetting entries during the creation of A/R and G/L journal entries.

Retainage is a percentage of the invoice pay item that your company is paid after the work is complete. When you create A/R and G/L entries, the system creates a separate journal entry for the retainage amount.

When you generate invoices, the system uses the summarized data items you specify for the sequence and summarization key to locate G/L offset, retainage, and payment terms information in the G/L Offset and Retainage Information table (F48128). Summarized data items are those data items that you use to summarize invoices at the pay item or invoice level. If you do not use the G/L Offset & Retainage Table to set up the information or if the data items in the sequence and summarization key do not match the table key values in the G/L Offset and Retainage Information table, then the system uses the G/L offset and the payment terms in the customer master information.

You set up the G/L Offset and Retainage Table using multiple key types and table keys. The system uses these key values to associate offset, retainage, and payment terms to billing detail transactions with the same values.

The G/L Offset & Retainage Table applies only to the Service Billing system.

23.1.1 Before You Begin

Define the payment terms and AAIs for the G/L offset and retainage

To define G/L offset and retainage rules

On G/L Offset & Retainage Table

Figure 23-1 G/L Offset & Retainage Table screen

Description of "Figure 23-1 G/L Offset & Retainage Table screen"

Complete the following fields to identify the key values:
- Key Type
- Table Key
Verify that you complete the fields in the lower portion of the form when you define new G/L offset and retainage rules. You can use the fields in the upper portion of the form only to locate rules that are already defined for the system.
Complete the following field to specify payment terms:
- Payment Terms
Complete the following field to specify the G/L offset:
- G/L Offset
Complete the following fields to specify retainage information:
- Retainage Percent
- Retainage Offset

Field	Explanation
Pmt Trm (TRAR)	Code that indicates the default terms of payment for a customer. Payment terms can determine due dates and discounts. This is used as a default value when invoices are created. Define payment terms in the Payment Terms Revisions program (P0014). Use a blank code for the most frequently used payment terms.
G/L Ofst (GLC)	The table of Automatic Accounting Instruction (AAI) accounts on which you predefine classes of automatic offset accounts for the Accounts Receivable information. The RCxxxx, where xxxx is the G/L offset, AAI must be defined in the Automatic Accounting Instruction (F0012) file before you add the offset value to the G/L Offset and Retainage Table.
Retn Percnt (PRET)	The retainage rate for the invoice pay item. The rate is a percentage that is expressed as a whole number. For example, you enter a retainage rate of 10.5 percent as 10.5. Do not enter a retainage percentage greater than 99.99 or less than zero.
Retn Ofst (RGLC)	A code that designates the offset accounts for retainage, such as RETN or 1220. You set up the code as an automatic accounting instruction. Note: Do not use code 9999. This is reserved for the post program and indicates that offsets should not be created.

23.1.2 What You Should Know About

Topic	Description
Assigning G/L offset and retainage information	When you generate invoices automatically, the system assigns values to the following fields for each transaction: Payment Terms G/L Offset Retainage Percentage Retainage Offset The system determines the correct values for these fields based on the sequence and summarization keys that you define for the invoice batch and the information that you define in the G/L offset and Retainage rules. For example, if your Invoice Level Summarization field is by subledger (work order), then you might define rules on the G/L Offset and Retainage Table form with the valid key types of subledger (work order) or work order class to locate the correct retainage rule. If your Invoice Level Summarization includes a job, then you can define G/L Offset and Retainage rules with the valid key types of job or job class.
Customer number	The system always generates invoices by customer. If your sequence and summarization key does not include customer number as a summarized data item, the system still uses the G/L offset and retainage rules you set up using a key type of customer and a table key of a specific customer number.
Creating invoices manually	You do not use sequence and summarization keys to create invoices manually. If you create invoices manually, the system uses only the G/L offset and retainage information you set up with a key type of customer and a table key of a specific customer number.

Topic

Description

Assigning G/L offset and retainage information

When you generate invoices automatically, the system assigns values to the following fields for each transaction:

Payment Terms
G/L Offset
Retainage Percentage
Retainage Offset

The system determines the correct values for these fields based on the sequence and summarization keys that you define for the invoice batch and the information that you define in the G/L offset and Retainage rules.

For example, if your Invoice Level Summarization field is by subledger (work order), then you might define rules on the G/L Offset and Retainage Table form with the valid key types of subledger (work order) or work order class to locate the correct retainage rule. If your Invoice Level Summarization includes a job, then you can define G/L Offset and Retainage rules with the valid key types of job or job class.

Customer number

The system always generates invoices by customer. If your sequence and summarization key does not include customer number as a summarized data item, the system still uses the G/L offset and retainage rules you set up using a key type of customer and a table key of a specific customer number.

Creating invoices manually

You do not use sequence and summarization keys to create invoices manually. If you create invoices manually, the system uses only the G/L offset and retainage information you set up with a key type of customer and a table key of a specific customer number.