Example Setup
In this example, three retainage rules are set at change order levels 000 and 001 and at the billing line level. The calculation is based on 100 percent completion of the contract. The control flag is set to blank to create retainage in A/R with no deferred taxes.
Draw and rated draw billing lines are excluded from the calculations.
These retainage rules are set up in the Retainage Rules Table program (P5204):
Retainage Rule |
Description |
|---|---|
A |
10 percent retainage until 100 percent complete. |
B |
15 percent retainage until 100 percent complete. |
C |
5 percent retainage until 100 percent complete. |
This contract is set up in the Contract Master Revisions program (P5201):
Contract Part |
Retainage Rule |
Offset |
Control Flag |
Tax Explanation |
Tax Rate/Area |
|---|---|---|---|---|---|
Contract |
A |
RETN |
S |
D1 = 3.5 percent |
|
Change Order 000, Billing Line 001 |
B |
RETN |
S |
D1 = 3.5 percent |
|
Change Order 001 |
C |
RETN |
S |
D1 = 3.5 percent |