Understanding Retainage for JD Edwards EnterpriseOne Contract Billing

Retainage is a percentage of the billing amount that your company is paid after a specified portion of work on the contract is complete. For example, you might have a 10 percent retainage until 50 percent of the job is complete, and then 5 percent retainage until 95 percent of the job is complete. You release retainage when the work is completed and the customer authorizes payment of the billing amount that was withheld.

You set up retainage for a contract, change order, or billing line on the contract master using retainage rules that you define. You define retainage rules using the Retainage Rules Table Revisions program (P5204). When you generate invoices for the contract, the system uses the retainage rules to calculate retainage amounts. The system assigns the retainage offset based on information from the contract master. You can review and revise the system-calculated retainage amounts on the Billing Line Revisions form, which you access from the Batch Review program (P48221).

The system calculates retainage amounts when you generate invoices for a contract to which a retainage rule has been assigned. You can review and revise the system-calculated retainage amounts. If you revise the amounts, you can recalculate the retainage to return to the original retainage amounts.

You revise retainage amounts if you manually change the billing amount for a contract billing line or you manually enter an invoice amount for either lump sum or unit price. If you make either of these changes after you run Invoice Generation, the system does not automatically recalculate retainage.

If the invoice amount for a fee line does not exist or is incomplete, the system does not automatically calculate fees when you enter the billing amounts manually. In this case, you must manually revise the pay item amount for both the fee line and the retainage or recalculate the fee and the retainage.

You might need to recalculate retainage because you:

• Manually changed the retainage amounts or percentages.

• Added records to an invoice.

• Changed the retainage rules for the system after you generated invoices with retainage.