Understanding Retainage for JD Edwards EnterpriseOne Service Billing

Retainage is a percentage of the invoice amount that your company is paid after work is complete. For example, you can have a 10 percent retainage withheld on the invoices to a customer. You release retainage when the work is completed and the customer authorizes the payment of the amount of the invoice that was withheld.

You define the retainage calculation and accounting rules on the G/L Offset and Retainage Information table (F48128). When you run the Invoice Generation program (R48121), the system uses these rules to calculate retainage and assign the retainage offset. You can review and revise the system-calculated retainage and the retainage offset using the Service Billing Invoice Entry form.

You can change retainage amounts or percents for individual invoices on the Service Billing Invoice Entry form (W4822B). For example, you might need to change a retainage amount if you have changed the retainage rules for the system, but you generated invoices before the change.

When you enter a retainage amount or percentage for an invoice amount, the system calculates the retainage and updates the pay item with the retainage amount. You might need to recalculate retainage because you have:

• Manually changed the retainage amounts or percentages for an invoice.

• Added records to an invoice.

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

The rules governing the retainage calculation are set up in the G/L Offset and Retainage Information table (F48128). The system uses these rules during invoice generation to calculate the retainage amount and assign an offset.