Considerations for Creating Purchase Orders for Complex Services with Progress Payment Schedules

You can define progress payment schedules for fixed-price services, which are of high value and have long lead times. Using progress payment schedules, you can allocate estimated costs to various portions of work in a complex contract.

Here are some of the considerations for creating purchase orders for complex services with progress payment schedules:

• You can create purchase orders with progress payment schedules online or using REST services, but not using the file-based import (FBDI).

• Progress payment schedules are only supported if the purchase basis of the line type is AMOUNT.

• You can't enable progress payment schedules for document styles that have blanket purchase agreements enabled or have these seeded document styles: Standard Style, Consignment Purchases Style, Configure to Order Style, and Outside Processing Style.

• You can acknowledge complex purchase orders only at the document level.

• To view the amount retained from each schedule and the retainage amount released, use the View > Columns menu on the Schedules tab of the View Purchase Orders page and expose the Retainage and Retainage Released columns.

• When canceling the schedules, you can't reinstate the unfulfilled requisition demand for the individual progress payment schedules. However, you can reinstate the demand for the purchase order and lines in these cases:

  • When the purchase order isn't subject to budgetary control

  • When the purchase order document currency matches with the primary ledger currency of the requisitioning business unit

• You can use the progress payment schedule description as a source to create new journal line rules for creating encumbrance journal entries for purchase orders.

• Progress payment schedules also trigger intercompany transactions if financial orchestration flow applies for the procurement transaction.

• If you have to receive the progress payment schedules, you can use the My Receipts UI. When you set the progress payment schedules to accrue at receipt, Receipt Accounting books accrual for the received amount when receipts are recorded. However, when you set it to accrue at period end, Receipt Accounting books an accrual for uninvoiced receipts as part of the period end accrual process.

• When you match invoices with progress payment schedules, an amount is automatically withheld if a retainage rate is specified on the schedule and the payment due to the supplier is reduced by the retained amount. The invoice matching window and invoice lines table show the description from the purchase order schedules.