Set Up Steps for version 12.1 Complex Purchase Orders and Retainage
There are two setups steps that are required if the complex purchase orders and retainage feature will be used.
1. Create a document style in Oracle Purchasing.
Navigation: / Setup / Purchasing / Document Styles à Create
Define whether the complex PO can include advances, retainage, and progress payments.
Pay Items can be Milestone, Rate, or Lump Sum. For Fixed Price Services, rate based pay items will be considered quantity based matches and milestone and lumpsum will be considered amount-based matches when evaluating billed, planned, and tolerances.
Milestone pay items are based on a milestone in the contract or event that needs to be fully complete before the contractor can claim the associated payment.
Rate pay items are based on a ‘Rate’ of work completion. Payments for these can be claimed as units of work are completed.
Lump Sum pay items, as the name suggests, are based on a ‘Lump Sum’ amount allocated to a portion of work. Progress payments can be released for these pay items based on the level of completion.
If the “Treat Progress Payments as Contract Financing” option is selected, then pay items entered follow the Financing Complex Work case. If the option is not selected, then pay items follow the Actual Complex Work case.
Note: The profile option POR: Amount Based Services Line Type specifies how services are to be quantified and ordered on the transaction document. In order to use the Complex Services functionality, the value for this profile option should be set to ‘Fixed Price Services’, which means that services will be ordered as an amount. This setup is found performed in the System Administrator responsibility under System Profiles.
2. Create a retainage account in Financials Options setup.
Navigation: / Setup / Options / Financials Options
Enter the retainage account to use during accounting.
Note: Historically the prepayment account entered here would default to the supplier site and be used when creating prepayments for the supplier. However, the new Advances and Contract Financing prepayments introduced with this solution will use the distribution account on the Purchase Order and not the supplier site.