Does anyone know the best way to write off retainage withheld on a purchase order?
We sometimes have instances where we need to write off retainage withheld. What is best practice for writing off retainage?
Answers
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I am thinking this is an accounting issue, not an Oracle issue. Yamhill County charges the full amount of each invoice against the PO. When we prepared the voucher/invoices, we record the retainage amount as a credit to a liability account in the GL, and the net is paid out on the check/AHC. When the contract is complete, we pay the retainage to the vendor, and charge it to the liability account, not against the PO because that has already been exhausted. In the end the PO is fully liquidated. If you would like to see a memo, let me know.
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This is also our process.
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We utilize the Oracle Complex PO's and have retainage automatically put to the liability account. We release the retainage through the invoice type retainage release. However, we have times where we do not wish to pay the retainage and need to write it off on both the PO and the liability. I am having difficulty finding anything that provides guidance on how to do the write off in Oracle.
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Interesting. I have not had that before. I am curious what others would do in your situation.