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As per Oracle Costing user guide on retainage.....
"Oracle Projects does not report on or interface project-related retainage distribution
lines as commitments or actual costs. Instead, Oracle Projects captures the full amount
of the expense as a commitment and, when applicable, for the funds check. Later, the
full amount of the expense is interfaced to Oracle Projects as an actual cost. Retainage is
related to the payment of the invoice and it ultimately does not have an impact on the
overall project cost."
So in relation with my previous example, if period end accounting is enable on procurment side then on raising of purchase order of 1000GBP and interfacing cost to oracle project, will be treated as commitment amount(1000GBP)? and when the invoiced raised / matched and accounted for 1st milestone let say 300 GBP then complete 1000GBP will be interface as actual cost or just 300 GBP will be as actual cost?
Really appreciate if you can me help in understand. :-)
Hello Expert / Dina,
Any luck on this?
The response I got from someone in Procurement development..."It has no impact on cost. The retention is accounted as a deferred liability."
Thanks for your response. So what i understood is no matter what is retention percentage define on purchase order whenever invoices matches to line that same amount is interface as actual cost. Coming back to my example - on Period end accrual , 1000 GBP is Purchase order. so 1000 GBP is shown as commitment in projects P1. Now invoice of 300GBP has been raised with 10% retention then this 300GBP will be reflecting as actual cost making commitment as 700GBP. This is I am talking about when period end accrual accounting is enabled and not receipt accrual.
I wanted to confirm this. if you could help me then it will be gr8.
Actual cost will be 300, as per the total invoice amount.
Remaining PO Commitment will be 700.
Thanks dina. !!!!