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    Yasmin
    How to reserve amount of the invoice in AP ?Answered
    Topic posted November 27, 2018 by YasminSilver Trophy: 7,500+ Points, last edited January 30, 2019, tagged Financials, Payables, Setup / Administration, Subledger Accounting, Tip 
    191 Views, 6 Comments
    Title:
    How to reserve amount of the invoice in AP ?
    Summary:
    How to reserve amount of the invoice in AP ?
    Content:

    Business case:

    We deal with our suppliers in a way that we reserve 10% of each invoice and pay only 90% of the invoice and when they successfully accomplish the project, we get them all the 10%s in out payment after 3 months of the final delivery 

    how can we do that in Oracle Cloud R13?

    Example

    AP Invoice 

    Invoice #123 original amount $10,000 

    we scored 10,000 in the header 

    in the distributions, we want to split the amount by 2 lines 

    line #1 9000 (will be paid to the supplier)

    Line #2 1000 (will be reserved to the supplier)

    AP Payment

    Payment #1 $9,000 (based on the agreed payment terms)

    Payment #2 (the sum of all the reserved amounts) 

     

     

    Best Regards

     

    Yasmin

    Best Comment

    Prithis Das

    You do not really need to split the invoice amount to two lines. What you can do is to have a single line for $10,000, and then split the Installments into two Installments of $9,000 and $1,000, and put the second Installment on Hold. This is done using the Manage Installments window that can be accessed from the Invoice Actions menu on the Invoice screen.

    The system will then pay the first installment of $9,000 on the due date, but will not pay the second installment unless the user removes the Installment Hold. The Invoice can be tracked through various reports as it will have an unpaid balance on it.

    When it is time to pay the withheld amount, the user can remove the Installment Hold from the second Installment on the invoice. The system will then select the second installment for payment.

    Comment

     

    • Prithis Das

      You do not really need to split the invoice amount to two lines. What you can do is to have a single line for $10,000, and then split the Installments into two Installments of $9,000 and $1,000, and put the second Installment on Hold. This is done using the Manage Installments window that can be accessed from the Invoice Actions menu on the Invoice screen.

      The system will then pay the first installment of $9,000 on the due date, but will not pay the second installment unless the user removes the Installment Hold. The Invoice can be tracked through various reports as it will have an unpaid balance on it.

      When it is time to pay the withheld amount, the user can remove the Installment Hold from the second Installment on the invoice. The system will then select the second installment for payment.

    • Becky Alvarez

      Prithis does provide the best solution.  I just want to add that with the new REST APIs that were released in 18C you can release the installment holds programmatically when ready and you can also split the installments and place the hold using these services so you don't have to do this manually unless you want to.  For more information see either the REST APIs for Financials Cloud document or the Release Readiness What's New Document.

      • Yasmin

        Thanks Becky,

        you are always there to help me, my dear.

        we will do the manual way until we get the automated one

        Really appreciated

         

        Yasmin

         

    • Mohammed Azhar

      Hi,

      Since Retention feature is not available in Oracle Fusion now, I would like to suggest the attached steps as workaround for Invoice Retention,

      Thanks & regards,