Recognize Application Retention

Explanation

This activity is used to recognize an application retention. To have control of posting elements, a system object property named RETENTION is defined in IFS/Application Services. If the property value is set to TRUE, the retention is recognized and separate vouchers will be created. If not, retention postings will not be created.

When the valuation is set to the Application Received status, the retention and retention released amounts are posted in the application. Retention postings take into consideration both cumulative retention and the retention released. Following is an example of a contract with a 10% retention:

Create valuation V1 and receive application A1 for £100, no release of retention:

• AFP22 Credit 90 (Create received application amount, 100 -10)
• AFP21 Debit 90 (Create received application amount, 100 - 10)
• AFP27 Credit 10 (create received retention, 10% of 100)
• AFP28 Debit 10 (create received retention, 10% of 100)

Create valuation V2 and receive application A2 for £300 + release £8 retention (application cumulative value £390):

• AFP22 Credit 278 (Create received application amount, 300 - 30 + 8)
• AFP21 Debit 278 (Create received application amount, 300 - 30 + 8)
• AFP27 Credit 30 (create received retention, 10% of 300)
• AFP28 Debit 30 (create received retention, 10% of 300)
• AFP27 Debit 8 (received retention released)
• AFP28 Credit 8 (received retention released)

Prerequisites

• The valuation should be in the Planned status.

System Effects

• Retention values are recognized as non-cumulative amounts.
• The status of the valuation changes to Application Received, and vouchers are created automatically.
• Postings are created for the retention amounts using the Voucher Date, User Group and Voucher Type as defined in the Receive Application dialog box. More information about the postings created is available in Posting Types for IFS Sub Contract Valuation.

Window

Sub Contract Valuation

Related Window Descriptions

Receive Application
Sub Contract Valuation

Procedure

1. Open the Sub Contract Valuation window and query (F3) for the necessary valuation.
2. Right-click anywhere in the header, point to Status, and then click Receive Application. The Receive Application dialog box opens.
3. The default user group and voucher type appear automatically. You can change these values, if necessary.
4. Click OK.