R12 Retainage Step by Step in oracle apps

Retainage refers to a portion of the payment that is withheld until the completion of a project. In that case the client doesn’t pay the contractor/party the retainage until all work on the project is complete. Retainage is negotiated upfront and is stated as a percentage or amount of the overall cost of the project.  There is no limit for Retainage.

Steps Involved in Retainage
1. Create a document style in Oracle Purchasing
2. Create Retainage Account through Payables
Let’s discuss the steps below …

1. Create a document style in Oracle Purchasing.
Responsibility: Purchasing

Navigation:  Setup –  Purchasing – Document Styles  – Create





Click – Create


Click Apply


2. Create a retainage account in Financials Options setup.
Responsibility: Payables
Navigation:  Setup – Options – Financials Options
Enter the retainage account to use during accounting.



Enter the Retainage Account –

1. Create a procurement purchase order in Oracle Purchasing.
   Responsibility: Purchasing
   Navigation: / Buyer Work Center / Orders
   Select the complex PO document style in the Create drop down box or select ‘More’ to find the complex PO document style if it is not listed in the LOV.
2.  Create –Choose  Complex PO

Click Go
Enter the Details here


Enter the Header info and click on Lines.
Enter the line information

Click on Update icon to enter the Financing  Options.

Enter the Distributions details

Click Save