Distributing a Payable to a Job and Cost Code

When the vendor's invoice arrives for payment, you must create a payables transaction and distribute the invoice to the correct job and cost code. This allows retention to be withheld.

1. Select Transactions > Purchasing > Transaction Entry.
2. Complete the Payables Transaction Entry window. See the Microsoft Dynamics GP Purchase Order Processing Manual for more information.
3. Select Distributions.
4. From the Product Indicator drop-down list, select Job Cost.
5. Enter a Job Number and Cost Code for the subcontractor. The expense amount for the cost code in the Debit field appears as the default. If you enter a return or a credit memo, the amount appears in the Credit field. The cost code displays automatically if you set up default payables cost codes in Job Cost and assigned the cost code to the job by distribution type.
6. Enter amounts, complete the distribution, and select OK. See Entering payables transactions for details. Retention will be automatically calculated and distributed.
7. In the Payables Transaction Entry window, select Post.

While intercompany transactions can be used with Job Cost subcontractors, information such as retention and master subcontractors will not be updated in the destination company. Separate accounts payable debit distribution amounts are not created for retention amounts. Instead, the accounts payable credit account is decreased by the amount of the retention.