Withholding Retention on Purchase Order Invoices

The Purchase Order Processing module (POP) integrates with the Advanced Subcontractor feature. The integration allows retention to be withheld from purchase order invoices.

You must complete the following procedures before using POP with the Advanced Subcontractor feature.

• Assign a retention offset and retention liability account to each Job Cost division. See Set up offset accounts.
• Add a vendor to the job and enter a retention amount. See Adding subcontractors to a job record.
• Assign a subcontractor to at least one of the job's cost codes so retention can be calculated. See Adding subcontractors to a job record.

Step 1: Enter a purchase order

1. Choose Transactions > Purchasing > Purchase Order Entry.
2. Complete the Purchase Order Entry window as usual. See the Microsoft Dynamics GP Purchase Order Processing Manual for more information. In addition, complete the following fields:
   • Vendor ID
     Enter the vendor you have set up for retention.
   • Product Indicator
     Choose Job Cost from the drop-down list.
   • Job No.
     Choose a job that has the subcontractor/vendor assigned to one of the job's cost codes.
   • Cost Code
     Enter the cost code for the job.

Step 2: View the retention percentage

Choose the expansion button in the Item field in the Purchase Order Entry window to open the Purchase Order Item Detail Entry window. The retention percent displays in the Retention field.

Step 3: Enter a receipt

1. Choose Transactions > Purchasing > Receivings Transaction Entry.
2. Complete the Receivings Transaction Entry window. See the Microsoft Dynamics GP Purchase Order Processing Manual for more information. If this is a shipment/invoice receipt, you can edit the retention percentage. If this is a shipment receipt, you cannot edit the retention percentage. The extended cost of the item multiplied by the retention percent determines the amount to retain from the transaction.

Step 4: Enter an invoice

You must enter an invoice for shipment receipts.

1. Choose Transactions > Purchasing > Enter/Match Invoices.
2. Complete the Purchasing Invoice Entry window. See the Microsoft Dynamics GP Purchase Order Processing Manual for more information. You can change the retention percentage for each line item if the item is matched to only one shipment document. For items matched to more than one shipment document, choose the expansion button in the Matched to Shipment field to open the Match Shipments to Invoice window.

Step 5: View the result in Job Cost

1. Choose Cards > Job Cost > Job.
2. Choose a job, then choose Subs/Vendors. The Total field reflects the retention withheld.

Step 6: View the result in Microsoft Dynamics GP

1. Choose Inquiry > Purchasing > Transaction by Vendor. The payables transaction reflects the retention amount.
2. Choose an invoice and zoom on the Document Number field. The total amount of the payable displays in the Payables Transaction Entry Zoom window.