Define Maximum Retention on Contract
Explanation
This activity is used to define a maximum retention amount for sales contracts.
Some contracts requires a limit for the accumulation of retention. Defining
such a maximum retention ensures that even if the contract value increases the
retention amount is limited to the amount agreed in the contract initially.
Whenever an application for payment is processed through retention is calculated
as defined by the interim and final retention percentages. Once the accumulated
retention amount has reached the maximum amount the accumulation will stop and
any further work done and applications created will not contribute to the
retention amount changing.
Since it is possible to have a contract in many currencies it is required to
enter the maximum retention by currency. A maximum retention amount should be
entered all applicable currencies on the contract. When certifying applications
the application retention amount will be validated against the maximum retention
amount on the contract in the application currency.
Prerequisites
- An interim
retention percentage must have been defined on the contract.
- If maximum retention for currencies other than the contract currency is to
be used, the Currency Type (exchange rate list) must be defined on the contract
(Sales Contract/Defaults tab).
System Effects
- The defined maximum retention value gets updated in the Maximum Retention
field on
Sales Contract/Defaults tab.
Window
Sales Contract
Related Window Descriptions
Sales Contract
Procedure
- Open the
Sales Contract window and query for the required
contract.
- Enter an interim retention and/or final retention for the contract. The
retentions should be between 0% and 100%. Since the final retention is
included in the interim retention it should be less than or equal to the
interim retention.
- Right-click and click Maximum Retention. The
Maximum Retention dialog box will open. If Fixed value
is selected as the Maximum Retention Method, the dialog box will open to enter
the maximum retention values for different currencies. If Percentage
is selected as the Maximum Retention Method, the dialog box will open to enter
the currencies, and the same percentage defined in Sales Contract/
Default tab is applied to all currencies. If a currency other
than the contract currency is entered, the currency exchange rate date must be
entered.
- Click OK.