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

System Effects

Window

Sales Contract

Related Window Descriptions

Sales Contract

Procedure

  1. Open the Sales Contract window and query for the required contract.
  2. 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.
  3. 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.
  4. Click OK.