Advantage Financial supports the capture of collateral in lieu of retainage withheld. When the vendor chooses to provide a collateral in lieu of retainage, a new record must be added to the Collateral Management (COLLM) table. The Collateral Management page will be used to record the collateral received for a Revenue Contract. A new record should be added by entering the Award Transaction Code, Award Transaction Dept, Award Transaction Unit (optional), Award Transaction ID, Custodial Account Number, Required Market Value, Par Value, and Extended Description (if necessary). The record’s Active flag will automatically default to checked if a record has been set up on Retainage Summary By Commodity Line page to substitute collateral.
Advantage Financial will verify that the Award information entered (Transaction Code, Transaction Dept, and Transaction ID) corresponds to an existing (finalized) Award already in the system. If the Award exists, the record will be saved. The new Collateral Management record will provide a link to the Award based on the Award information as well as a link to Retainage Summary By Commodity Line page. If the Award does not exist or has not been finalized, the record cannot be saved on the Collateral Management table.
Once the Award terms have been met, or the withheld collateral for a revenue contract is to be returned to the vendor, the collateral will be released. The actual return of collateral will take place outside of the financial system. The recording for the release of collateral will be done by manually entering the Amount of Last Collateral Release amount and Date of Last Release on the Collateral Management table. Once the collateral is released to the vendor, the user will enter the Collateral Released amount and the Date of Last Release. When the entire collateral withheld amount has been released to the vendor, the user should uncheck the Active flag to indicate there will be no further activity for this record. No accounting entries will take place for the release of collateral.