The Retainage Terms tab on the Payment Request transaction allows you to enter or override retainage terms. The Retainage Adjustment Amount and Retainage Adjustment Percentage fields enables you to either manually enter a retainage amount on a PRC that references a PO type transaction that does not contain Retainage Terms, or override (either as a dollar amount or percentage) the terms referenced from the award for that single payment request transaction. The Original Retainage Amount field will display the original commodity line retainage amount when retainage is entered/overridden on the payment request. Finally, the Retainage Override flag will be checked if a value is entered in either the Retainage Adjustment Amount or Retainage Adjustment Percentage fields. This update will be a powerful inference, meaning that as long as either field remains greater than zero, the system will enforce that the field is selected.
In cases where you wish to override the retainage terms with a “0.00” value on either the Retainage Adjustment Amount or Retainage Adjustment Percentage field; on validate, you must manually select the Override flag. In this situation, the system will update the originally calculated retainage amount to the Original Retainage Amount field, and set the original retainage amount on the commodity and accounting line to zero (0.00). Note that because no retainage is withheld from the payment, no record will be created or updated on the Retainage Detail record when the PRC is submitted to final.
If you decide not to override the referenced retainage terms and both the Retainage Adjustment Amount or Retainage Adjustment Percentage fields are blanked out; on validate, the system will leave the Retainage Override flag unchecked, reset the Original Retainage Amount value to “0.00” and recalculate the Retainage Amount based on the retainage terms on the referenced award transactions.
Only one field entry (Retainage Adjustment Amount or Retainage Adjustment Percentage), will be allowed on a single Retaining Commodity Line. When retainage terms are modified on a Payment Request transaction, the impact is only for that specific Payment Request. Any subsequent Payment Request transactions processed will adhere to the retainage terms established on the referenced award transactions.
If the Retainage Adjustment is entered as a percent on the payment request, upon validate/submit, the system will calculate the dollar amount of retainage based on the specified percentage multiplied by the Line Amount on the Commodity Line.
If the Retainage Adjustment is entered as a dollar amount on the payment request, upon validate/submit, the system will replace the calculated retainage amount with the dollar amount entered in the Override Dollar Amount field. The Retainage Adjustment Amount cannot exceed the Commodity Line Amount.
For example:
A commodity line amount is for $20,000.00 and has retainage terms of 0-100% retain 25%.
The first payment request created for $10,000.00 will automatically calculate $2,500.00 as the Retainage Amount because the transaction references a PO Transaction with Retainage terms. In addition, $7,500.00 will be calculated as the Payment Amount.
If, after the first validate, the user enters 35.00 on the Percent field of the Retainage terms subsection and re-validates the transaction, the system will check the Retainage Override flag to indicate the term was overridden.
The system will update the Original Retainage Amount with the $2,500.00 amount.
The system will recalculate $3,500.00 as the Retainage Amount and $6,500.00 as the Payment Amount.
When the payment request is submitted, the retainage posting routine for the payment transaction will perform the standard updates to the Pending Retainage and set the Retainage Override flag to checked on the Retainage Detail record, and update the Pending Retainage on the Retainage Summary By Commodity Line page.
In cases where a Retainage Adjustment Amount or Retainage Adjustment Percentage are entered on the Payment Request that references an Award without retainage terms previously established, the Payment Request transaction will create a new record on Retainage Summary By Commodity Line and issue a warning message. Upon a successful submission of the Payment Request, the transaction will create a new record on Retainage Detail table and update the Pending Retainage Amount and the Retainage Override flag. The Payment Request transaction will create a new record on the Retainage Summary By Commodity Line page for the referenced Award commodity line and update the Commodity Line Amount, Total Payments Associated with Retainage, and Pending Retainage Amount. Because the PRC transaction will not update the retainage terms on the referenced Award’s commodity line, the retainage terms fields (sections 1-5) for the new record on Retainage Summary By Commodity Line page will be set to ‘0.00’. Subsequent Payment Request transactions that reference the same Award will not automatically calculate retainage. The retainage entered on the Payment Request applies to that transaction only.