Outputs
of Retainage Payout ProcessIn Advantage Financial, retainage can be paid out throughout the life of the Award, or upon completion of the Award. The accounting entries posted will vary depending on the payout method selected. The Retainage Payout process is a group of batch jobs that will automatically select and create transactions to release or forfeit retainage.
The Retainage Payout chain process will generate a Retainage Payment Forfeiture (RTGPF) transaction. The Payout Method, Schedule Payment Date, invoice as well as the other fields in the Payout Terms sections on Retainage Summary By Commodity Line page will be completed on the transaction through the batch process. The field values will be displayed on the corresponding tab of the transaction. For example, the Payout Method, Requested Schedule Payment Date, and request release amount will be updated to the transaction Header. The event type, based on the payout method selected, will be updated on the onto the accounting line tab.
Upon successful submission of the RTGPF transaction, the transaction will create new record(s) on the Retainage Released/Forfeited table and perform the standard transaction updates. Also, the transaction will update the corresponding records on the Retainage Detail and Retainage Released/Forfeited tables.
The funding elements on the Payment Request are based on the original expenditure and/or the information stored on the Post Award transaction. For release of Retainage, the Retainage Payout process will use the FIFO (First In, First Out) method of retrieving the original expenditure accounting line. The first expenditure accounts in the retainage bucket are the first ones out of the bucket.
All expenditures related to an Award with Retainage Terms are maintained in the system until the Award is closed.
An Award is not considered closed until the Award terms have been satisfied and retainage has been fully paid out.
All Payment Requests that reference an Award are linked to the Award, as long as the Award is still open. This will allow you to access the Payment Request for inquiry, as well as provide the payout process to retrieve the original expenditure and the retainage held against it. Each payout against the original expenditure should reduce the retainage withheld and the difference stored for the next payout cycle. If the Payment Request is ‘Memo’ referencing an Award that has retainage terms, the Payment Request should not calculate retainage.
The retainage payout must be to the original expenditure accounts.
Forfeiture of retainage is calculated based on the FIFO method or by the terms established on the Fund. This choice is entered by the Retainage Forfeiture Option on the Application Parameters table. Please see the "Retainage Setup" topic in this guide for more information.
Once the Schedule Payment Date, Payout Method, and other parameters have been entered on the Retainage Summary By Commodity Line page, the Retainage Payout process begins the process of selecting the specific expenditures to liquidate for retainage. The Retainage Payout process provides a number of batch parameters to allow event type set up for different payout or forfeiture situations. Refer to the "Accounts Payable Accounting Model" topic in the CGI Advantage - Financial Administration User Guide for details on the various event types.
Please note that Commodity Encumbrance Corrections with the Inverse Reference Type do not update retainage tracking. Such events have to manually accounted for in the payout or forfeiture event. To assist with this analysis, there is the Retainage Suspect After Encumbrance Correction report. Refer to the CGI Advantage - Accounts Payable Run Sheets Guide for more information on this report.
Outputs
of Retainage Payout Process