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ReportHello there D.M.-azing D365 Community!
We are heading on another week and on another article for Dynamics 365 for Finance and Operations to read and share.
This write up will be focused in discussing Payment retention which is commonly present when a company enters in a construction contract either as a contractor/subcontractor or as a contractee/client.
The payment retention feature in D365 F&O is available on Project management and accounting module. There are two kinds of retention in D365 F&O, namely: Vendor payment retention and Customer payment retention. And for this article, join me as I explore and unbox the feature called Vendor payment retention.
Let's begin. First things first. Let's see how do we setup Vendor payment retention terms.
1.a. Navigate Project management and accounting > Setup > Retention > Vendor payment retention terms.
1.b. Click New, rule ID will be automatically assigned then enter a value on the description field.
The Rule ID is setup under Project management and accounting > Number sequences > Vendor retention term.
1.c. Click Add line then fill up columns for the following:
- Percentage of units delivered
- Percentage to retain
- Percentage to release
Now that we are done with our setup. Let us see how we can apply this in our transaction.
2.a. Create a project. Project management and accounting > Projects > All projects > New.
2.b. Once created, click Add line under Vendor agreements and select the appropriate vendor retention terms.
2.c. Once done, we can proceed in creating transactions like Purchase order related to the project.
Note: Before creating a transaction in a project make sure that stage is set to Released.
Let us now apply this vendor retention term in a Purchase order.
3.a. Create a Purchase order for the vendor or vendor group selected during Vendor agreements setup either directly on the project or thru Procurement and sourcing and link it to a project.
Notice on the vendor retention term has been assigned on the Purchase order line.
3.b. Once done in processing the purchase order, we can now proceed in the invoicing process.
Notice under that Line details > Vendor payment retention group, the system automatically computes for the amount to be retained based on vendor payment retention terms.
Now, an amount has been retained and put on hold for payment to contractor/subcontractor and will be released on latter part of the project contract.
The Posting type - Vendor retention main account is maintained on General ledger > Posting setup > Accounts for automatic transactions.
That's all for now. I hope that you find this article as a helpful tool for you to better appreciate and understand, everything and anything, about Microsoft Dynamics 365 for Finance and Operations.
It will truly be a privilege if you will allow me to know your thoughts and suggestions for me to further improve the coming featured articles on our blog.
This is Ms. Dynamic Millennial blog. Be equipped. Be informed.
For more related articles, kindly click the below links: https://msdynamicmillennial.wordpress.com or https://community.dynamics.com/365/financeandoperations/b/ms-dynamic-millennial.
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