## Processing Progress Payments

This chapter provides an overview of progress payments and discusses how to:

- Create subcontract vouchers.

- Process retainage.

### Understanding Progress Payments

You make progress payments to the subcontractors as they make progress against their contracts. You draw progress payments from the funds that are committed to their contracts.

To make a progress payment, you must first enter a voucher into the JD Edwards EnterpriseOne Subcontract Management system. Vouchers contain the details of a payment and enable you to create a payment that is drawn against the commitments for a contract. After you enter a voucher, you can review and post it. You can then work with the voucher to change the method that the system uses to process payments. You can also correct a voucher that was entered incorrectly.

Note. The terms voucher and progress payment have the same meaning in the JD Edwards EnterpriseOne Subcontract Management system and the JD Edwards EnterpriseOne Procurement system.

In addition, you make progress payments to release some or all of the retainage against a contract. Retainage is a percentage of the committed amount that is held until a specified date after the completion of the contract.

When you are ready to make payments, you can process progress payments.

You can also set threshold amounts for progress payments. The currency that you specify in the Supplier Master (P0401) is used as the default currency for the threshold amount. During progress payments, the system checks to determine whether a voucher exceeds the threshold specified in the Subcontractor Threshold program (P4355). If the threshold amount has been exceeded, the system places the voucher on hold. The voucher is then on a pay status code hold. You can set vouchers on pay status holds for threshold by setting the processing options for the Process Tab-Threshold pay status code on the Voucher Match, or Progress Payment, program (P4314).

For a progress payment and retainage release, you enter a cumulative percent or amount of the total. Thus, you do not have to precalculate the pay amount when you have only the percent complete available.

You enter progress payments for quantities that exceed the original contract estimates if this is a permissible business practice. This functionality eliminates the requirement to enter change orders, thus increasing process efficiency.

Progress Payments and Subcontract Vouchers

To make progress payments, you must first create a voucher in the JD Edwards EnterpriseOne Subcontract Management system. Vouchers contain the details of a payment and enable you to create a payment that is drawn against the commitments for a contract. You use vouchers to determine the amount and type of payment that you are processing.

Before you can pay a subcontractor, you must create a voucher that:

- Indicates that the terms of a transaction are met.

- Specifies the amount to pay the subcontractor.

- Notifies JD Edwards EnterpriseOne Accounts Payable to cut a check.

You can also create vouchers:

- To withhold a portion of the gross payment as retainage.

  Retainage is a percentage of a committed amount that is held until after the order is complete. For example, if you create a voucher for 100.00 with retainage of 10 percent, the actual payment is 90.00, with 10.00 held as retainage. You release retainage by entering a payment voucher for the amount that you want to release.

  See Processing Retainage.

- To make progress payments on a contract.

- For units if you are paying against a unit based order.

  In a unit-based order, you create payments based on the number of units completed. You should enter either the number of units for which you are paying or the gross payment. The system then calculates the other value based on the price per unit.

Progress Payments is a version of the Voucher Match program (P4314). It includes specific information for the JD Edwards EnterpriseOne Subcontract Management system. The system provides a Work With Contracts form on which you can further specify which contracts you want to match. You can select whether to match contracts, receipts, retainage, or all three. You can also access the Subcontract Ledger Inquiry program (P0411) or the Subcontract Order Entry program (P4310). The processing options for P4314 include a Progress Payments tab on which you can specify how the system processes payments.

From the Work With Contracts form, you can:

- Select contracts to pay.

- Select receipts to pay.

- Select retainage to release.

- Specify threshold tolerance.

- Review subcontract orders.

- Review the subcontract ledger.

- Pay using cumulative percentages or amounts.

- Access log functionality.

Note. Set the Option Default processing option on the Progress Payments tab of P4314 to 1 to have the system match the quantity and amount when performing voucher match.

American Institute of Architects (AIA) Application for Payment

The AIA Application for Payment is similar to the American Institute of Architects (AIA) Document G702, titled Application and Certificate for Payment. It is a report that lists base contract and change order commitment amounts in addition to previous amounts that were billed and retained.

Additionally, you can print and send the Waiver of Lien form when you send a subcontractor the AIA Application for Payment. The Waiver of Lien states that the subcontractor has been paid and that no outstanding liens are associated with the work on the contract.

See R44440 - AIA Application for Payment.

#### Prerequisites

Before you complete the tasks in this section:

- Set up A/P payment processing.

  See Entering Supplier Master Records, Writing Payments, Setting Up a Print Sequence for Payments.

- If the business process warrants matching individual lines, ensure that you have set the Option Default processing option on the Progress Payment tab of P4314 to blank.

  This ensures that you have the Option field available to you on the Work With Contracts form, where you can specify whether to bypass detail lines during the progress payment process.

- Ensure that you have the Interface Option processing option on the Progress Payments tab of P4314 set to activate progress payments.

### Creating Subcontract Vouchers

This section provides overviews of subcontract vouchers, voucher matching, and invoices received in an alternate currency, lists prerequisites, and discusses how to:

- Set processing options for Voucher Match (P4314).

- Set processing options for A/P Standard Voucher Entry (P0411).

- Set processing options for Freight Distribution (P43147).

- Select records to match to a voucher.

- Select order detail lines to match to a voucher.

- Select order detail lines for freight vouchering.

See Also

Entering Standard Vouchers

#### Understanding Subcontract Vouchers

You must create a voucher before you can pay a supplier or a subcontractor. You create vouchers in the JD Edwards EnterpriseOne Accounts Payable A/P Standard Voucher Entry program (P0411).

You create a voucher from the order detail line to make progress payments on a contract, or to release retainage.

You can create a voucher for an amount if you are paying against a lump-sum contract. A lump-sum contract is a contract in which you specify progress payments as amounts. If you have multicurrency activated, you can enter a voucher for the designated currency type. You can include retainage in lump-sum contract vouchers.

You can also create a voucher for units if you are paying against a unit-based order. In a unit-based order, you specify progress payments based on the number of units completed. You should enter either the number of units for which you are paying, or the gross payment. The system then calculates the remaining value based on the price per unit.

For example, if you enter a voucher for 1,000 square feet of drywall at a cost of 0.25 per square foot, the system calculates the gross payment as 250.00. Conversely, if you enter a voucher for 250.00 with a unit price of 0.25, the system calculates the number of units as 1,000.

If you have multicurrency activated, the system calculates the total values based on the currency that you select. For example, if you enter a voucher for 1000 units at 0.25 per unit, the system calculates the total payment in the currency that you specify.

You might need to make a correction to a voucher. To make the change, you must create a new voucher that reflects the adjustment to the previous voucher.

Supplier Classification Codes

Classification codes capture information about a supplier in the supplier's address book record in the JD Edwards EnterpriseOne Address Book system. At the time a voucher is created, the classification code fields are populated from the supplier's address book record in order to report vendor information at the time of payment.

The classification codes are display-only on the Voucher Match form (W4314A). The classification code field values are not written to the Purchase Order Receiver table (F43121).

For U.S. federal government contracting, vendor information must be reported at the time of payment. The vendor classification information is passed to the accounts payable ledger record where the values are stored in the Accounts Payable Ledger table (F0411).

See Entering Additional Order Header Information.

Subcontract Retention

Subcontract retention is a percentage of a committed amount that is held until a specified date after the order is complete. Retention processing applies to on-going projects and applies only to services lines. Retention is not applicable to inventory-based purchase order lines where the full cost of the product is due upon receipt of the product.

Note. In some industries, subcontract retention may be called retainage. Thus, the terms retainage and retention may be used interchangeably.

See Processing Retainage.

Expense at Voucher Match

In a commercial, cost-reimbursable, project-related environment, the assumption is that an expense will be included on the next invoice to the client as soon as an expense is posted to the project. This expense must also be paid to the vendor in a timely fashion. Because payments depend on the vendor invoice, not the receipt of the goods, the expense cannot be billed until the vendor invoice is received. When receipts are created, the amounts should not be posted to the expense account but must be postponed and then expensed at voucher match.

To postpone expensing until the time of voucher match, you select Expense At Voucher on the Line Type Constants Revisions form (W40205B) in the Line Type Constants program (P40205). You set this option for inventory interfaces A and B only. When this option is set, journal entries will not be created for the received goods or service during the purchase order receipts process. Only voucher match will post the amounts to the expense accounts on the purchase order.

If Expense At Voucher is selected in Line Type Constants (P40205), then you must also select A/P Interface. The A/P Interface is a code that indicates that the system reflects the monetary or unit value of any activity containing this order type in Accounts Payable.

You may also select Voucher Match Variance Account on the Line Type Constants Revisions form to indicate the account to which the system books a variance. This field is used in conjunction with an inventory interface of A or B only.

When you perform two- or three-way match, you use purchase order receipts to perform a physical receipt of the service line or item on the order. The PO Receipts program does not update the expense or received not vouchered (RNV) accounts.

The Expense At Voucher option is not related to the Procurement Receipt Requiredoption. If Expense At Voucher is selected and Procurement Receipt Required is cleared on the Line Type Constants Revisions form, then you may or may not create a receipt. If the receipt process is performed, then expensing is postponed until voucher match. Thus, receipts do not create any journal entries. If the receipt process is not performed, then the standard two-way voucher match will occur.

After you receive the invoice from the supplier, you perform voucher match, which updates the expense and AP Trade accounts. The system does not create an RNV entry (AAI 4320) for this line during voucher match. The system performs commitment relief as well as the following calculations:

(Expense) = (Debit Receipt Amount)

(Variance (or Expense)) = (Debit Variance Amount)

(AP Trade) = (Voucher Amount)

When you are performing voucher match on a purchase order line, the receipt amount is booked to the expense account. Based on the Voucher Match Variance Account setting in Line Type Constants, the variance (if any) will be booked either to the expense accounts on the purchase order or to the variance accounts (AAIs 4330 and 4340). The AP Trade account is credited with the voucher amount.

When landed cost is enabled during the purchase order receipt process, landed cost writes general ledger records. The use of service units for A/P matching does not change the landed cost functionality.

Note. Landed costs are not affected if Expense At Voucher is selected; thus, the accounts for AAIs 4385 and 4390 are created during the receipt process.

Note. If Receipt Routing is selected and the order is set up to go into route, a hard error will be issued.

See Order Line Types.

Service Units for A/P Matching

You can enter service unit information for services contract order lines during the voucher match process. Service units are informational only, so the system does not perform any validation against the values.

Service units must be activated by selecting the Procurement Allow Service Units option on the Line Type Constants Revisions form. The system validates that the Procurement Allow Service Units check box is selected for noninventory interface A and B only.

Set the Display Service Units processing option on the Display tab of the P4314 processing options.

If the processing option is set, the Service Quantity and Service UoM fields appear on the Voucher Match Header (W4314A), Receipt to Match (W4314B), Orders to Match (W4314C), and Voucher Match Reversal (W4314H) forms. Although both the Service Quantity and Original Quantity fields appear on the voucher match forms, you cannot use both fields for a line.

If the Display Service Units processing option on the Display tab of the P4314 program is selected, then the Service Quantity and Service UoM fields appear on the PO Multiple A/c Distribution form (W43146A) both in the header and grid.

When landed cost is enabled during the purchase order receipt process, landed cost writes general ledger records. The use of service units for A/P matching does not change the landed cost functionality.

See Setting Processing Options for Voucher Match (P4314).

See Selecting Records to Match to a Voucher.

See Order Line Types.

See Multiple Account Distribution.

Freight Vouchering

Typically, freight charges are spread only to inventory line items because calculation of freight is based on item characteristics such as weight or volume. However, freight charges can also be charged to nonstock items and service lines. You spread invoiced transportation freight charges from the supplier to the appropriate services lines so that each nonstock line absorbs a proportion of the overall transportation cost that is associated with the service.

When vouchering during two-way or three-way voucher match, you apply the freight charges proportionately to those lines to which freight applies. You distribute freight charges from a supplier to different general ledger accounts for lines with an inventory interface of A and B only. You determine the amount to assign to the job of each line that you can distribute by percentage or amount. You use either the same job and account code as the base charge or the same job as the base charge with a different object account code from the base charge.

On the Voucher Match program (P4314), set the Freight Distribution (P43147) processing option on the Versions tab to call a version of the Freight Distribution program (P43147). Also set the processing options on the Freight Distribution tab.

Set the processing options for the version of P43147 called by P4314.

During voucher match, select 5 in the OP (match processing) field (from user-defined code (UDC) 43/VM) on the Voucher Match form to enable freight distribution on the line.

The Freight Distribution program is called dynamically when the line is exited for any changes made to the freight line. You can also select Distribute Freight on the Row menu to call the Freight Distribution program.

The Freight Distribution program enables you to distribute the freight charge that is created during voucher match and allocate the amounts to the jobs of existing lines on the voucher. The system displays existing voucher lines of inventory interface A and B.

A freight distribution line with inventory interface of A does not allow a quantity for the line. You must enter an amount and a valid account number. The supplier number for the voucher is used for the freight line.

On the Freight Distribution Revision form (W43147A), you select to distribute by percentage or amount. For a multiple account distribution line, the parent line (from the F4311 table) is not displayed but the multiple account lines (from the F4316 table) are displayed.

When you exit a detail line, the Distributed and Remaining field values are recalculated. The total amount must either equal zero or equal the amount on the line from voucher match.

The freight account, either the account on the line or the account determined by the financial AAI, appears in the grid. You cannot override this account on the form.

Note. The system uses financial AAI PCFRTD for freight distribution.

If you return to the Voucher Match form and change the amount on the voucher line, then you must return to the Freight Distribution Revisions form to modify the amounts if distributing by amount. You can also return to the Freight Distribution Revisions form to make overrides.

If you return to the Voucher Match form and select additional lines for vouchering, the system assigns zero amounts to the lines. You must manually modify the amount or percentage for these lines using the Freight Distribution Revisions form.

The Freight Distribution workfile record (F43147) is deleted at the completion of the transaction. Purchase Order Detail File (F4311) records are not created for the freight line during voucher match. The system creates general ledger and accounts payable records.

Taxes are allowed for a freight line.

The following functionality is not supported when you are using freight distribution:

- Service units for accounts payable matching.

- Retainage.

- Landed cost.

To perform a voucher match reversal for a line with 5 in the OP field, you must manually remove the record from the F0911 table. You cannot perform a reversal at shipment confirmation.

See AAI Tables for the Financial System.

See Selecting Order Detail Lines for Freight Vouchering.

#### Understanding Voucher Matching

To match a voucher, you must locate the subcontract record that corresponds to the progress payment that you want to make. The system creates a voucher interactively when you match the record to a payment.

You can match order detail lines to invoices to create vouchers. For example, if a subcontractor sends you an invoice for 100.00, you must locate and match the order detail lines that contain the corresponding 100.00 worth of services.

Note. You can select multiple order detail lines to match on a single voucher.

You must purchase against account numbers to enter new detail lines during the voucher match process. You cannot add stock-based order detail lines during the voucher match process.

When you try to create a voucher against an order line for which a receipt is required, you receive an error message.

When you try to create a voucher against an order that has a payment hold, any of these results might occur:

- You receive a soft warning, which indicates an outstanding log warning.

  You can enter and process payments as usual.

- The new payments automatically have a pay status of H, which indicates that the contract hold code automatically holds payments against an order.

  You must manually change each voucher to approved pay status.

- The system does not allow you to enter a payment voucher, which indicates that the vendor hold code for the supplier is set to not allow any payments.

- You cannot enter payment vouchers until the hold is removed.

You can also enter a specific tax amount for each receipt record on the Voucher Match form. If you enter a tax amount, you must also enter the tax rate/area and an explanation for the tax.

To account for variances in the exchange rate, you can set up AAIs. If you enter a new exchange rate during the voucher match process, the system creates journal entries to account for the variance between costs incurred at the old exchange rate and costs incurred at the new exchange rate.

#### Understanding Invoices Received in an Alternate Currency

If you enter a subcontract order in a domestic or foreign currency and a subcontractor submits an invoice in an alternate currency, you cannot automatically match the domestic or foreign order to the invoice. Instead, you must manually convert the alternate currency invoice amount to the domestic or foreign currency and then enter the voucher with that (domestic or foreign currency) amount.

For example, if a French company enters an order in Canadian Dollars (CAD) and the supplier submits the invoice in Japanese Yen (JPY), you must manually convert the invoice amount to the domestic (EUR) or foreign (CAD) currency and then enter the voucher for that amount. Likewise, if a Canadian company enters an order in Japanese Yen and the supplier submits the invoice in U.S. Dollars (USD), you must manually convert the invoice amount to CAD or JPY and then enter the voucher for that amount.

For future transactions, consider changing the currency code on the supplier master record so that orders, vouchers, and payments for the subcontractor are processed using the alternate currency.

#### Prerequisites

Before you complete the tasks in this section:

- Review all processing options for Standard Voucher Entry and Voucher Match.

- Specify the voucher match version.

- Set up financial AAI PCFRTD to support freight vouchering.

#### Forms Used to Create Subcontract Vouchers

Form Name | FormID | Navigation | Usage
Work With Contracts | W4314E | Subcontract Processing (G43D11), Progress Payments | Select the contract for which you want to create a voucher.
Voucher Match | W4314A | On the Work With Contracts form, select the record you want to match with a voucher and click Select. | Select records to match to a voucher. Select order detail lines to match to a voucher. You can also select more records if needed. Match a voucher to selected subcontract orders. View supplier classification codes on the Supplier Classification Codes tab.
Select Orders To Match | W4314C | On the Voucher Match form, select Orders To Match from the Form menu. | Select order detail lines to match to a voucher.
Supplier Ledger Inquiry | W0411G | On the Work With Contracts form, select a record and select Subcontract Ledger from the Form menu. | Review the subcontract ledger for a subcontract order.
Freight Distribution Revisions | W43147B | Select a row with 5 in the OP field and then select Distribute Freight from the Row menu on the Voucher Match form. Alternatively, select 5 in the OP (match processing) field and click off the row. | Select order detail lines for freight vouchering.

#### Setting Processing Options for Voucher Match (P4314)

Processing options enable you to specify the default processing for programs and reports.

Defaults

These processing options define the default information that the system uses during Voucher Match (P4314).

1. Inquiry Order Type and 2. Voucher Document Type | Specify the type of document. This UDC (00/DT) indicates the origin of the transaction. Document type codes are reserved for vouchers, invoices, receipts, and time sheets, which create automatic offset entries during the post program. (These entries are not self-balancing when you originally enter them.) You must enter a value that has been set up in UDC 00/DT. Oracle has defined these prefixes for document types, and Oracle recommends that you not change them: P: Accounts Payable. R: Accounts Receivable. T: Payroll. I: Inventory. O: Purchase Order. J: General Accounting/Joint Interest Billing. S: Sales Order Processing.

Display

These processing options control whether the system displays certain types of voucher match information, such as the approver number and reporting code.

1. Approver Number | Specify whether to display the approver number code. Values are: Blank: Do not display 1: Display
2. Reporting Code | Specify whether to display the column for Reporting Code 007 in the detail area on Voucher Match. Values are: Blank: Do not display. 1: Display.
3. Account Number | Specify how the system displays the account number. Values are: Blank: The system displays the account number as one field. 1: The system displays the account number in three individual fields (Business Unit, Object Account,and Subsidiary).
4. Business Unit | Specify the text that describes the Business Unit field (alias MCU). This processing option affects only the header area on Voucher Match, not the detail area. Values are: Blank: The field appears as Branch/Plant. 1: The field appears as Job. 2: The field appears as Project. 3: The field appears as Business Unit.
5. Display Retainage Indicator | Specify whether to display the Retainage Indicator column in the grid on the Voucher Match form. The Retainage Indicator field is a visual indication that the accounts payable clerk uses to verify whether retainage occurred on the invoice and whether it should be applied to the voucher. Values are: Blank: Do not display. 1: Display.
6. Display Service Units | Specify whether to display the Service Quantity and Service UoM fields in the grid. This processing option is used in conjunction with line type constants. If the Procurement Allow Service Units option is selected on the line type constants, then service quantity and service UOM can be used. The Quantity To Voucher and Service Quantity fields cannot be used together. Service quantity is a memo field and does not have any validation. Values are: Blank: Do not display. 1: Display.

Process

These processing options control the values that the system uses for the following information and processes:

- From and Thru status codes.

- Outgoing next status code.

- Entry of the quantity/amount.

- Tolerance checking.

- Storage of supplier analysis information.

- Quantity of vouchers allowed per order.

1. From Status Code and 2. Thru Status Code | Specify the beginning status code (40/AT) in a range of next status codes. The system uses the range when selecting orders to match. Note. This processing option does not apply when the system is selecting receipts to match.
3. Outgoing Receipt Next Status Code | Specify a code that represents the next status that the order moves to after a partial payment. When a partial payment exists, the system updates the status in the F4311 table for a two-way match and updates the status in the Purchase Order Receiver File table (F43121) for a three-way match so that the statuses in those two tables match the status that you enter.
4. Cancel Status Code | Specify the next status that the order moves to after the system cancels a voucher. When a voucher is canceled, the system updates the status in the F4311 table for a two-way match and updates the status in the F43121 table for a three-way match to ensure that the statuses match the status that you enter.
5. Quantity/Amount | Specify whether you want to manually enter the quantity information or whether the system automatically enters quantity information. Values are: Blank: Automatically load the quantity/amount. 1: Manually enter the quantity/amount to a voucher.
6. Tolerance | Specify whether the system checks to determine whether a detail line's quantity and amount exceed the tolerance percentage. To check tolerance, you can access the Purchasing Tolerance Rules program (P4322). You can enter a valid pay status or any of these values: Blank: The system does not check quantities and amounts to determine whether they exceed tolerance. 1: The system displays a warning. 2: The system displays an error message
7. Supplier Analysis | Specify whether the system to captures supplier analysis information. Values are: Blank: Does not capture supplier analysis information. 1: Records information such as item numbers, dates, and quantities for every purchase order in the F43090 table. To make supplier analysis most effective, enter 1 for this processing option and set the processing options for the Purchase Orders program (P4310) and the PO Receipts program (P4312) to capture the same information.
8. Orders Per Voucher | Specify whether to allow multiple orders per voucher. Values are: Blank: Allow multiple orders per voucher. 1: Allow only one order.
9. Branch/Plant Retrieval | Specify which business unit or project number the system uses to generate the general ledger bank account and the A/P trade account. Values are: Blank: Retrieves the business unit for each purchase order detail line. 1: Retrieves the business unit in the purchase order header record. 2: Retrieves the business unit from the JD Edwards EnterpriseOne Address Book system. 3: Retrieves the business unit from the header information in the Voucher Match program (P4314). 4: Retrieves the project number from the business unit for each purchase order detail line. 5: Retrieves the project number from the business unit in the purchase order header record. 6: Retrieves the project number from the business unit in the JD Edwards EnterpriseOne Address Book system. 7: Retrieves the project number from the business unit in the header information that is contained in the Voucher Match program (P4314). Note. The system uses the business unit that you specify for the voucher.
10. Direct Ship Integrity Cost Update | Specify whether to allow cost updates to the sales order when the order is a direct ship order. Values are: Blank: Do not allow. 1: Allow.
11. Lot Cost Update | Specify whether to update an item's lot cost (method 06) when matching an order at a variance. Values are: Blank: Do not update. 1: Update.
12. Threshold Warning | Specify whether the system displays a warning for voucher total gross amounts that exceed the threshold that has been set for the subcontractor/supplier. The threshold is stored in the Subcontractor Threshold table (F4355). Values are: Blank: Does not display. 1: Displays.
13. Threshold Pay Status Code | Specify the pay status code (00/PS) that the system assigns to lines on the voucher in which the total gross amount exceeds the threshold. The threshold is defined for the subcontractor or supplier in the Subcontractor Threshold program (P4355).
14. Dual UOM Costing | Specify whether the system displays the secondary unit cost field in addition to the current unit cost field. The secondary unit cost field appears if this processing option is turned on. Values are: Blank: Does not display the secondary unit cost field. 1: Displays the secondary unit cost field.

Summarization

These processing options control whether the system summarizes accounts payable (A/P) and general ledger information.

1. A/P | Specify whether to summarize A/P entries. Values are: Blank: Do not summarize. 1: Summarize.
2. G/L | Specify whether to summarize general ledger entries. Values are: Blank: Do not summarize. 1: Summarize.

New Order Line

These processing options control how new order detail lines are added to a purchase order when you are creating a voucher.

1. Order Line Entry | Specify whether to automatically create purchase order detail lines for lines that you add to a voucher. Values are: Blank: You cannot add lines to a voucher. 1: Do not create. 2: Create.
2. Line Type | Specify how the system processes lines on a transaction. The line type affects the JD Edwards EnterpriseOne systems with which the transaction interacts (General Accounting, Job Cost, Accounts Payable, Accounts Receivable, and Inventory Management). The line type also specifies the conditions for including a line on reports and in calculations. Some examples of values, which have been defined on the Line Type Constants Revisions form (P40205), are: J: Job cost, subcontracts, or purchasing to the general ledger. B: General ledger account and item number. N: Nonstock item. F: Freight. T: Text information. M: Miscellaneous charges and credits. This processing option applies only if you enter 2 for the Order Line Entry processing option, which also is on the New Order Lines tab. You can use only a line type that has an inventory interface of A, which validates the account number.
3. Last Status Code | Specify the beginning status, which is the first step in the order process. You must use a UDC (40/AT) that has been set up on the Order Activity Rules form for the order type and the line type that you are using.
4. Next Status Code | Specify the next step in the order process. You must use a UDC (40/AT) that has been set up on the Order Activity Rules form for the order type and the line type that you are using. The override status is another allowed step in the process.

Retainage

These processing options control whether the system uses the retainage percentage or the retainage amount as a default value in the Voucher Match program (P4314), and also whether the system applies taxes to the retained or vouchered amount.

1. Default | Specify whether to automatically load the retainage percentage or amount from the order header. Values are: Blank: Do not load. 1: Automatically load.
2. Taxes | Use this processing option only for tax types C and V to specify whether the system applies taxes to the retained amount during the voucher match process or when releasing retained amounts. Values are: Blank: Applies taxes to the vouchered amount, including the retained amount. 1: Does not apply taxes to retained amounts.

Logs

These processing options control whether the system displays a warning message when outstanding logs exist and also indicate which pay status code the system should use for a voucher when outstanding logs exist.

1. Warning Message | Specify whether the system displays an outstanding log detail warning message and when it displays the message. Values are: Blank: Do not display; 1 and 2: Displays.
2. Pay Status Code | Specify the pay status code (00/PS) that the system uses as a default value for the voucher when an outstanding log exists. Typically, you use a pay status code that indicates that the pay item is on hold.

Currency

These processing options control which date the system uses as the effective date and also whether the exchange rate can be changed.

1. Effective Date | Specify which date to use as the effective date. Values are: Blank: Use today's date as the effective date. 1: Use the general ledger date. 2: Use the invoice date.
2. Protect Rule | Specify whether you can change the exchange rate. Values are: Blank: You can change the exchange rate. 1: You cannot change the exchange rate.

Flex Accounts

This processing option controls whether you are working with flexible accounting.

1. Flex Accounting | Specify whether to activate flexible accounting. Activate flexible accounting if you are using the JD Edwards EnterpriseOne Advanced Cost Accounting system, or if you are working with flexible sales accounting. Values are: Blank: Do not activate. 1: Activate.

Versions

These processing options enable you to enter the version for each application. If you leave any of these processing options blank, the system uses version ZJDE0001.

1. Order Entry (P4310) | Specify the version that the system uses when you are using the Order Entry program. When you select a version, review the version's processing options to ensure that the version meets the needs.
2. AP Master Business Function (P0400047) | Specify the versions that the system uses when you process accounts payable transactions. You can review versions for this program in the interactive versions list only. When you select a version, review the version's processing options to ensure that the version meets the needs.
3. GL Master Business Function (P0900049) | Specify the version that the system uses when you are using the JD Edwards EnterpriseOne General Accounting system. You can review versions for this program in the interactive versions list only. When you select a version, review the version's processing options to ensure that the version meets the needs.
4. Open Receipts Inquiry (P43214) | Specify the version that the system uses when you are using the Open Receipts Inquiry program. When you select a version, review the version's processing options to ensure that the version meets the needs.
5. Stand Alone Landed Cost (P43214) | Specify the version that the system uses when you are using the Standalone Landed Cost program. When you select a version, review the version's processing options to ensure that the version meets the needs.
6. Freight Audit History (P4981) | Specify which version of the Voucher Match program (P4314) the system uses for matching freight.
7. Supplier Ledger Inquiry (P0411) | Specify the version that the system uses when you use the Supplier Ledger Inquiry program.
8. Purchase Order Logs (P4305) | Specify the version that the system uses when you use the Logs Entry program (P4305). The system uses this version of the P4305 program if UDC 40/VF is activated for 04.
9. Freight Distribution (P43147) | Specify the version that the system uses when you use the Freight Distribution program (P43147).

Workflow

1. Notify Amount Changes and 2. Notify Quantity Changes | Specify the person who receives notification. Values are: Blank: Do not send any notification emails. 1: Purchase order originator. 2: Project manager. 3: Buyer. 4: Originator, buyer, and project manager.

Progress Payment

Use these processing options to determine how the system processes progress payments in the JD Edwards EnterpriseOne Subcontract Management system.

1. Interface | Specify whether to activate the progress payment interface. Values are: Blank: Supplier/Subcontractor Ledger Inquiry. 1: Progress Payment. Note. If you are using standard voucher match, this processing option should not be set.
2. Match Type Default | Specify the default for the match type. You must enter a value that has been set up in UDC 43B/VW.
3. Option Default | Specify the default progress payment option to display in the detail area of the Progress Payments/Voucher Match form when you select lines to pay from the Work With Contracts form. Values are: Blank: Bypass payment of line. 1: Match quantity and amount.
4. Extended Amount | Specify whether extended amount is calculated if quantity is changed. Blank: Extended amount is not calculated. 1: Extended amount is calculated.
5. Batch | Specify whether to use the same batch number. Values are: Blank: Do not use. 1: Use.
6. Activate Type of Payment and Current Payment Fields | Specify whether to activate the payment functionality type and shows the payment type fields, Type of Payment, Current Payment Domestic, and Current Payment Foreign in the Supplier Self-Service applications. Values are: Blank: Do not activate. 1: Activate.
7. Type of Payment Options | Specify the type of payment option. Use this processing option when the Activate Type of Payment and Current Payment Fields processing option is activated. Values are: Blank: Actual Amount. 1: Cumulative Percentage 2: Cumulative Amount If a payment is already made, the payment amount is subtracted and the remainder is paid. For example, if you use option 1, and 100 out of 2000 USD is already paid, and you put 20 percent in progress payment, the program pays off 20 percent of 2000 USD, which is 400 USD. Because 100 USD is already paid, it pays the remaining 300 USD. Use option 2 similarly, but specify an amount, not a percentage.
8. Prevent Payment of Paid Lines | Specify whether to allow payment of more than 100 percent on a paid line. This applies to nonstock lines only. Values are: Blank: Prevent payment. 1: Allow payment.

Redistribution

Specify how the system processes logged recurring vouchers after redistribution.

1. Calculate Last Chance Variance for the voucher after it has been redistributed | Specify whether the system records variance amounts in the general ledger for amount variances. The system records these variances by using DMAAI 4330. Values are: Blank: Does not record. 1: Does record.

Freight Distribution

This processing option enables you to determine how the system processes lines on a freight distribution transaction.

1. Freight Distribution Line Type | Specify how the system processes lines on a transaction. The line type affects the systems with which the transaction interacts (JD Edwards EnterpriseOne General Accounting, JD Edwards EnterpriseOne Job Cost, JD Edwards EnterpriseOne Accounts Payable, JD Edwards EnterpriseOne Accounts Receivable, and JD Edwards EnterpriseOne Inventory Management systems). The line type also specifies the conditions for including a line on reports and in calculations. You can use only a line type that has an inventory interface of A, which validates the account number.

#### Setting Processing Options for A/P Standard Voucher Entry (P0411)

Processing options enable you to specify the default processing for programs and reports.

Display

These processing options specify how the system groups and displays data in the A/P Standard Voucher Entry program.

1. Recurring Vouchers | Specify the default voucher type to display on the Supplier Ledger Inquiry form. Values are: Blank: Display all voucher types. 1: Display only recurring vouchers. When you enter 1, the program selects the Recurring Vouchers check box.
2. Summarized Vouchers | Specify that vouchers appear with multiple pay items in a summarized, single pay item format. Values are: Blank: All vouchers appear (no default criteria). 1: Only summarized vouchers appear. When you enter 1, the program selects the Summarize option on the Supplier Ledger Inquiry form.
3. Display Domestic and Foreign | Specify whether to display both domestic and foreign amount fields in the detail areas of the Enter Voucher-Payment Information and MultiCompany-Single Supplier forms for voucher entry. Values are: Blank: Do not display. 1: Display domestic and foreign amount fields. If you select 1, the following fields appear on the form: Domestic Gross Domestic Discount Available Domestic Taxable Domestic Tax Domestic Non-Taxable Foreign Gross Amount Foreign Discount Available Foreign Taxable Foreign Tax Foreign Non-Taxable

Currency

These processing options specify whether to display amounts in a currency other than the currency in which the amounts are stored on the system. Amounts displayed in a different currency are hypothetical only; they are not saved to the system when you exit the A/P Standard Voucher Entry program.

1. As If Currency | Specify that you want to view domestic or foreign amounts in a currency other than the currency in which the amounts were originally entered. Specify the currency code in which to view the as if currency. For example, to view domestic or foreign U.S. Dollar (USD) amounts in the euro, specify EUR. If this processing option is left blank, the system does not display the As If Currency Code field in the header, nor does it display the As If Amount and As If Open Amount columns in the grid area. Note. As if currency amounts are stored in temporary memory, and are not written to a table.
2. As Of Date | Specify an as of date for the As If Currency processing option. This system uses this date to retrieve the exchange rate from the F0015 table. If this processing option is left blank, the system uses the system date if you specify a currency code in the As If Currency processing option. Note. A valid exchange rate between the domestic or foreign currency and the as if currency must exist in the F0015 table, based on the as of date.

Manual Payments

These processing options control the creation of manual payments. Use these processing options only on the version of the A/P Standard Voucher Entry program that you use for manual payments without voucher match.

1. Manual Payment Creation | Specify whether to generate manual payments instead of automatic payments. This option applies only to manual payments without voucher match and is not available in multicompany and multivoucher modes. Values are: Blank: No payment information appears. 1: Generate manual payments (without voucher match). Note. If you enter 1, click Add on the Supplier Ledger Inquiry form. Then complete the Enter Voucher - Payment Information form, and click OK. Complete the Payment Information form for manual payment processing.
2. Duplicate Payments | Specify the type of message that appears when you attempt to generate or edit a duplicate payment number. Use this option only if you enter 1 for the Manual Payment Creation processing option. The message indicates that you have used that payment number previously. Values are: Blank: Error 1: Warning
3. Automatic Payment Number Assignment | Specify whether the program automatically assigns payment numbers to manual payments based on the bank account's next number. Values are: Blank: Manually assign payment numbers (default). 1: Assigns payment numbers.

Purchasing

This processing option specifies how the program processes vouchers that contain subcontract order information.

1. Voucher Delete | Specify the type of message that appears when you attempt to delete vouchers that contain purchase order information. For example, indicate what the system does when you attempt to delete a voucher that contains a purchase order from the Supplier Ledger Inquiry form. Values are: Blank: Do not permit editing (default). 1: Warning 2: Error If a conflict exists between this processing option and the Voucher Message processing option for the Voucher Entry MBF, the value set here overrides the value set in the Voucher Message processing option.

Voucher Match

These processing options enable you to process matched vouchers from the JD Edwards EnterpriseOne Procurement system rather than standard vouchers.

1. Match Processing | Specify that you want to change the default voucher type from standard vouchers to matched vouchers. If you choose to run the voucher match program, you can select either the three-way voucher match or the two-way voucher match. Values are: Blank: Run Standard Voucher Entry (P0411). 1: Run Voucher Match (P4314) in Procurement. Alternatively, on the Non-Stock PO Processing menu (G43B11), select one of these: Receive & Voucher POs. Match Voucher to Open Receipt. The Voucher Match Program (P4314) does not access the MBF processing options (P0400047). Therefore, the MBF processing option settings do not affect Voucher Match processing. You might want to reverse a voucher. For example, you reverse a voucher when you return the items for which you created the voucher. If the voucher has been posted, the system reverses the corresponding journal entries. If the voucher has not been posted, the system deletes the entries. Note. Do not delete a voucher in the JD Edwards EnterpriseOne Accounts Payable system if you created the voucher in the JD Edwards EnterpriseOne Procurement system. The voucher should be deleted in the JD Edwards EnterpriseOne Procurement system.
2. Voucher Match Version | Specify that you want to accept the default voucher match version, or enter a specific version number for the Voucher Match program (P4314) in the JD Edwards EnterpriseOne Procurement system. You must complete this processing option if you enter 1 in the Match processing option. If this processing option is left blank, the system uses ZJDE0001.

Multi Company

This processing option enables you to process vouchers for multiple companies rather than standard vouchers.

1. Multi-Company Single Supplier | Specify whether to process vouchers that represent expenses for multiple internal companies. These multicompany voucher expenses are distributed to different general ledger and offset bank accounts, but to the same supplier. Values are: Blank: Enter a standard voucher. 1: Enter a multicompany single supplier voucher. Note. The manual payment function is not available for this type of voucher processing. Alternatively, access this processing option by selecting Multi-Company Single Supplier from the Other Voucher Entry Methods menu (G04111).

Multi Vouchers

This processing option enables you to enter multiple vouchers rather than standard vouchers.

1. Multiple Vouchers | Specify whether the system enables you to quickly enter multiple vouchers for one or more suppliers. Unlike the standard voucher entry method, which is a two-step process, the multiple voucher entry methods are a single-step process. Values are: Blank: Enter a standard voucher. 1: Enter multiple vouchers with a single supplier. 2: Enter multiple vouchers with multiple suppliers. Note. You can use the multiple-voucher entry methods to add vouchers only. To change, delete, or void them, you must use the standard voucher entry method. Also, the manual payment function is not available for this type of voucher processing. For additional information, as well as other limitations to multiple voucher entry, consult the documentation or online help for entering multiple vouchers. Alternatively, access this processing option by selecting either Multi Voucher - Single Supplier or Multi Voucher - Multi Supplier from the Other Voucher Entry Methods menu (G04111).

Logging

This processing option specifies whether you can enter logged vouchers rather than standard vouchers.

1. Voucher Logging | Specify whether to enter a voucher before you assign it a general ledger account. At a later time, you can redistribute the voucher to the correct general ledger accounts. You can specify a default general ledger account for preliminary distribution, as well as a suspense trade account for logged vouchers. To do this, use AAI PP (Preliminary Distribution for Voucher Logging) and PQ (Suspense A/P Trade Account for Voucher Logging). To use AAI PQ, select the Use Suspense Account option in the Company Names and Numbers program (P0010). From the Organization & Account menu (G09411), select Company Names and Numbers. Values are: Blank: Enter a standard voucher (default). 1: Enter a logged voucher. When you enter 1 for this processing option, the program adds a selected Logged option to the Supplier Ledger Inquiry form, and the program ignores the selections that you make for prepayments. Alternatively, from the Other Voucher Entry Methods menu (G04111), select Voucher Logging Entry. Note. This processing option functions in conjunction with the Voucher Logging processing option on the Logging tab of Voucher Entry MBF (P0400047). You must enter 1 for both Voucher Logging processing options for the system to process logged vouchers. If the Voucher Logging processing options for A/P Standard Voucher Entry and Voucher Entry MBF are set for logged vouchers, the system ignores the processing options on the Prepayments tab of A/P Standard Voucher Entry (P0411).
2. G/L Date | Specify whether to use the system date as the default general ledger date for a logged voucher. Values are: Blank: Enter date manually. 1: Use the system date as the default general ledger date. Note. If you enter 1 for this processing option, you cannot override the date.

Prepayments

These processing options specify how the program processes prepayments. Use prepayments to pay for goods or services before you receive an invoice.

1. G/L Offset Account | Specify that you want to set up AAIs (item PCxxxx) to predefine classes of automatic offset accounts for accounts. For example, you can assign general ledger offsets as: Blank: Trade Accounts Payable 4110: Trade Accounts Payable RETN: Retainage Payable 4120: Retainage Payable OTHR: Other Accounts Payable 4230: Other Accounts Payable PREP: Prepayment A/P Trade Account 4111: Prepayment A/P Trade Account Enter the code for the general ledger offset account that the system uses to create prepayment pay items. You must enter a value to enable automatic creation of prepayment pay items. If you leave this processing option blank (default), the system uses the Standard Voucher Entry program.
2. G/L Distribution Account | Specify the general ledger distribution account that the system uses for creating prepayment pay items. You can use one of these formats for account numbers: Structured account (business unit.object.subsidiary). 25-digit unstructured number. 8-digit short account ID number. Speed code. The first character of the account indicates the format of the account number. You define the account format in the General Accounting Constants program (P000909). Note. Use this processing option only if you enter a value in the General Ledger Offset Account processing option.
3. Pay Status Code | Specify the default pay status code for prepayments. The pay status code is a UDC (00/PS) that indicates the current payment status of a voucher. Valid codes are: P: The voucher is paid in full. A: The voucher is approved for payment, but not yet paid. This applies to vouchers and automatic cash applications. H: The voucher is on hold pending approval. R: Retainage. %: Withholding applies to the voucher. ?: Other codes. All other codes indicate reasons that payment is being withheld. Note. The JD Edwards EnterpriseOne Accounts Payable system does not print payments for any codes other than the codes provided in this valid codes list. Note. Use this processing option only if you enter a value in the general ledger Offset Account processing option.
4. Number of Days | Specify the number of days to add to the due date of the negative prepayment pay items.
5. Tax Area | Specify whether the program displays the Prepayment Tax form for prepayments. You use the Prepayment Tax form to assign tax codes to negative pay items that are different from the tax codes for the corresponding positive pay items. This is necessary, for example, when tax laws treat positive pay items and negative pay items differently. Otherwise, the system automatically generates a negative pay item for each positive pay item, assigning each negative pay item the same tax area code and tax explanation code as its corresponding positive pay item. If you specify a tax area code and tax explanation code on the Prepayment Tax form, the new codes appear on all negative pay items, overriding the original tax area codes and tax explanation codes on the positive pay items. For example, if several positive pay items exist, each of which specify a different tax area code and tax explanation code, but you specify a particular tax area code and tax explanation code on the Prepayment Tax form, the system assigns the tax area code and tax explanation code that you specify on the Prepayment Tax form to all negative pay items. Values are: Blank: Do not display 1: Display Note. Use this processing option only if you enter a value in the general ledger Offset Account processing option.
6. Prepayment Tax Area Code | Specify a default code that identifies a tax or geographic area that has common tax rates and tax distribution. The system uses this code to properly calculate the tax amount. The tax rate/area must be defined to include the tax authorities (for example, state, county, city, rapid transit district, or province), and their rates. To be valid, a code must be set up in the Tax Rate/Area table (F4008). Typically, U.S. sales and use taxes require multiple tax authorities per tax rate/area, whereas VAT requires only one tax. Note. Use this processing option only if you enter 1 for the Tax Area processing option.
7. Prepayment Tax Explanation Code | Specify a default tax explanation code for transactions with a certain supplier. This tax explanation code is a UDC (00/EX) that controls how a tax is assessed and distributed to the general ledger revenue and expense accounts. Note. Use this processing option only if you enter 1 for the Tax Area processing option.

Versions

These processing options specify whether to override the default Master Business Function version.

1. Voucher Master Business Function Version | Specify a version number to override Standard Voucher Entry processing (version ZJDE0001 for application P0400047). If this processing option is left blank, the system uses ZJDE0001.
2. Journal Entry Master Business Function | Specify a version number to override Journal Entry processing (version ZJDE0001 for application P0900049). If this processing option is left blank, the system uses ZJDE0001.
3. Pay When Paid Manual Link Version | Specify a version number for the Pay When Paid Manual Link application (version ZJDE0001 for application P03B470). If this processing option is left blank, the system uses ZJDE0001.
4. Netting (P03B455) Version | Specify the version of Netting (P03B455) to use. If this processing option is left blank, the system uses ZJDE0002.

Note. Only persons responsible for system-wide setup should change this version number.

Process

These processing options restrict changes to vouchers when you use Subcontractor Ledger Inquiry.

1. Voucher Entry Mode | Specify whether to allow changes to vouchers after you select them from the Supplier Ledger Inquiry form. Values are: Blank: Allow changes. 1: Do not allow changes. The system restricts you to inquiries of existing vouchers that you select from the Supplier Ledger Inquiry form.
2. Supplier Self Service Mode | Specify whether to activate the Supplier Self-Service function for use in Java/HTML. The Self-Service function enables suppliers to view their own vouchers and payments. Values are: Blank: Do not activate. 1: Activate.

Edits

This processing option defines whether the fixed asset ID is required when you enter a voucher.

1. Fixed Asset ID | Specify whether to require an asset ID if an account is in the AAI asset account range. Values are: Blank: Do not require. 1: Require.

Pay When Paid

1. Pay When Paid Voucher | Specify whether to enter a Pay When Paid Voucher. Values are: Blank: Enter a standard voucher (default). 1: Enter a Pay When Paid voucher. When you enter 1 for this processing option, the program flags the voucher as a Pay When Paid voucher. Note. This processing option functions in conjunction with the Pay When Paid Pay Status Code processing option on the Defaults tab of Voucher Entry MBF (P0400047). You must enter the pay status to be associated with Pay When Paid vouchers.

#### Setting Processing Options for Freight Distribution (P43147)

Processing options enable you to specify the default processing for programs and reports.

Display

1. Account Number | Specify how the system displays the account number on the Freight Distribution Revisions form. Values are: Blank: Displays the account number as one field. 1: Displays the account number in three individual fields. These fields are Cost Center, Obj Acct (object account), and Sub (subsidiary).

Process

These processing options enable you to control the values that the system uses for information and processes.

1. Account | Specify whether to use financial AAI PCFRTD. The system uses the values in the Or Ty (order type) and Cost Center fields from the line to determine the freight distribution account. Values are: Blank: Use the account on the line. 1: Use the financial AAI to determine the account.
2. Default Distribution | Specify the initial distribution of the freight amount. Values are: Blank: Do not perform any default distribution. 1: Distribute a proportion of the freight based upon the amount of the line against the amount of the entire voucher. 2: Distribute a proportion of the freight equally to each voucher line.

#### Selecting Records to Match to a Voucher

Access the Voucher Match form.

To select records to match to a voucher:

1. Complete the Invoice Num, Invoice Date, and G/L Date fields to enter record information.

   You can have the system enter the gross amount and tax for you based on the detail lines or receipt records that you choose.

2. Complete the OP field.

   For subcontract progress payments, if you have set the Option Default processing option on the Progress Payments tab, the system changes this field by default to a value of 1, match quantity and amount.

3. Complete the optional fields for receipt records to reflect the invoice, as necessary.

4. Click OK.

5. To review the resulting voucher, on Subcontractor Ledger Inquiry, click Find, select the voucher, and click Select.

Service Quantity | Enter a value that represents the number of units committed for a nonstock item or service line on a purchase order. This field is a field by itself and has no relation with unit cost to calculate the extended cost. If service units are used, the Quantity Ordered field on the Order Detail form in the JD Edwards EnterpriseOne Procurement system cannot be used.
Service UoM (service unit of measure) | Enter a value from user-defined code 00/UM that specifies the unit of measure for the quantity committed for a nonstock item or service line on a purchase order.

#### Selecting Order Detail Lines to Match to a Voucher

Access the Voucher Match form.

To select order detail lines to match to a voucher:

1. To enter record information, complete the Supplier, Cost Center, Invoice Num, Invoice Date, G/L Date, and Co. fields.

   You can have the system enter the gross amount and tax for you based on the detail lines that you select if you match to the invoice.

2. Select Orders To Match from the Form menu.

3. On the Select Orders To Match form, locate and select order detail lines and click OK.

   The system returns the lines that you selected to the Voucher Match form.

4. On the Voucher Match form, complete the O P field.

   The option that you enter determines whether the system leaves the balance of the line open (option 1), closes the balance (option 7), or cancels the line entirely (option 9).

5. Complete the optional fields for order detail lines, as necessary, to reflect the invoice.

6. Click OK.

7. To review the resulting voucher, on the Subcontractor Ledger Inquiry form, click Find, select the voucher, and then click Select.

#### Selecting Order Detail Lines for Freight Vouchering

Access the Freight Distribution Revisions form.

You enter freight information that is specific to each detail line on the form.

Distribute By | Enter the freight distribution type. Values are: 1: Distribute by amount 2: Distribute by percentage
Freight Distribution Percentage | Displays the freight distribution percentage that the system uses to calculate the amount that the system then uses to create the general ledger record during voucher match.
Freight Distribution Amount | Enter the freight distribution amount that the system uses to create the general ledger record during voucher match.
Freight Distribution Business Unit | Displays the business unit from the general ledger account number.
Freight Distribution Object Account | Displays the portion of a general ledger account that refers to the division of the cost code (for example, labor, materials, and equipment) into subcategories. For example, you can divide the cost code for labor into regular time, premium time, and burden. Note. If you use a flexible chart of accounts and the object account is set to six digits, Oracle recommends that you use all six digits. For example, entering 000456 is not the same as entering 456 because if you enter 456 the system enters three blank spaces to fill a six-digit object.
Freight Distribution Subsidiary | Displays a subset of an object account. Subsidiary accounts include detailed records of the accounting activity for an object account.
Freight Distribution Account Number | Enter the freight distribution account number. The system writes a general ledger record to this account for freight distribution during voucher match.
Freight Distribution Subledger | Enter a code that identifies a detailed, auxiliary account within a general ledger account. A subledger can be an equipment item number or an address book number. If you enter a subledger, you must also specify the subledger type.
Freight Distribution Subledger Type | Enter a value from UDC 00/ST that the system uses with the Freight Distribution Subledger field to identify the subledger type and how the system performs subledger editing. On the User Defined Codes form, the second line of the description controls how the system performs editing. This is either hard-coded or user-defined. Values include: A: Alphanumeric field, do not edit. N: Numeric field, right-justify and zero fill. C: Alphanumeric field, right-justify and blank fill.

You can select one of the following options from the Form menu to apply to all detail lines on the form:

Clear Distributions | Select to zero any existing freight distribution for this freight distribution line. Click Find to refresh the grid.
Amount Default | Select to override any existing freight distribution for this freight distribution line. The voucher line amounts are totaled and the freight amount is distributed to each voucher line based upon the ratio of the voucher line amount and the total voucher amount. Click Find to refresh the grid. For example, the freight amount is 200 USD. Two voucher lines are in the grid. The first line is for 1000 USD and the second line is for 3000 USD. The system distributes 25% or 50 USD to line one and 75% or 150 USD to line two. Note. The Amount Default option functions the same as the Default Distribution processing option on the Process tab of the P43147 program when the value is set to 1 to distribute by amount.
Line Default | Select to override any existing freight distribution for this freight distribution line. The freight amount is distributed to each voucher line evenly. Click Find to refresh the grid. For example, the freight amount is 200 USD. Four voucher lines are in the grid. The system will distribute 50 USD to each line. Note. The Line Default option functions the same as the Default Distribution processing option on the Process tab of the P43147 program when the value is set to 2 to distribute each line equally.

### Processing Retainage

This section provides an overview of retainage, lists prerequisites, and discusses how to:

- Enter a voucher with retainage.

- Enter a voucher to release retainage.

See Also

Creating Multiple Vouchers from Receipt Records

Logging Invoices Before Receiving Goods

#### Understanding Retainage

You can withhold a portion of the gross payment as retainage. Retainage is the percentage of a committed amount that is held until a specified date. For example, you pay the retained amount after the completion of the contract, service, or receipt of all items on an order. If you create a voucher for 100 with retainage of 10 percent, the actual payment is 90, with 10 held as retainage. You release retainage by creating progress payments for the amount that you want to release.

Note. You cannot release retainage and the progress payment at the same time.

For example, you issue a purchase order for 1000 against a billable job account. You receive an invoice from the vendor which may or may not indicate the retainage amount. You create a voucher for 1000 with retainage of 10 percent. Thus, the actual payment will be 900, with 100 held as retainage. The 1000 creates a debit to the billable job account per the purchase order with a 900 credit to the A/P trade account. The retainage of 100 creates a credit to the A/P retainage account. This fully relieves the 1000 commitment.

When appropriate, you release retainage either with or without a subsequent invoice from the vendor. In either event, the initiation of retention release is a manual process. You release retainage by entering a payment voucher for the amount that you want to release. In this example, the payment of 100 creates a credit to the A/P trade account and also creates a 100 debit to the A/P retainage account.

This diagram illustrates the T account changes for a 1000 line with 10 percent retainage:

T account changes for retainage example

Note. The terms voucher and progress payment have the same meaning in the JD Edwards EnterpriseOne Subcontract Management system and the JD Edwards EnterpriseOne Procurement system.

You can create a voucher with retainage that is applied to the entire voucher, or you can apply retainage by line item of the voucher.

Use the Taxes processing option to defer tax on retainage. If you activate the Taxes processing option and you use a tax type of C or V, the system calculates amounts differently. It subtracts retainage from the original taxable amount and recalculates new amounts.

You release retainage by entering a payment voucher for the amount that you want to release. Retainage is also called a holdback.

A partial release of retainage indicates that an unpaid amount of retainage exists. A final release of retainage indicates that no retainage remains to be paid. You can release retainage for individual vouchers or for groups of vouchers.

Note. In some industries, subcontract retention may be called retainage. Thus, the terms retainage and retention can be used interchangeably.

Subcontract Retention

Subcontract retention is used in a commercial cost-reimbursable project-related environment. Subcontract retention is a percentage of a committed amount that is held until a specified date after the order is complete. Retention processing applies to on-going projects and applies only to services lines. Retention is not applicable to inventory-based purchase order lines where the full cost of the product is due upon receipt of the product.

Retention typically follows the same rules as the client contract rules. The accounting requirement when you are vouchering is to distribute the net amount to a billable account on the job and the retained amount to a nonbillable account on the job. The retained amount must be charged to a nonbillable account, and only the billable amount is charged to a billable account and submitted for payment. Note that the vendor may or may not indicate retainage on the invoice.

For example, you issue a purchase order for 1000 against a billable job account. You receive an invoice from the vendor that may or may not indicate the retainage amount. You create a voucher for 1000 with retainage of 10 percent. Thus, the actual payment will be 900, with 100 held as retainage. The payment of 900 creates a debit to the billable job account per the purchase order (credit to the A/P trade account). The retainage of 100 creates a debit to a nonbillable account on the job (credit to the A/P retainage account). This fully relieves the 1000 commitment.

When appropriate, you release retainage either with or without a subsequent invoice from the vendor. In either event, the initiation of retention release is a manual process. You release retainage by entering a payment voucher for the amount that you want to release. In this example, the payment of 100 creates a debit to the billable job account per the purchase order (credit to the A/P trade account) and also creates a 100 credit to a nonbillable account on the job (debit to the A/P retainage account).

This diagram illustrates the T account changes for a 10000 line with 10 percent retainage:

T account changes for nonbillable retainage example

The commitment is not affected because it was already relieved. To facilitate entry of the initial voucher, indicate that retention applies to the purchase order when entering the voucher.

In the JD Edwards EnterpriseOne system, you use retainage functionality to automate the recording of retention to nonbillable accounts for transactions with an inventory interface of A and B only. The system uses financial automatic accounting instruction (AAI) PCNBRT for retainage processing during voucher match. To enable the retention functionality in the JD Edwards EnterpriseOne system, you must:

1. Select the Non-Billable Retainage option on the Line Type Constants Revisions form (W40205B).

   New journal ledger entries are created if this subcontract retention option is selected.

2. Perform two-way voucher match.

   The system supports multiple partial matches.

   Note. If you want to perform three-way voucher match, you must select the Expense At Voucher option on the Line Type Constants Revisions form (W40205B).

3. Ensure that the retainage amount is not zero.

Before entering an order that includes retention, select the Display Retainage Indicator processing option on the Display tab of the Subcontract Order Entry program (P4310). When you enter an order that has retainage, select the Retainage Indicator check box on the order header form. This field notifies the A/P clerk during the voucher match process to double-check the invoice from the supplier to see if there was an amount retained on the invoice. The Retainage Indicator check box can be used with or without the Retainage Percentage field.

Note. When you are using the Purchase Order Generator (P43032), Generate POs from Requisitions/Blanket Order Release (P43060), and Quote Order Release (P43360) programs to release blanket, requisition, and quote orders, the order that is generated contains the retainage indicator value. The value of the Retainage Indicator field is brought over from the source order irrespective of the processing option setting.

Note. The system does not support retention in Purchase Order Workbench (P43101), sourcing, electronic data interchange (EDI), XPI, transfer orders, direct ship orders, re-cost voucher, and freight to match.

You can display the Retainage Indicator field in the detail grid on the Voucher Match form by setting the Display Retainage Indicator processing option on the Display tab of the Voucher Match program (P4314). The system retrieves the retainage indicator setting from the order header. You also set the processing options on the Retainage tab of the P4314 program.

When performing voucher match, you can relieve commitments to billable and nonbillable accounts. The setting of the Non-Billable Retainage option on the Line Type Constants Revisions form determines whether the system uses the new nonbillable automatic accounting instruction (AAI) for retainage. Select this option to specify that the system use the financial AAI nonbillable retainage (PCNBRT) for retainage processing during voucher match. If the Non-Billable Retainage option is not selected, then the system uses the previous functionality for expensing retainage.

You select the Voucher Match Variance Account option in the Line Type Constants (P40205) program to indicate to which account the system books a variance. A variance that is generated during voucher match can be booked to a variance account or to the expense account for the order detail line.

For three-way voucher match, select both the Non-Billable Retainage and Expense at Voucher options to use a nonbillable expense AAI.

You can release retainage and create a voucher at the same time. The Retainage Indicator field that appears on the form signals the accounts payable clerk to verify whether retainage occurred on the invoice and whether it should be applied to the voucher. The Retainage Indicator field is independent of the Retainage % field, and the system will not require a retainage percentage if the Retainage Indicator option is selected. Thus, the system does not perform any functionality based on the Retainage Indicator field.

The commitment is relieved when you are posting a voucher with nonbillable retainage. The system retrieves the nonbillable received not vouchered (RNV) amount from the Purchase Order Detail Non-Billable table (F4317) and adds it to the billable RNV amount (input value from the General Ledger Post program (R09801) when you are posting a voucher with nonbillable retainage. Thus, the system processes voucher match with nonbillable retainage and nonbillable retainage release.

During voucher match, the system calculates the billable and nonbillable general ledger amounts, both domestic and foreign amounts.

The system uses the following calculations during voucher match:

- (Billable Amount) = (GL Amount) × (1 − (Retainage Percent))

- (Non-Billable Amount) = (GL Amount) − (Billable Amount)

The retainage to release amount is computed based on the PO Detail (F4311) level and proportioned to the PO Non-Billable (F4317) level based on percentage. The system uses the following calculations during release retainage:

- (Released Amount) = (F4317.NonBillableAmount) × (Released Percent)

- (Retained Amount) = (F4317.NonBillableAmount) − (Relased Amount)

The system also calculates the released percentage when releasing nonbillable retainage. This percentage is required for partial release and rounding issues. The system uses the following calculations for released percentage:

- (Released Percentage) − (Domestic) = (F43121T.RETA) ÷ (F4311T.RETA)

- (Released Percentage) − (Foreign) = (F43121T.REFA) ÷ (F4311T.REFA)

The nonbillable amount is always equal to the retained amount unless you are using B, C, and V tax types. The nonbillable amount is the sum of one or more future billable amounts.

When you close an order, the system does not provide a reminder or force payment of any retention.

If you reverse a voucher, then the accounting entries are reversed as they were entered. The system performs the following transactions:

- Updates the Purchase Order Receiver File table (F43121).

- Reverses F4317 records to update the nonbillable amount.

- Reverses Purchase Order Receiver Non-Billable table (F43127) records.

  - Deletes F43127 records that have a match type 3 (reversed by voucher match application).

  - Updates F43127 records that have match types of 2 (created by voucher match application) and 3 (reversed by voucher match application).

See Order Line Types.

See AAI Tables for the Financial System.

See Subcontract Retention.

See Subcontract Retention.

See Setting Processing Options for Voucher Match (P4314).

#### Prerequisites

Before you complete the tasks in this section, set the processing options on the Voucher Match program (P4314) to apply taxes to retainage.

To enable the subcontract retention functionality in the JD Edwards EnterpriseOne system, you must:

1. Select the Non-Billable Retainage option on the Line Type Constants Revisions form (W40205B).

2. Set up financial AAI PCNBRT.

3. Set the processing options on the Purchase Orders program.

4. Set processing options on the Voucher Match program.

5. Perform two-way voucher match.

   Note. If you want to perform three-way voucher match, you must select the Expense At Voucher option on the Line Type Constants Revisions form (W40205B).

6. Ensure that the retainage amount is not zero.

#### Forms Used to Process Retainage

Form Name | FormID | Navigation | Usage
Voucher Match | W4314A | Subcontract Processing (G43D11), Progress Payments On the Work With Contracts form, specify contracts to pay as match type, select the record that you want to match with a voucher, and click Select. | Enter a voucher with retainage. Enter a voucher to release retainage. View supplier classification codes on the Supplier Classification Codes tab.
Select Orders To Match | W4314C | On the Voucher Match form, select Orders To Match from the Form menu. | Select order detail lines to match to a voucher.

#### Entering a Voucher with Retainage

Access the Voucher Match form.

Complete the steps for selecting records to match to a voucher or selecting order detail lines to match to a voucher, changing the value in the Retained Amount field for order detail lines, as necessary.

Retained Amount | Enter the total amount that is held back on the contract amount. The amount retained cannot be less than zero or greater than the amount to voucher.

#### Entering a Voucher to Release Retainage

Access the Voucher Match form.

To enter a voucher to release retainage:

1. Complete these fields to enter record information:

   - Invoice Num.

   - Invoice Date

   - G/L Date

     You can have the system enter the gross amount and tax for you based on the detail lines or receipt records that you select.

2. On the Voucher Match form, complete the OP field.

   For subcontract progress payments, if you have set the Option Default processing option on the Progress Payments tab, the system changes this field by default to a value of 1, match quantity and amount.

3. Complete these optional fields for receipt records to reflect the invoice, as necessary:

   - Amount To Voucher

   - Quantity To Voucher

   - Retained Amount

   - Percentage Retained

   - Tax Y/N

   - Tax Area

   - Tax Expl

   - Tax

   - Discount Amt

4. Click OK.

5. To review the resulting voucher, on the Subcontractor Ledger Inquiry form, click Find, select the voucher, and click Select.