Using holdback

The holdback is a percentage amount withheld by the customer on payments. The customer pays the holdback amount after the project activities are performed satisfactorily. Holdback can be used for the following invoice types in Project:

Installment
Progress Invoice
Unit Rate
Cost-Plus
Extensions

You cannot use a holdback for advance payment requests.

The Holdback (tppin4140m000) session maintains and releases holdback amounts for invoicing. You can print holdback records in the Print Holdback (tppin4440m000) session.

Example

Project X uses Progress Invoicing. You apply holdback at 10% using the Contract Lines (tpctm1110m000) session. The project has two elements, 100 and 200, with the following specifications:

-	Sales Price	Holdback	Progress
Element 100	1000 per unit	Yes	3 units
Element 200	500 per unit	No	2 units

The invoice is calculated as follows
Element 100
Total gross amount	3000
Holdback	300
Net invoice amount	2700

Element 200
Total gross amount	1000
Holdback	0
Net invoice amount	1000

If a record (originally an invoice line) to which holdback applies is posted from Project to Invoicing, the following two postings are made to the Revenue table:

One posting for the original record: Amount is net amount (gross amount minus holdback amount).
One posting for the holdback record: Amount is holdback amount.

If the original record is printed and posted to Invoicing, the invoice number is filled in the original and in the holdback record.

If a holdback line is transferred from Project to Invoicing, LN creates the following two records in the Revenue table:

One normal posting (as for a normal invoice): Amount is holdback amount.
One counter posting for the Holdback record: Amount is holdback amount.

If the holdback line is printed and posted to Invoicing, the previous records must contain the invoice number.