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.