COMPLEX PO - NO FUNCTIONALITY TO REDUCE TO VALUE OF RETAINAGE HELD

Hi,
R12 Purchasing provides Retainage functionality. Retainage represents funds withheld from payment to ensure that the contractor finishes work as agreed. The buying organization releases these funds only after verifying that the contractor has fulfilled all contractual obligations. Retainage is also called "retention" or "contractual withholds".
The only way to reduce the Retainage amount held is to create a retainage release invoice which then pays the Supplier.
No functionality is provided to reduce the value of the retainage down to reflect the buying companies use of the funds to penalise the contractor if they have not fulfilled all contractual obligations.
This is an incomplete solution. the purpose of retainage is to provide the buying company funds to recompense failure of the selling company. But how do we record use of those funds?
If there is no mechanism to reduce the value of the retainage held then the value is always available to be paid to the contractor
Thanks
Umesh
Edited by: Umesh Chandra Moharana on Jun 25, 2009 4:05 PM
Edited by: Umesh Chandra Moharana on Jul 2, 2009 9:40 AM

Umesh
If you want to partially pay (out of retained amount), create AP invoice manually (which is the way to get rid of retained amount) for that amount and pass GL entries in GL for the remaining.
If decide not to pay at all, you can either manually pass entries in GL or enter AP invoice manually and cancel the invoice and pass entries manually to get rid of retained account value.
Also something can be done in the SLA to create these entires automatically (with custom AAD)
Thanks
Nagamohan

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