Progress Payments and Retentions

Progress payments is a scheduled payment option to handle payments for jobs which can include a retention percentage.

A reminder is sent on the day that the progress payment is due.

Retention is taking a percentage off the invoice and then taking that to create either a future invoice or a current invoice depending on the type of retention.

There are two types of retentions

1. Charge tax now

2. Future invoice

Both of these will follow a similar process flow, however the invoice date and the invoice processing will be slightly different.

Charge tax now will create the job percentage invoice and if the retention is activated, create a credit note for the retention amount and an invoice for the retention and charge it now.

The job invoice will be for the full amount , example 10,000 and the retention of 10% will be 1000.

The retention value is just an indication on the invoice, this will use a custom item to create a negative 1000 retention value, but with 100% discount.  Which technically means there's no charge but shows the customer that there is a retention value.

In this particular case the credit note for the 1000 will be processed and automatically allocated to the invoice, therefore showing, but the amount due will be for 9000 after the allocations.

An invoice will be created to compensate for the credit note which will be marked as a retention invoice which they need total still shows let the amount due will be 10,000.

Future invoice

The job invoice will be for the full amount with the retention custom line of 1000, however with no discount which will then show that the total invoice value will be 9000.

In this particular case a future invoice for the retention date will be created and marked as a retention invoice.

The future retention invoice will be in preparation status but marked as a retention.

In the invoice line the retention value will be shown for the 1000 with the tax and descriptions of the invoice will be put in.

When the 2nd invoice is produced, the system will add to that future retention invoice a second line representing the second invoice which will be reflected on the future invoice.

When the date of that invoice comes to date, a reminder and a note will be sent to the user telling them that there is a retention invoice to be processed and monies to be collected.

Manage Job button link

When clicking on the Payment / Retentions

This will activate progress payments and have an activate retention's on the job line.

This will be important when we do job invoices to note whether there are progress payments or retention's against that job.

The flags will also be good in other areas where we may need it.

When first going into the progress payment retentions the tick box for create reminders is on. When clicking on saving, a reminder is created for each of the linked users.

Then the create reminders tick box is set to off.

Payment reminders

 

 Add and edit payment and retention

 

 Retention defaults for SCM and inventory item

 

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Inventory item setup for Custom items only

The option for is retention item is only activated for selection if it is a custom item, otherwise it is grayed out

 

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Job Invoice tab with Progress payment

Under job invoice there will be two tabs.

1. Job invoice

2. Progress invoices as a second tab which checks for all progress invoice is due to be invoiced

There is an indicator at the top of the window that is similar to the reminders one which show the progress payments due.

The red number is the past progress invoices that have not been invoiced and the blue one is the current today number of invoices to be processed.

 

There is a create invoice button under the progress invoices tab, so when one highlights the progress invoice and click on create invoice we know which one to link the progress invoice to a specific invoice.

This opens the normal add button but will populate the information of the job.

 

The add button and create invoice button will have similar information as below.

When clicking on the create invoice button and the job has the progress payment link activated, then the create button will remain disabled similar to the view documents button.

Until you click on the progress payment button to select which payment you want to link the invoice of the job that is been created.

Once this is done then information is given on the progress payment link as well as the retention activated yes or no.

 

The percentage invoice that is created will be prepopulated with some information based on the progress payment.

Amount to invoice will be the progress payment value.

The description will be the description that we have entered at the progress payment section.

If this came from a progress payment and the retention tick was applied then pre populate all the information below for the retention.

 

However, if there was no progress payment activated or retention tick box activated at the job level.

But the user wants to change their mind , he will have the ability to put the tick on apply a percentage stipulate the information and then it will produce a retention's output.

 

 Adding in a retention line which is the custom line

  

Creating current invoices and processing with create a note current date in processing

Or

Creating a future invoice with the retention line

 

Information is filled in on the invoice for the various retention values