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Vendor Retention Terms - the retained amount is pushed from committed cost to remaining budget

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Posted on by AB-27040843-0

Hi,

Could someone help me with this query?

I am using Vendor Retention terms and am creating a PO of $100 to capture the cost. When the PO is confirmed the $100 is shown as a commitment in the /Project budget balances/ report. There is a 10% retention term assigned to the PO line. However when the PO invoice is posted 90% goes to consumed budget while 10% (i.e $10) moves to the 'Remaining budget'. Could you please clarify why would D365 free us 10% of the budget when the PO is still confirmed and we still owe the 10% to the vendor.

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Hana Xue Microsoft Employee on at

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Hi,
Regarding vendor payment retention, you can check out the link below for more information:
About vendor payment retention for projects | Microsoft Learn
sisn.com
Best Regards,
Hana

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saurabh bharti 15,059 Moderator on at

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Hi,

As per my understanding the moment you invoice the PO completely it gets reversed completely from Committed amount , now if you still wants to see the 10% under committed amount then this might require some clarification from Microsoft .

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AB-27040843-0 5 on at

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Hello Saurabh,

I appreciate your response. It's clear that posting an invoice triggers a reversal in the budget commitment, allocating 90% to consumed and 10% to remaining budget. I intend to reach out to Microsoft to seek clarification on why this 10% is released as budget remaining, especially considering that the vendor has yet to be paid and our obligation remains. Releasing the retained amount as budget remaining appears to compromise the integrity of the budget functionality, allowing users to potentially double-use the budget without being alerted or encountering an error message.

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