Retainage Release Invoice Concept and it's Accounting Entry - Oracle Payables

This invoice is used to hold some portion of amount from the supplier Payment.The remaining will be paid to supplier only at the completion of the total work.

Setup Steps:

1. Enter Retainage Account at Financial Options.

2. Enter Retainage Percentage (%) at Supplier level in Invoice Management Tab. 
3. Create Complex Service Agreements PO in Purchasing Module.
4. Create a Standard Invoice by matching with above created Complex Service Agreement PO.
5. Make Payment for above Standard Invoice.
6. When Contract the is completed, Release the Retainage Percentage amount by creating Retainage Release Invoice by matching with the PO.
7. Make payment for Retainage Invoice.
Accounting Entries:
When Invoice is matched with Standard Invoice:
          Accrual A/c.........................Dr.
                         To Liability A/c .............Cr.
                         To Retainage A/c............Cr (Pick from Finacial Options)
For Making Payment for Standard Invoice:
           Liability A/c........................Dr
                         To Cash Clearing A/c.........Cr
When Retainage Invoice is Created:
           Retainage A/c.......................Dr
                         To Liability A/c ....................Cr.
For Making Payment to Retainage Invoice:
           Liability A/c....................... Dr
                         To Cash Clearing A/c..............Cr.

Withholding Tax Invoice Concept

If customer want to withhold the tax amount charged by supplier in the invoice, and customer want to pay the tax amount directly to tax authorities instead of paying to supplier. For that System automatically create a withholding tax invoice. In this case tax authority would be a supplier.
Setup Steps:
Step: 1 Enable WHT at payable optionsStep: 2 Define WHT special calendars
Step: 3 Define Supplier as tax authority
Step: 4 Create WHT code and group
Step: 5 Assign WHT group at payables options
Step: 6 Enable WHT at supplier header and site level and assign WHT Group
Step: 7 Create Standard invoice
Step: 8 Query WHT invoice for cross verification purpose.
Accounting Entries:
When WHT applied to Standard invoice
             Expenses A/c ................................Dr
                         To Liability A/c .........................Cr
                         To Withholding Tax A/c ..............Cr
For Withholding Tax Invoice ( Auto Generated)
             WHT Expenses A/c ....................Dr
                         To WHT Payaables/Liability A/c................Cr