A contractor is engaged to carry out a statement of work by a customer. The contract is fixed
price, and milestone payments will be made based on the individual completion of agreed
deliverables. The contract specifies that 10% of any invoice totals must be withheld. The exception
to this rule is that if certain deliverables are met ahead of the agreed schedule, then the full
amount can be invoiced. How would this scenario be set up in Oracle Projects?
A.
CustomerRetention Billing is implemented with a Withholding Term ofExpenditure Category.
B.
10% ofproject costs isset with abilling hold (as required) inExpenditureInquiry.
C.
A taskis used to collectcosts that are to be withholdingand the task is set to non-billable
asrequired.
D.
CustomerRetention Billing isimplemented with aWithholding Term based onEvent Types.
E.
A customerbill splitisimplemented to send 10% ofall invoiced costs to a dummy customer.
Explanation:
*Defining Retention Terms
Retention Terms determine how amounts are withheld from project invoices and how the withheld
amounts are billed to the project customer. Retention terms include:
Withholding Terms
Withholding Terms by Expenditure Category
Withholding Terms by Event Revenue Category
Billing Terms
*Witholding Terms
These terms apply to all sources of project invoice amounts for the specified project or top task.
For each term, you can define a withholding percentage or amount. Optionally, a threshold amount
can be defined to determine the maximum amount to be withheld per term.
Oracle Project Billing User Guide