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[Esther Paradoski]

I am curious as to how everyone is handling construction holdbacks to vendors? We often have construction projects that when complete, we can are allowed to holdback 7.5% of the vendor’s invoice for a period of time. Has anyone found a set up within Dynamics that allows you to manage holdbacks to vendors?

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Esther Paradoski
Ducks Unlimited Canada
Stonewall MB
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[Donna Cribbin]

Vendor retention (holdback) is supported in the Project Management and Accounting module.  The retention terms are user-definable.  The vendor retention terms are assigned to the project.  Invoices posted against project purchase orders with vendor retention terms will automatically calculate and “holdback” the appropriate amount based on the retention terms. The release of retained amounts is accomplished by posting a vendor invoice against the PO.  Are you using the projects module?  If not, is that an option?

Donna Cribbin
Solution Architect
DXC Eclipse

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Donna Cribbin
DXC Technology
New York NY
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[Esther Paradoski]

Hi Donna, 

We are using the projects module extensively, but our projects are very different from projects in the normal sense as many do not end. We rehabilitate and steward wetlands, so our projects are marshes that we have for decades and not all invoices would have a holdback. I will look into this vendor retention piece and test it to see if I can make it work for us. I am glad to hear that Microsoft has thought of something for this. I couldn’t find it in any of my searches, but then again I haven’t heard of it referred to as retention, even in the Provincial act that allows for these construction holdbacks in our Province. Thank you for your help, I really appreciate it.

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Esther Paradoski
Ducks Unlimited Canada
Stonewall MB
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[Sebastien Ferland]

Just be careful that there is no accounting of the sales taxes to be paid on the vendor retention.  So if you have significant amounts of retained amounts, you might have a large tax payable when you release the invoice/payment of the retention.  My understanding is that in construction the retention is held until the completion of the construction, so there can be a significant tax liability all released at the same time (or in a short period of time)

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Sebastien Ferland
Avanade
TX
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[Esther Paradoski]

Thank you for the information Sebastien, I will be sure to track all of the GL entries in my tests as well.

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Esther Paradoski
Ducks Unlimited Canada
Stonewall MB
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[Chris Kane]

Esther, 
There is an upcoming UG meeting that has a construction focus that you may find helpful with networking with other users with these types of questions.  I’ve included the link below.

https://www.axug.com/viewdocument/aec-sig-session-march-26th-27th?CommunityKey=2bc29068-7e98-4fb5-be3d-de8c4f3317bf&tab=librarydocuments

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Chris Kane
Strategic Alliance Manager
Wolters Kluwer
Rockwall TX
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