Example Setup

In this example, payment terms with discounts and one retainage rule are set at the contract level. The calculation is based on 30 percent completion of the contract. The control flag is set to blank to create retainage in A/R with no deferred taxes. The T and M line has no schedule of values, but has a markup of 25.00 on the T and M line.

This retainage rule is set up in the Retainage Rules Table program (P5204):

Retainage Rule	Description
D	10 percent Retainage until 30 percent Complete

This contract is set up in the Contract Master Revisions program (P5201):

Contract Part	Retainage Rule	Offset	Control Flag	Tax Explanation	Tax Rate/Area	Payment Terms
Contract	D	RETN		S	D1 = 3.5 percent	1/10 Net 30