Payment of Retainage to a Vendor

Process:

This job aid describes the process for payment of retainage to a vendor. Some contracts require retainage be withheld until certain milestones are reached in a contract before the retainage can be paid. When it is determined that these requirements are met, retainage that has been withheld can be paid to the vendor on the contract. To release retainage payments within CORE, you will need to find the related encumbrance transaction within the RTGSUM table.

2. This will take you to the Retainage Summary By Commodity Line page. 

• Enter Award Transaction Department.

• Enter Award Transaction ID.

• Click Apply. 

• Selected Transaction will appear in the grid.

3. Click the Caret to expand the Award Transaction option.

• Select the Amounts subsection.

• Review amounts to ensure they are accurate.

In the main line of the award transaction on the RTGSUM table, you will see the following: the amount of the retainage that is pending (awaiting finalization on a PRM or PRC), the amount that is unpaid, the amount that has been withheld on the contract to this point, and the amount that has been released (paid) and the amount that has been forfeited. A more detailed breakdown is visible in the Amounts subsection by budget fiscal year.

4. To release retainage to the vendor, fill out the information under the Payout Terms subsection. 

• Select Vendor from Payment Method drop down list.

• Enter the Scheduled Payment Date in the Scheduled Payment Date field.

Note: The scheduled payment date is the date that the RTGPF should be
generated. Generally, this date should be today’s date. 

• Enter the Amount in the Requested Retainage Release/Forfeiture Amount field.
  Add other fields as directed per agency policy.

• Click Save.

Note: If the information is not saved the next step in the process will not happen. 

5. In the next nightly cycle a job will run that will clear the payout information and populate the information into an RTGPF Transaction. The user should look for this transaction the next business day. It will be in Draft phase. The RTGPF draft will need to have the Funding Profile, Funding Priority, and Funding Line fields in the Accounting tab COA section either all three entered or all three blank on all accounting lines. Please use agency policy as appropriate.   At that point, you can add any required attachments, validate and submit your RTGPF transaction for approval.