COMPLEX WORK PROCUREMENT

Complex Work Procurement is an end-to-end integrated solution across the Oracle Procurement Cloud, Oracle
Financials Cloud, and Oracle Supply Chain Management Cloud applications. This solution is designed to model
procurement of complex contracts in industries such as construction, consulting, and professional services. Complex
work contracts tend to have high dollar values and long lead times, and are governed by complex payment terms.
You can use Complex Work Procurement to manage various aspects of the acquisition processes involved in
procuring complex work.

In this update, the Complex Work Procurement solution is comprised of 3 features. The first two features are part of
the Oracle Procurement Cloud applications, and the last one is part of the Oracle Financials Cloud applications:

 Create Purchase Orders with Retainage Terms

 Negotiate Retainage for Services
 Creation and Management of Supplier Invoices with Retainage

NEGOTIATE RETAINAGE FOR SERVICES

Retainage is a practice of withholding funds from payment until the contractor completes an agreed upon portion of
the work or fulfills contractual obligations.

With this feature, you can add retainage terms in an RFQ and allow suppliers to negotiate on these terms. The terms
include retainage rate and maximum retainage amount. Retainage rate is the percentage of the payment that will be
withheld before releasing payments to the contractor. Maximum retainage amount is the maximum amount that can
be withheld.

You can also specify retainage terms when adding lines with the spreadsheet or through the REST web services.
When suppliers are responding to negotiable retainage terms they can specify retainage terms when responding by
spreadsheets - both, full spreadsheet with requirements and lines, and the Lines only flat file spreadsheet.

You can also compare the retainage terms proposed by suppliers side by side during award analysis. When a
complex work purchase order is generated after award, the negotiated values of the Retainage Rate and Maximum
Retainage Amount from the awarded supplier's response are passed on to the purchase order.
Allow Suppliers to Negotiate on Retainage Terms

Add Retainage Terms for Each Line

Specify Retainage Terms Using the Response Spreadsheet

Minimize risk by communicating retainage requirements to potential suppliers in advance during negotiations for
complex work projects.  Consider suppliers' proposed retainage terms during award analysis to make the best award
decision for your project. The agreed on retainage terms are passed on to downstream transactions to ensure
compliance.

STEPS TO ENABLE

Oracle Sourcing supports the use of different Purchasing document styles to control which aspects of a negotiation
are available to buyers. You can select a Purchasing document style when creating negotiations using the Outcome
field.

To create a retainage enabled RFQ, you must use a Purchasing Document style that supports retainage. Use the
Manage Document Styles Task under the Procurement Offering to enable retainage for existing or newly created
user-defined document styles.

TIPS AND CONSIDERATIONS

Retainage terms are carried over when you create an amendment or a new round.

ROLE INFORMATION

To use this feature, one of the following roles is required:

 Job Role Name and Code:

o Category Manager (ORA_PON_CATEGORY_MANAGER)
o Sourcing Project Collaborator (ORA_PON_SOURCING_PROJECT_COLLABORATOR)

CREATE PURCHASE ORDERS WITH RETAINAGE TERMS

Create purchase orders with retainage terms by specifying retainage rates and maximum retainage amounts on the
purchase order lines. If needed, you can set up different retainage rates by schedule for the same purchase order line.
Invoices matched to such purchase orders will automatically withhold an amount as per the specified rate. The
maximum retainage amount sets the limit up to which you can withhold retainage from matched invoices.
You can import purchase orders with retainage terms using the purchase order file based data import (FBDI) or the
Draft Purchase Orders REST API.

You can now create retainage-related contract terms for purchase orders using these new contract variables:

 Retainage Rate system variable - represents the common retainage rate across purchase order schedules.
 Multiple Retainage Rates system variable - indicates multiple values exist for retainage rate across
purchase order schedules.
 Maximum Retainage Amount system variable - represents the maximum retainage amount for single-line
purchase orders.

Enter Retainage Terms at Purchase Order Line

Enter Different Retainage Rates for Purchase Order Schedules

Enter Maximum Retainage Amount and Retainage Rate on FBDI Purchase Order Import Template

Procurement Contracts System Variables

Using this feature, you can perform these tasks:

 Create purchase orders with negotiated retainage terms from awarded bids in Oracle Sourcing Cloud.
 Communicate purchase orders with retainage terms via email or electronic messaging.
 Configure BI publisher templates to include the retainage terms.
 Monitor retainage balances on your purchase orders from the Purchase Order Life cycle and Schedule Life
cycle pages.
  Analyze retainage-enabled purchase orders using the OTBI Purchasing Real time subject area.

Order Life Cycle

OTBI Procurement - Purchasing Real Time Analysis

STEPS TO ENABLE

1. In the Procurement Offering, navigate to the Manage Document Styles task.

2. Create a new document style or update an existing user-defined document style.
3. Set Retainage Enabled to Yes.

NOTE: After enabling the retainage terms on the document style, you need to expose the Retainage Rate
column using the View > Columns menu on the Lines and Schedules tab, and expose the Maximum Retainage
Amount column from the View > Columns menu on the Lines tab. If you don't see the the Retainage Rate or the
Maximum Retainage Amount columns as expected, then use the Page Composer (Settings and Actions menu > Edit
Pages) to render them using this EL expression.
       #{bindings.IsRetainageAllowedByStyle.inputValue}
You need to add this EL expression in the Show Component property of each column in the appropriate tab.

TIPS AND CONSIDERATIONS

 Use the Manage Document Styles task under the Procurement Offering to enable retainage for existing or
newly created user-defined document styles.
 You can't enable retainage terms for seeded document styles: Standard Style, Consignment Purchases Style,
Configure to Order Style, and Outside Processing Style.

ROLE INFORMATION

You have a couple of options for giving people access to set up and use this feature, depending on whether you're
assigning them predefined job roles or your own configured job roles.

To set up this feature, here's what you need:

 Users who are assigned this predefined job role are automatically able to set up this feature:
o Procurement Application Administrator
(ORA_PO_PROCUREMENT_APPLICATION_ADMIN_JOB)

 Users who are assigned configured job roles that contain these privileges are able to set up this feature:
o Manage Purchasing Document Style
(PO_MANAGE_PURCHASING_DOCUMENT_STYLE_PRIV)

To use this feature, here's what you need:

 Users who are assigned this predefined job role are automatically able to access this feature:
o Buyer (ORA_PO_BUYER_JOB)

 Users who are assigned configured job roles that contain this privilege are able to access this feature:
o Create Purchase Order (PO_CREATE_PURCHASE_ORDER_PRIV)
o Change Purchase Order (PO_CHANGE_PURCHASE_ORDER_PRIV)