Retainage overview

Retainage (also known as retention) is a portion of the agreed upon contract price intentionally withheld until the work is substantially complete to assure that the customer or vendor (for projects and grants) or contractor or subcontractor (for Construction) satisfies their obligations and completes a project.

You can release retainage during Construction project contract billing or use the release retainage task on the Accounts Receivable or Projects menu.

Workflow

retainage workflow links appear after image

Configure retainage in Accounts Receivable

  1. Enable retainage in AR for customers.

  2. Add General Ledger accounts, one for retainage receivable entries and one for retainage release clearing entries.

  3. Specify retainage tracking accounts.

  4. Enable retainage on Order Entry transactions definitions for customers.

  5. Optionally, set default retainage percentage for customers.

Configure retainage in Accounts Payable

  1. Enable retainage in AP for vendors.

  2. Add a General Ledger account for retainage payable entries.

  3. Specify a retainage tracking account.

  4. Enable retainage on Purchasing transactions definitions for vendors.

  5. Optionally, set default retainage percentage for vendors.

Withhold retainage

  1. Withhold retainage on customer invoices.

  2. Withold retainage on vendor bills.

Release retainage

  1. Release retainage.

  2. Release retainage when generating project contract invoice. (Construction subscriptions only)