Enable retainage for customers

1. Go to Accounts Receivable > Setup > Configuration.
2. Scroll down to Accounting settings, and Enable Accounts Receivable Retainage.
3. From the Accounts Receivable retainage dropdown list, select the GL account to debit with the withheld retainage amount from customer invoices you create in Accounts Receivable. When you release and bill the withheld retainage on a separate AR sales invoice, the retainage receivable account is credited, and the account you use for AR receivables is debited until the AR sales invoice is paid, effectively clearing the retainage receivable account.
   
4. To separate retainage sequence numbers from other sequencing numbers, set unique sequence numbers to use for retainage on the customer Invoices.
5. Save your changes.