Release retainage when generating project contract invoices

Construction subscription is needed. To enable a Construction subscription, contact your Sage Intacct account manager. Regional support for Construction is limited to the United States, Canada, Australia, and the United Kingdom.

Release and include billed retainage amount with your regular project contract billing when you generate a Construction project invoice (Projects > All > Invoices > Generate Invoices). This task releases previously withheld retainage amounts for project contracts only and combines the project contract billing and released retainage amounts on the same invoice.

You can release the retainage amount for billing up to the full amount of retainage previously held for each Construction project contract line.

You can release retainage amounts during Construction project contract billing or use the retainage release task on the Accounts Receivable or Projects menu.
Requirements to configure retainage
Prerequisites Before you can enable retainage features, you must first configure:
  • Accounts Payable (AP)
  • Accounts Receivable (AR)
  • Cash Management
  • General Ledger (GL)
  • Order Entry (OE)
  • Projects
  • Purchasing
Restrictions
  • You cannot enable a Contracts and Construction subscription together on the same company.
  • Configure Construction-enabled companies with the accrual only accounting method.
  • The Construction subscription enables the project, task, and cost type dimensions. While use is optional, you can't disable these dimensions.
Subscription
  • Construction
  • Projects, Module: Project Costing and Billing
User Type
  • Business
  • Project Manager
  • Construction Manager
Permissions

Retainage permissions:

  • Accounts Receivable release retainage: release retainage on customer AR sales invoices
  • Accounts Payable release retainage: release retainage on supplier AP supplier invoices

How do I bill a retainage amount on project contract invoices?

  1. When you configure Accounts Receivable (Accounts Receivable > Setup > Configuration), specify a retainage release clearing account. This clearing account is used when you release and bill retainage amounts related to Construction project contract invoices.

  2. Generate project contract invoices (Projects > All > Invoices > Generate Invoices). Complete the information on the Invoicing options tab, then select Preview.

    You can only release retainage amounts on Construction project contract invoices, so ensure that you specify a project contract invoice.

  3. For progress bill Construction project contract lines, enter the retainage amount to bill on each line in Retainage to bill this period.

  4. For time and material Construction project contract lines, use the Summary of selected time and material expense section to enter retainage to bill for each project contract line.

  5. Generating a Construction project contract invoice creates a line for each project contract line with billed retainage included and a corresponding credit retainage release invoice in Accounts Receivable.

When you release or bill retainage by generating a project invoice, three invoices are created: one project contract invoice showing the retainage billed for each Construction project contract line, one AR retainage release invoice, and one AR credit retainage release invoice.