Release retainage when generating project contract AR sales invoices

Generate project contract AR sales invoices to release and include billed retainage amounts as part of your regular project contract billing.

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.

This task releases retainage previously withheld on project contracts only. It combines the released retainage and regular project contract billing on the same AR sales invoice.

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

When you release or bill retainage by generating a project contract AR sales invoice, Sage Intacct creates three AR sales invoices:

  • Project contract AR sales invoice: Shows the retainage billed for each Construction project contract line.

  • AR retainage release AR sales invoice: Records the release of retained amounts.

  • AR credit retainage release AR sales invoice: Offsets the released retainage in Accounts Receivable.

You can also release retainage using the Retainage task on the Accounts Receivable or Projects menu, or in bulk using the flexible retainage release feature.
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 cannot disable these dimensions.
Subscription

Construction

Projects configured for 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

  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 AR sales invoices.

  2. When generating project contract invoices (Projects > All> AR sales invoices > Generate Sales Invoices), specify the following:

    1. On the Invoicing options tab, select to Invoice by project contract. Then select a project contract.

    2. Complete the remaining fields on this tab, and select Preview.

    You can only release retainage amounts on Construction project contract AR sales invoices.

  3. For progress bill Construction project contract lines:

    1. Scroll to the Project contract lines section of the Generate invoices page.

    2. In the Retainage to bill this period column, enter the retainage amount to bill for each project contract line.

  4. For time and material Construction project contract lines:

    1. Scroll to the Summary - selected time and material expense section.

    2. In the Retainage to bill this period column, enter the retainage amount to bill for each project contract line.

  5. Review and complete the other fields on the page as needed. Then create the AR sales invoice.