Account and bill for retainageLast updated on 03/22/2022
Retainage is a percentage of invoice that is not billed until the project is complete and the customer has approved the work. Retainage gives the customer recourse if they aren't satisfied with the work done. Use this process to invoice customers who have had retainage withheld on their project.
Things to know
Customer contracts specify if retainage is required and the retainage percentage.
If you use Applications for Payment, the Applications for Payment workflow enables you to set up and bill for retainage.
See Bill for retainage based on Application for Payment
If you do not use the Application for Payment workflow, use the steps in this article to set up and invoice for retainage for a project.
Account and bill for retainage
If you want to use retainage as you bill your customer, apply the retainage service you created in the pricebook to the invoice:
In the project, click Add invoice.
The Add invoice pop-up opens.
Select a business unit from the Business Unit dropdown.
Click ADD INVOICE.
Add anything to the invoice that you want to bill your customer for. For more, see Edit an Invoice and Invoice walkthrough: Office view.
To add retainage, click Add a Task.
Enter retainage details:
Name—Retainage
Unit Price—Enter the retainage amount
For example, if you have a $100,000 job that is progressively billed five times with 10% retainage, you need to enter -$2,000 . The total billed is $18,000. You’ll need to do this four times. Note: This accounts for the retained amount. The retained amount hits your Retainage receivable asset account.
Project Label—Auto populates if you set up the retainage task in the pricebook
When you’re done, click Save.
To preview the invoice, click Print
.To email the invoice to your customer, click Mail
.
For more, see View, print, or email the customer invoice.
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For more, see Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.
Disclaimer: Information provided in this article is for informational purposes only and it should not be construed to be legal advice. Information provided in this article may also not constitute the most up-to-date legal or other information. You should not act or refrain from acting on the basis of any information in this article to meet any compliance requirements without seeking independent legal or other professional advice.