We’re in the construction industry and need to hold retainage for every invoice we send out customers, then bill that retainage amount on project completion. What I would like to see is (example. We have a $100,000 invoice with 5% retainage) the 95k get posted to AR and the remaining to get posted to a Retainage AR account to be dealt with / invoiced/moved to AR later. Does anyone have an ideas? I could hold off and not bill the retainage ortions at all until they’re due but finance needs to know what we have for retainage as soon as we ‘earn’ it
I’m in a similar construction environment. I’m using the Project module to withhold retainage. A regular invoice does not allow retention. I’m still testing the project module to identify the correct way for our business to use it. So far I’m using the Fixed Fee option to hold retainage but now I’m stuck with how to create the final invoice for the Full Retainage amount.
We use Project Management as well. We do milestone billing, which will create the amount of the milestone as an Advanced Billing invoice. The entire amount hits AR and I have no way of diverting retainage in any way
I would double check your Project Billing GL controls. I suspect the Deferred & Retained Revenue GL’s are missing.
Milestone billing doesn’t have the retention piece. I’m being told not to go to Contracts/Advanced Project Management because its so painful. Do you use contracts / fixed fee billing?
Yes and it’s a lot of steps just to create an invoice.