Set Up One or More Retainage Accounts

When you enable the retainage feature, you can set up a retainage general ledger account for each of your accounts receivable accounts. The retainage accounts are used to temporarily store the retainage amounts that are withheld on billing invoices and not yet invoiced.

After you release and bill a project's retainage in Interactive Billing, the retainage amount is removed from the retainage account and posted to the accounts receivable account.

If you set up multiple general ledger accounts for accounts receivable, you can set up a corresponding general ledger account for retainage for each AR account. For example, you could have multiple retainage accounts to record retainage applied to specific sections of the invoice.

To set up retainage accounts:

1. In the Navigation pane, select Settings > General Ledger > Chart of Accounts.
2. On the Accounts form, click + New Account.
3. Enter the first retainage account, which should be an accounts receivable account, such as 116.00 - Retainage Receivable.
4. Click Save.
5. Repeat steps 2 through 4 for each retainage account that corresponds to an accounts receivable account.