Setting up Retainage Accounts

Before you process invoices with retainage, you must set up one or more general ledger accounts to temporarily store the withheld retainage amounts that are not yet invoiced.

Set up the accounts in Settings > General Ledger > Chart of Accounts. The retainage accounts should be an accounts receivable account, such as 116.00 - Retainage Receivable.

You can set up one retainage account to record retainage for all your projects. Alternatively, you can set up multiple retainage accounts to record retainage applied to specific sections of the invoice.

After you establish retainage accounts, you map these accounts to invoice and accounts receivable accounts on the Invoice Mapping Accounts tab of Settings > Billing > Accounts Receivable.

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.