Add a Retainage Invoice
Retainage invoices are used to bill a portion of an invoice while withholding a retained amount until contractual conditions are met. This allows you to manage retained amounts accurately while keeping invoices linked to the appropriate jobs.
To add a retainage invoice:
Select + New from the top navigation.
Choose Retained Invoice.
Select Create an Invoice to create a standard invoice that includes retainage.
Note: This option redirects you to the New Invoice screen, where you can create a standard invoice that includes retainage. Once an invoice with retainage exists, the customer becomes eligible for retainage invoicing.
In Essentials, complete the required fields:
Customer: Select the customer being billed for the retained amount.
Job: Select the job associated with the original invoice where retainage was applied.
Terms: Define the payment terms for the invoice.
Transaction Date: The date the retainage invoice is issued.
Posting Period: The accounting period in which the invoice is recorded.
No.: The invoice reference number used for tracking.
Revenue Account: The account used to record retainage revenue.
In Items, review or add the retainage line:
Product: Select the product or service related to the retainage.
Description: Enter a description of the retained amount being billed.
Qty: Enter the quantity.
Unit of Measure: Select the applicable unit.
Unit Price: Enter the rate applied to the retainage.
Total Price: Review the calculated amount.
Tax (optional): Indicate whether tax applies.
Actions: Remove the item if added by mistake.
Review the totals:
Subtotal: The amount before retainage.
Retainage: The retained amount being released.
Total: The final amount to be billed.
(Optional) In Additional Details, add internal or customer-facing comments related to the retainage invoice.
Select Save to complete the process.
Once saved, the retainage invoice appears in Accounts Receivable and follows the standard invoice lifecycle for payment and reporting.
See Also
To learn more about invoicing and accounts receivable workflows, you can check:
Create an Invoice: Learn how to create and manage customer invoices.
Record a Payment: Learn how to apply payments to invoices.
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