Retainage

 

Retainage is first configured on the Project window on the Setup tab. Here you can define a default retainage percentage and indicate whether or not the retainage is taxable. The default Retainage Taxable setting for new projects is set in the Division Master window.

 

The project setting is a default, however retainage can be identified as taxable or non-taxable at the point when the retainage is recognized.

 

 

The project default retainage is used when sections are added to the project. The retainage can then be modified by section as needed. Sections that existed on the project prior to setting the project default retainage will not be affected by the project default percentage.

 

 

When retainage is non-taxable the tax associated with the retainage is invoiced at the point when the retainage payment is due.

 

 

When an invoice is created for product in project section with retainage, the suggested retainage will be calculated using the sections defaults. The user can refine the amount of retainage to be held from the invoice as well as the taxable amount of retainage to include on the invoice.

 

 

Retainage can be identified when processing the customer payment. This amount can differ from the amount originally defined on the invoice.

 

In the customer payment form below, a retainage amount was identified on when the invoice was created of 6.65 in the Door Hardware section of the Original Project. The customer payment entry person can adjust the amount by entering the adjustment in the Retainage Amount column. Alternatively, pressing the button to the left of the Total Retainage column on the invoice will automatically allocate the difference between the Invoice Balance and the Payment Applied to the Retainage Amount columns for each of the applicable sections.

 

 

When your jurisdiction allows for tax to be collected and remitted when retainage is collected, a final invoice must be generated for the tax amount. This is done by creating a new invoice for the project, and selecting the Apply for Retainage option.

 

 

This will create a billing for the tax on the retainage amount only.