Create a Retainage Account
Setting up retainage tracking:
-
- Create a Retainage account:a. Click theGearicon.
b. From the drop-down menu, selectChart of Accounts.
c. In theChart of Accounts, clickNew.
d. ForCategory Type, selectOther Current Assets.
e. ForDetail Type, selectRetainage.
f. For theName, enterRetainage Receivable.
g. ClickSave.
- Create a Retainage item:
a. Click the Gear icon.
b. From the drop-down menu within theListssection, selectProducts and Services.
c. In theProducts and Serviceswindow, clickNew.
d. Enter aNamefor the item (i.e.Retainage).
e. UnderSales Information, place a check-mark next toI sell this product/service to my customers.
f. Select theRetainage Receivableaccount from theIncome Accountdrop-down.
g. ClickSave.
Withholding retainage from an invoice:
- Click the+symbol located at the top of the screen.
- SelectInvoice.
- Select your customer.
- Fill out the remaining fields of the invoice, including the purchased line items.
- On the next available line of the invoice, selectRetainagefrom theProduct/Servicecolumn.
- In theRatecolumn, enter the amount of the retainage as a negative (-) number.
Note: If your retainage is a percentage, you must calculate this manually.
- ClickSave and Close.
In case you need a report in the future, you can follow these steps:
- Click theGear icon.
- SelectChart of Accounts.
- Click once on theRetainageaccount line, to highlight it.
- Click theReportbutton, in the top-right corner.
- ClickCustomise, located in the top-left corner of the report window.
- UnderRow/Columns, changeGroup BytoCustomer.
- ClickRun Report.
You can save this report, so you won't have to do a lot of customisation when you need it in the future. For instructions, you can refer to theMemorised Reportsarticle.