Accounts Receivable > Setting Up Accounts Receivable > Accounts Receivable Options > About Retainage Accounting

About Retainage Accounting

Learn more

About Accounts Receivable Options

Selecting Accounts Receivable Processing Options

About Processing Retainage

Invoicing Customers for Outstanding Retainage

You can use Accounts Receivable to account for retainage (or a "holdback") that occurs when your customer withholds a percentage of an invoiced amount, usually by mutual agreement or according to a statute (such as a Builders Lien Act).

Before you can process retainage in Accounts Receivable, you must:

Retainage Document Numbering

Accounts Receivable assigns the next available invoice, credit note, or debit note batch number to the retainage batch. You specify the numbering system for retainage documents on the Retainage tab of the A/R Options screen.

Optional Fields

Accounts Receivable inserts on retainage documents any optional fields and values specified on original invoices, credit notes, and debit notes when you create a retainage batch. You do not specify optional fields and values separately for a retainage batch.