Processing AP Documents with Retainage

In some industries, such as construction, it is necessary to withhold a portion of the contract amount until the work has been completed to ensure that the vendor will satisfy its obligations and complete a particular project. In Acumatica ERP, if the Retainage Support feature is enabled on the Enable/Disable Features (CS100000) form, you can process bills and debit adjustments with retained amounts and track retainage by document line.

In this chapter, you will read about the configuration necessary for the processing of retainage, the processing flow of documents with retainage, and examples of the processing of bills and debit adjustments with retainage. You will also find the procedures related to documents with retainage.

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Configuration of the Default Retainage Settings in Accounts Payable

In this topic, you will read about how to set the preference settings related to retainage, configure classes for vendors who retain amounts on bills and debit adjustments, and configure particular vendors (and vendor locations) that retain amounts on AP documents.

Processing Flow of AP Documents with Retainage

If your company retains a part of the amount of a bill, to process the total amount of the bill, at least two bills are created in Acumatica ERP: the bill with retainage (that is, the bill for which part of the amount is retained) and the retainage bill (that is, the bill that contains the retained amount or the part of the retained amount to be paid). The bill with retainage is paid during the period of time agreed upon between your company and the vendor. The retainage bill is paid after the contractual work is finished. Multiple retainage bills can be created for one bill with retainage.

Correction of a Bill with Retainage

In Acumatica ERP, the details of the bill can be changed only if the bill has the On Hold or Balanced status. If the bill has Open status, you can edit only the cash discount date and the due date until the document is settled. The closed bill cannot be edited at all.

Examples of Processing Bills with Retainage

In this topic, you will find some examples of bills with retainage being processed in the system.

AP Retainage Adjustment Cases

In this topic, you will read about the cases when you may need to adjust retainage amounts, correct released retainage, and revert incorrect retainage documents. The following sections describe each case, the actions that should be taken, and the resulting documents that will be generated in the system.

To Enter a Bill with Retainage (with Items' Quantities and Unit Costs)

You enter a vendor bill with retainage on the Bills and Adjustments (AP301000) form. You use this procedure if you are specifying items' quantities and unit costs in the detail lines of the bill. If you are instead specifying the line total amounts in the detail lines, you should use To Enter a Bill with Retainage (with Line Totals).

To Enter a Bill with Retainage (with Line Totals)

You enter a vendor bill with retainage on the Bills and Adjustments (AP301000) form. You use this procedure if you are specifying line totals in the detail lines of the bill. If you are instead specifying the items' quantities and unit costs in the detail lines, you should use To Enter a Bill with Retainage (with Items' Quantities and Unit Costs).

To Enter a Bill with Retainage Paid by Line

You enter a vendor bill with retainage on the Bills and Adjustments (AP301000) form. You use this procedure if you want to be able to pay multiple lines of this bill separately and to track the retainage by line.

To Enter a Debit Adjustment with Retainage

You create a debit adjustment with retainage by using the Bills and Adjustments (AP301000) form.

To Create a Retainage Document (Release Retainage)
To Create Multiple Retainage Documents (Release Retainage for Multiple Documents)

On the Release AP Retainage (AP510000) form, you release retainage for multiple documents (billsor debit adjustments) from which a part of the amount has been retained. When the retainage is released, for each bill with retainage, the system creates a retainage bill with the specified amount for each bill with retainage selected for processing during this procedure. For each debit adjustment with retainage, the system creates a retainage debit adjustment.

Processing AP Documents with Retainage

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In some industries, such as construction, it is necessary to withhold a portion of the contract amount until the work has been completed to ensure that the vendor will satisfy its obligations and complete a particular project. In Acumatica ERP, if the ''Retainage Support'' feature is enabled on the [HelpRoot_FormReference\CS_10_00_00|Enable/Disable Features] ([~/?ScreenId=CS100000|CS100000]) form, you can process bills and debit adjustments with retained amounts and track retainage by document line. [anchor|#p_b5l_njv_vxb]{br}

In this chapter, you will read about the configuration necessary for the processing of retainage, the processing flow of documents with retainage, and examples of the processing of bills and debit adjustments with retainage. You will also find the procedures related to documents with retainage.
==In This Chapter{nestedtopics}==
*[HelpRoot_AccountsPayable\AP__CON_Configuration_for_Retainage|Configuration of the Default Retainage Settings in Accounts Payable]
*:In this topic, you will read about how to set the preference settings related to retainage, configure classes for vendors who retain amounts on bills and debit adjustments, and configure particular vendors (and vendor locations) that retain amounts on AP documents.
*[HelpRoot_AccountsPayable\AP__CON_Processing_AP_Bills_with_Retainage|Processing Flow of AP Documents with Retainage]
*:If your company retains a part of the amount of a bill, to process the total amount of the bill, at least two bills are created in Acumatica ERP: the bill with retainage (that is, the bill for which part of the amount is retained) and the ''retainage bill'' (that is, the bill that contains the retained amount or the part of the retained amount to be paid). The bill with retainage is paid during the period of time agreed upon between your company and the vendor. The retainage bill is paid after the contractual work is finished. Multiple retainage bills can be created for one bill with retainage.
*[HelpRoot_AccountsPayable\AP__CON_Correction_of_Bill_with_Retainage|Correction of a Bill with Retainage]
*:In Acumatica ERP, the details of the bill can be changed only if the bill has the ''On Hold'' or ''Balanced'' status. If the bill has ''Open'' status, you can edit only the cash discount date and the due date until the document is settled. The closed bill cannot be edited at all.
*[HelpRoot_AccountsPayable\AP__CON_Understanding_Bills_with_Retainage_Processing|Examples of Processing Bills with Retainage]
*:In this topic, you will find some examples of bills with retainage being processed in the system.
*[HelpRoot_AccountsPayable\AP__CON_Retanage_Adjustment_Cases|AP Retainage Adjustment Cases]
*:In this topic, you will read about the cases when you may need to adjust retainage amounts, correct released retainage, and revert incorrect retainage documents. The following sections describe each case, the actions that should be taken, and the resulting documents that will be generated in the system.
*[HelpRoot_AccountsPayable\AP__HOW_To_Create_Bill_with_Retainage|To Enter a Bill with Retainage (with Items' Quantities and Unit Costs)]
*:You enter a vendor bill with retainage on the [HelpRoot_FormReference\AP_30_10_00|Bills and Adjustments] ([~/?ScreenId=AP301000|AP301000]) form. You use this procedure if you are specifying items' quantities and unit costs in the detail lines of the bill. If you are instead specifying the line total amounts in the detail lines, you should use [HelpRoot_AccountsPayable\AP__HOW_To_Enter_Bill_with_Retainage_Line_Total|To Enter a Bill with Retainage (with Line Totals)].
*[HelpRoot_AccountsPayable\AP__HOW_To_Enter_Bill_with_Retainage_Line_Total|To Enter a Bill with Retainage (with Line Totals)]
*:You enter a vendor bill with retainage on the [HelpRoot_FormReference\AP_30_10_00|Bills and Adjustments] ([~/?ScreenId=AP301000|AP301000]) form. You use this procedure if you are specifying line totals in the detail lines of the bill. If you are instead specifying the items' quantities and unit costs in the detail lines, you should use [HelpRoot_AccountsPayable\AP__HOW_To_Create_Bill_with_Retainage|To Enter a Bill with Retainage (with Items' Quantities and Unit Costs)].
*[HelpRoot_AccountsPayable\AP__HOW_To_Create_Bill_with_Retainage_Paid_By_Line|To Enter a Bill with Retainage Paid by Line]
*:You enter a vendor bill with retainage on the [HelpRoot_FormReference\AP_30_10_00|Bills and Adjustments] ([~/?ScreenId=AP301000|AP301000]) form. You use this procedure if you want to be able to pay multiple lines of this bill separately and to track the retainage by line.
*[HelpRoot_AccountsPayable\AP__HOW_To_Create_Debit_Adj_with_Retainage|To Enter a Debit Adjustment with Retainage]
*:You create a debit adjustment with retainage by using the [HelpRoot_FormReference\AP_30_10_00|Bills and Adjustments] ([~/?ScreenId=AP301000|AP301000]) form.
*[HelpRoot_AccountsPayable\AP__HOW_To_Release_Retainage|To Create a Retainage Document (Release Retainage)]
*[HelpRoot_AccountsPayable\AP__HOW_To_Release_Retainage_Multiple_Lines|To Create Multiple Retainage Documents (Release Retainage for Multiple Documents)]
*:On the [HelpRoot_FormReference\AP_51_00_00|Release AP Retainage] ([~/?ScreenId=AP510000|AP510000]) form, you release retainage for multiple documents (billsor debit adjustments) from which a part of the amount has been retained. When the retainage is released, for each bill with retainage, the system creates a retainage bill with the specified amount for each bill with retainage selected for processing during this procedure. For each debit adjustment with retainage, the system creates a retainage debit adjustment.