Processing AR Documents with Retainage

In some industries, such as construction, a customer can retain a part of an invoice amount until the necessary work has been completed and pay the retained amount when all the terms of the agreement have been met. In Acumatica ERP, you can process invoices and credit memos with retained amounts if the Retainage Support feature is enabled on the Enable/Disable Features (CS100000) form.

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 invoices with retainage in Acumatica ERP. You will also find procedures related to documents with retainage.

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Configuration of the Default Retainage Settings in the Accounts Receivable Subledger

In this topic, you will read about how to set the preference settings related to retainage, how to configure classes for customers who retain amounts on invoices and credit memos, and how to configure particular customers (and customer locations) that retain amounts on documents.

Processing Flow of AR Documents with Retainage

If a customer retains a part of the amount of an invoice, to process the total amount of the invoice, at least two invoices are created in Acumatica ERP: the invoice with retainage and the retainage invoice. The invoice with retainage is paid during the period of time agreed upon between your company and the customer. The retainage invoice is an invoice that contains the retained amount or a part of the retained amount to be paid, and it is paid after the contractual work has been finished. Multiple retainage invoices can be created for one invoice with retainage and a consolidated retainage invoice can be created for multiple invoices and invoice lines with retainage. Similarly, credit memos with retainage can be created manually on the Invoices and Memos (AR301000) form or automatically from the Pro Forma Invoices (PM307000) form with a negative total amount of a pro forma invoice. For these credit memos, the system calculates all retainage-related information (total retainage, unreleased retainage, and retained taxes) and creates a retainage credit memo. A consolidated credit memo can be created for multiple documents with retainage. For details about consolidated documents, see Consolidated Retainage Documents.

Consolidated Retainage Documents

In Acumatica ERP, the system can create a consolidated retainage document for multiple original documents that have the same customer and project.

Examples of Processing Invoices with Retainage

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

AR 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 an Invoice with Retainage (with Items' Quantities and Unit Costs)

You create an Accounts Receivable invoice by using the Invoices and Memos (AR301000) form. You use this procedure if you are specifying items' quantities and unit costs in the detail lines of the invoice. If you are instead specifying the line total amounts in the detail lines, you should use To Enter an Invoice with Retainage (with Line Totals).

To Enter an Invoice with Retainage (with Line Totals)

You create an AR invoice by using the Invoices and Memos (AR301000) form. You use this procedure if you are specifying line totals in the detail lines of the invoice. If you are instead specifying the items' quantities and unit costs in the detail lines, you should use To Enter an Invoice with Retainage (with Items' Quantities and Unit Costs).

To Enter a Credit Memo with Retainage

You create a credit memo with retainage by using the Invoices and Memos (AR301000) form.

To Create a Retainage Document (Release Retainage)

To create a retainage document, do the following:

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

To create multiple retainage documents, do the following:

To Release Retainage by the Same Percent for Multiple Lines

On the Release AR Retainage (AR510000) form, you can reduce the unreleased retainage for a whole document (this might be the case if you select a document in the Ref. Nbr. box), multiple documents, or a project by a certain percent without specifying this percent manually for each line. For example, you can use this procedure in the following cases:

Processing AR Documents with Retainage

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In some industries, such as construction, a customer can retain a part of an invoice amount until the necessary work has been completed and pay the retained amount when all the terms of the agreement have been met. In Acumatica ERP, you can process invoices and credit memos with retained amounts if the ''Retainage Support'' feature is enabled on the [HelpRoot_FormReference\CS_10_00_00|Enable/Disable Features] ([~/?ScreenId=CS100000|CS100000]) form. [anchor|#p_vfq_4jv_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 invoices with retainage in Acumatica ERP. You will also find procedures related to documents with retainage.
==In This Chapter{nestedtopics}==
*[HelpRoot_AccountsReceivable\AR__CON_ConfigurationforRetainage|Configuration of the Default Retainage Settings in the Accounts Receivable Subledger]
*:In this topic, you will read about how to set the preference settings related to retainage, how to configure classes for customers who retain amounts on invoices and credit memos, and how to configure particular customers (and customer locations) that retain amounts on documents.
*[HelpRoot_AccountsReceivable\AR__CON_ProcFlow_Invoice_with_Retainage|Processing Flow of AR Documents with Retainage]
*:If a customer retains a part of the amount of an invoice, to process the total amount of the invoice, at least two invoices are created in Acumatica ERP: the invoice with retainage and the ''retainage invoice''. The invoice with retainage is paid during the period of time agreed upon between your company and the customer. The retainage invoice is an invoice that contains the retained amount or a part of the retained amount to be paid, and it is paid after the contractual work has been finished. Multiple retainage invoices can be created for one invoice with retainage and a consolidated retainage invoice can be created for multiple invoices and invoice lines with retainage. Similarly, credit memos with retainage can be created manually on the [HelpRoot_FormReference\AR_30_10_00|Invoices and Memos] ([~/?ScreenId=AR301000|AR301000]) form or automatically from the [HelpRoot_FormReference\PM_30_70_00|Pro Forma Invoices] ([~/?ScreenId=PM307000|PM307000]) form with a negative total amount of a pro forma invoice. For these credit memos, the system calculates all retainage-related information (total retainage, unreleased retainage, and retained taxes) and creates a ''retainage credit memo''. A consolidated credit memo can be created for multiple documents with retainage. For details about consolidated documents, see [HelpRoot_AccountsReceivable\AR__CON_Consolidated_Retainage_Docs|Consolidated Retainage Documents].
*[HelpRoot_AccountsReceivable\AR__CON_Consolidated_Retainage_Docs|Consolidated Retainage Documents]
*:In Acumatica ERP, the system can create a ''consolidated retainage document'' for multiple original documents that have the same customer and project.
*[HelpRoot_AccountsReceivable\AR__CON_Examples_InvoiceProc_with_Retainage|Examples of Processing Invoices with Retainage]
*:In this topic, you will find some examples of invoices with retainage being processed in the system.
*[HelpRoot_AccountsReceivable\AR__CON_Retanage_Adjustment_Cases|AR 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_AccountsReceivable\AR__HOW_To_Create_Invoice_with_Retainage|To Enter an Invoice with Retainage (with Items' Quantities and Unit Costs)]
*:You create an Accounts Receivable invoice by using the [HelpRoot_FormReference\AR_30_10_00|Invoices and Memos] ([~/?ScreenId=AR301000|AR301000]) form. You use this procedure if you are specifying items' quantities and unit costs in the detail lines of the invoice. If you are instead specifying the line total amounts in the detail lines, you should use [HelpRoot_AccountsReceivable\AR__HOW_To_Create_Invoice_with_Retainage_LineTotals|To Enter an Invoice with Retainage (with Line Totals)].
*[HelpRoot_AccountsReceivable\AR__HOW_To_Create_Invoice_with_Retainage_LineTotals|To Enter an Invoice with Retainage (with Line Totals)]
*:You create an AR invoice by using the [HelpRoot_FormReference\AR_30_10_00|Invoices and Memos] ([~/?ScreenId=AR301000|AR301000]) form. You use this procedure if you are specifying line totals in the detail lines of the invoice. If you are instead specifying the items' quantities and unit costs in the detail lines, you should use [HelpRoot_AccountsReceivable\AR__HOW_To_Create_Invoice_with_Retainage|To Enter an Invoice with Retainage (with Items' Quantities and Unit Costs)].
*[HelpRoot_AccountsReceivable\AR__HOW_To_Create_Credit_Memo_with_Retainage|To Enter a Credit Memo with Retainage]
*:You create a credit memo with retainage by using the [HelpRoot_FormReference\AR_30_10_00|Invoices and Memos] ([~/?ScreenId=AR301000|AR301000]) form.
*[HelpRoot_AccountsReceivable\AR__HOW_To_Release_Retainage|To Create a Retainage Document (Release Retainage)]
*:To create a retainage document, do the following:
*[HelpRoot_AccountsReceivable\AR__HOW_To_Create_Multiple_Retainage_Invoices|To Create Multiple Retainage Documents (Release Retainage for Multiple Documents)]
*:To create multiple retainage documents, do the following:
*[HelpRoot_AccountsReceivable\AR__HOW_To_Release_Retainage_for_Multiple_Lines|To Release Retainage by the Same Percent for Multiple Lines]
*:On the [HelpRoot_FormReference\AR_51_00_00|Release AR Retainage] ([~/?ScreenId=AR510000|AR510000]) form, you can reduce the unreleased retainage for a whole document (this might be the case if you select a document in the '''Ref. Nbr.''' box), multiple documents, or a project by a certain percent without specifying this percent manually for each line. For example, you can use this procedure in the following cases: