Retention Billings From Subcontractors
The example given here shows you the effects of changing the retention amount on an Accounts Payable subcontract that has already been billed.
Example:
$10,000 subcontract
10% retention
01/31/05 Subcontractor bills $7,000
Enter A/P Vendor Invoice Entry for subcontract. Invoice amount = $7,000
$700 retention defaults in A/P Vendor Invoice Entry and is accepted.
Debit | Credit | |
A/P Subcontractor | 6,300 | |
A/P Retention | 700 | |
Direct Cost | 7,000 |
02/10/12 Subcontractor is issued a check for $6,300
02/28/12 Subcontractor bills $3,350 ($3,000 current, plus 1/2 of retention)
A/P Vendor Invoice Entry to subcontractor. Invoice amount = $3,000; $300 retention defaults in A/P Vendor Invoice Entry, but is overridden with $350-
Debit | Credit | |
A/P Subcontractor | 3,350 | |
A/P Retention | 350 | |
Direct Cost | 3,000 |
Spectrum will allow entry of negative retention only if the invoice is for a subcontract, and only in amounts up to the remaining retention balance on the contract.
