Enter the retainage tax amount. Initially defaults the calculated retainage tax for the billing item ([work complete retainage + stored materials retainage] x tax rate).
NOTE: For countries tracking Provincial Sales Tax (PST) and/or Goods & Services Tax (GST), such as Canada and Australia, retainage tax amounts will be broken out and updated to the appropriate GST/PST retainage tax payable accounts (as defined in HQ Tax Codes). The PST and GST amounts (included in tax basis) will be updated to the appropriate tax payable accounts.
ADD’L NOTE: If you are not tracking retainage tax separately (i.e. the Distribute Tax to Retainage option is unchecked in AR Company Parameters), both work complete and stored materials retainage will be included in the tax basis. However, the system will break out the amounts and update the appropriate GST/PST tax payable accounts.