About Updating AR
When release retainage batches are run (JB Batch Process), the system checks AR to determine whether the amount being released is greater than the available open retainage in AR plus the amount being brought over by the current bill.
If so, a warning displays in the Error List report, noting that there is not enough retainage for AR to release. If the release amount is equal to or less than the available amount, the system credits the previous billing in full until meeting the percentage.
Released retainage appears in the customer account in AR after JB Interface runs. The interface process creates AR credit transactions for the released retainage, assigning them a transaction type of “R” and applying them to each of the previous billing invoices for the contract. If you release less than 100% of the retainage, the system credits the previous billing in full until meeting the percentage. The system then creates a new invoice (with a transaction type of “R”) for the released retainage, which provides a single transaction for applying receipt of payment in AR.
The system assigns the new retainage invoice to the retainage receivables type or a current receivables type based on the Release Retainage to Current A/R check box setting. This also determines which Account Receivables GL account the system debits and whether the invoice appears in the Retainage column or on an AR aging.