AP Release Retainage/Retention/Holdback Form
Use the AP Release Retainage/Retention/Holdback form to release retainage for AP invoices or to place released retainage back on hold.
- AP Release Retainage (US)
- AP Release Retention (AU)
- AP Release Holdback (CA)
Retainage is the portion of an invoice’s gross amount that you withhold from payment until job completion. When you enter an invoice that includes retainage, the system automatically creates an additional sequence number to accommodate the retainage portion of each transaction, and assigns the retainage hold code designated in the AP Company Parameters form.
When you use this form to create a release retainage batch, the sequences (transactions) you create are available for selection. You can add transactions to the batch manually or by initialization. Initialization allows you to filter transactions based on specific criteria and then specify whether to release a specific amount, a percent of the vendor's total retainage, or release a percentage of each invoice. For a detailed description of how the system uses these options, see the F1 help.
You can run the initialization process as many times as needed, using different criteria. Since initialization is an iterative process, the system only adds transactions that do not already exist in the grid. When your batch contains the transactions you want, you can proceed to posting the batch.
Once you post the batch, the system releases the retainage and updates the appropriate GL accounts. This includes the ITC Contra accounts used for GST/PST (Australian and Canadian companies). You can then access the transactions for payment in the AP Payment Posting form.
In addition, the system includes released retainage on aging reports (for example, AP Aged Open Payables), using the Release Date to determine the appropriate aging brackets to use.
For instructions, see Release Retainage for an AP Invoice.