Set or Release Retainage on a Subcontractor Invoice
Objective
To set or release retainage for line items on a subcontractor invoice with the Invoicing tool.
Background
A common retainage practice is to withhold 5-10% of a contract's total value until a milestone is reached. Then, the withheld amount can be released as a progress payment. When work is substantially complete, the withheld amount can be released as a final payment.
Things to Consider
- Required User Permissions:
- To edit an invoice before/during/after the current billing period, 'Admin' level permissions on the project's Commitments tool
OR - To edit an invoice during the current billing period only, 'Standard' level permissions on the project's Commitments tool and you must be the invoice contact on the contract. This action automatically adds you to the 'Private' drop-down list on the contract.
- To edit an invoice before/during/after the current billing period, 'Admin' level permissions on the project's Commitments tool
- Additional Information:
- To set the same percentage of retainage on all line items in the invoice, enter a value to apply to all line items in the invoice.
- To release retainage on all line items, enter a value to apply to all line items. This moves the desired percentage from the 'Currently Retained' column to the 'Released This Period' column.
- For customers in Australia
, you can also manage withholding using the sliding scale retention feature. To learn more, see What is sliding scale retention?
Prerequisites
Steps
- Navigate to the project's Invoicing tool.
- Click the Subcontractor tab.
- Locate the contract to work with. Then click its link in the Contract column.
- Click the Invoices tab.
- Locate the invoice to work with. Then click the Edit button.
- Click the Detail tab in the invoice.
- Click the Edit button.
- Choose one of the following: