admin
Posts 122
|
It is ONLY used on invoices that have been coded to a Subcontract. It is used to specify the amount that is to be *retained* from this invoice until whatever event triggers the *release of retainage*. For example, you have an agreement with one of your vendors that 5% of all invoices will be "retained" by you until the job has been satisfactorily completed. You receive an invoice from this vendor for $800.00. You enter 800.00 in the Gross Amount field and 40.00 in the Retainage Amount field. The Net Amount will compute as 760.00. The system will automatically record a distribution line with the jobid from the Subcontract, and the Retainage Payable cost code from the Job record (there must exist a retainage payable cost code for the job). This distribution line will have the retainage amount as a negative. You will add a distribution line of 800.00 to the job and cost code applicable. The *net* of the distributions will match the *net amount* of the invoice and all will balance out. When you are ready to *release* retainage that you have previously been held back, you will enter a negative amount in the Retainage Amount field, which will create a positive Net Amount.
|