Crediting Retainage

If you need to credit the customer for previously billed retainage, follow these steps:

Enter a Credit Memo for the customer
Enter the amount of the credit on the Apply to Sales tab, selecting a general ledger account with an Account Type of Receivables Retainage and selecting a non-taxable sales tax ID.
Select the appropriate job, but do not select a phase or cost code.
Select the Withhold Retainage tab and change the retainage % or retainage amount to zero.
Save the Credit Memo.