Releasing Retainage for customer invoices

Related topics

Setting up Sage 50 for retainage

Processing retainage on customer invoices

Processing retainage on vendor invoices

Releasing retainage for vendor invoices

Entering sales invoices

Creating Inventory Items

Read an overview of Progress Billing

Once your jobs are complete, you can release retained amounts for the job by producing a final invoice for the customer. You can release retainage for your customer invoices in one of two ways. The first method shows you how to use the Progress Billing feature of Sage 50 to release retainage. The second method shows you how to release retainage manually using the Sales Invoicing window.

  1. Select Tasks > Select for Progress Billing.
  2. On the Select for Progress Billing - Filter Selection window, select the range of jobs that you want to release retainage for.Tell me more about the filter selection window.
  3. Check Release Retainage.
  4. Click OK..
  5. On the Select for Progress Billing window, select the Release Retainage tab. Tell me more about this window and tab.
  6. Select which retained amounts you want to release and then choose if you want to save the invoices for later printing and processing or if you want to print or email the invoices. When the retainage is released, the released amounts will be handled as standard receivables and aged accordingly.
  1. 1. Create a Service inventory item for retainage, specifying the correct General Ledger account for Retainage Receivable in the GL Sales Account Field. Also, you should specify an Exempt Item Tax Type for this inventory item since retained portions of invoices have been taxed already. Although this step is optional, we recommend it because it ensures that the correct general ledger account will be credited for the release of the retainage and it allows you to track the invoices by this item.
    1. a. Select Maintain > Inventory Items.
    2. b. Enter an Item ID and Description.
    3. c. Select Service as the Item Class.
    4. d. Leave Price Levels set to 0.00 and enter the Receivables Retainage account in the GL Sales Account field.
    5. e. Select the appropriate non-taxable Item Tax Type.
    6. f. Click Save.
  2. 2. Determine the total retainage for the job using the Job Retainage report.
  3. 3. Enter a sales invoice selecting the appropriate customer and the Retainage Service inventory item using the Apply to Sales tab.
  4. 4. Enter the amount of the retainage as a positive amount on the line item.
  5. 5. Enter the correct ID in the Job ID field. Do not select a phase or cost code.
  6. 5. Verify that no additional retainage is calculated for this invoice using the Withhold Retainage tab.
  7. 6. Print the invoice. The retainage will now show as a receivable and be aged based on the date of the invoice or its due date.