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Releasing AR Retainage

AR Release Retainage releases held retainage on invoices entered directly in Accounts Receivable. Release creates a new AR invoice (description typically "Released Retainage") that is subject to payment like a regular invoice.

:::caution Use the correct path

  • Invoices originated in Job Billing → use JB Release Retainage (JB Batch Process).
  • Invoices entered directly in AR → use this form.

Wrong path causes AR/JB mismatches. Do not apply AR Cash Receipts to unpaid retainage on a JB-created invoice to "release" it; that makes JB Open Retainage inaccurate. Use JB Release Retainage instead. :::

Before you start​

  • Confirm invoice origin (direct AR vs JB).
  • Know customer filters and the release-through date.
  • Review AR Company Parameters Release Retainage to Current A/R and retainage-tax flags with accounting.
  • Receivable type Retainage / Accts Rec accounts exist on AR Receivable Types.

Steps​

  1. Open AR Release Retainage and start or open a batch.
  2. Set customer and optional filters: JC company/contract, receivable type, invoice #, transaction/due dates, and release-through date (date through which to release billed retainage).
  3. Enter release invoice header fields as required (including Invoice # for the release invoice when auto-numbering is off, and Due Date). Due date plus Company Parameters Release Retainage to Current A/R control how the release ages into current AR.
  4. Choose how to calculate release:
    • Manual: after filters, use the chevron to load the grid; enter Release PCT or Release Amt per invoice line, then open Release Details for per-item overrides.
    • Auto Calculate Release Retainage:
      • Percentage: release that percent of each invoice's total open retainage, then distribute across items starting with the first item until the released amount is fully allocated.
      • Amount (fixed): release a flat dollar total beginning with the oldest invoice and continuing through successive invoices until the amount is fully released.
  5. Review Release Details for per-item Release Pct / Release Amt (and retainage tax release amounts when shown). Override as needed. Partial releases may cover only some items.
  6. Prefer File → Process Batch → Validate before Post. Review the Release Retainage Audit List and GL distribution, then post.

What posting does​

  1. The original invoice is credited for the released retainage and a new release invoice is created for the released amount. If Release Retainage to Current A/R is checked and retainage uses a separate GL account, release credits Retainage and debits Accounts Receivable; otherwise amounts can remain in the retainage column/account.
  2. Retainage tax is included in release totals when Company Parameters distribute tax to retainage.

Notes​