About accounts payable holdbacks

Many job subcontracts include holdback. When you create a payable invoice, Sage 100 Contractor withholds holdback at the rate specified in the subcontract record. If you do not indicate a holdback rate in the subcontract record, you can withhold a flat amount on each individual invoice.

Posting a payable invoice declares the entire amount of the invoice as an expense. However, a percentage of the gross amount is withheld as holdback, so the client is actually billed for the net amount (gross invoice amount – holdback = net invoice amount). Therefore, holdback is already declared as an expense but is not paid out yet. Consequently, Sage 100 Contractor does not include holdback in the invoice aging.