About accounts payable retention

Many job subcontracts include retention. When you create a payable invoice, Sage 100 Contractor withholds retention at the rate specified in the subcontract record. If you do not indicate a retention 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 retention, so the client is actually billed for the net amount (gross invoice amount – retention = net invoice amount). Therefore, retention is already declared as an expense but is not paid out yet. Consequently, Sage 100 Contractor does not include retention in the invoice aging.

When you are ready to pay the subcontractor for retention, it is not necessary to create a new invoice. You can release retention on each invoice individually, or you can release the retention for the entire subcontract at one time.