How do I set up a Retention item for invoicing and how do I sub total my invoices so retention can figure

Good day to you, @debbiesinger.

You’ll need to create a Retention account and item so you can apply it to an invoice. Then, customize your invoice template to show the subtotal of the retention. I’d be glad to guide you through the steps.

To create a retention account in QuickBooks Online (QBO):

1. Go to the Accounting menu and select Chart of Accounts.
2. Under the Chart of Accounts tab, click New.
3. Select the Account Type drop-down arrow, then choose Other Current Assets.
4. Click the Detail Type drop-down arrow, then choose Retainage.
5. Enter a desired name.
6. Click Save and close.

To create a retention item:

1. Navigate to the Gear icon.
2. Choose Products and Services.
3. Click New, then choose Service.
4. Enter the desired name.
5. Put a check mark in the I sell this product/service to my customers box.
6. Select the Income account drop-down arrow, then choose the Retainage account you've created.
7. Click Save and close.

Once done, you can now add the retention to your invoice. Then, to add subtotals to your invoice, you can follow these steps below:

1. From your Invoice, click Customize.
2. Select Edit current to edit the template you use.
3. Click the Content tab and click the table section on the previewed invoice on the right.
4. Simply click the Show more activity options link in the lower-left hand corner. 
5. Put a check in the Group activity by and Subtotal groups check boxes.
6. Then click Done.

You can also read through this article for more details in personalizing your invoice: Customize invoices, estimates, and sales receipts in QuickBooks Online.

I’ve also added this article for future reference in case you’ll want to import your invoices in QBO: Import custom form styles for invoices or estimates.

I’ll be around if you have other concerns or questions in adding retention to your invoice. Leave a reply below and I’ll answer it for you. Have a great day ahead.