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Marufa0013
Level 2

Retainage value is higher than total invoice value

Hi. I am working for a construction company where in one invoice the retainage value is more than the total invoice value. Now, the problem is when I created invoice, the QBO is not accepting/not saving the invoice for the negative value. Please help me  on this. How to create the invoice with negative value or is there any other options to record the invoice with negative value?

Solved
Best answer June 05, 2020

Best Answers
ReyJohn_D
Moderator

Retainage value is higher than total invoice value

Thanks for the details, @Marufa0013.

 

You have two options on how to record these amounts successfully in QuickBooks Online (QBO).

 

 First off, if you received the payment from a customer for $21000, and the invoice is only $18000, you can just record the payment amount. This will give you a balance of $-3000 for that certain customer. This way, it can apply to future invoices.

 

However, you can use Credit memo suggested by my peer @Rejeil_O if this retainage came from a period unrecorded in QBO where you just started this year and last year's record isn't in QBO and serve as opening balance.

 

Once done with the steps, you have the option to customize your reports in QBO. Just follow this useful article so you can be guided on how to do it. It contains the steps on how to filter it so you can get the info you need for your business: How to customize my reports in QBO?.

 

Please know that I'm just here in the Community in case you need more help with your invoices in QBO. Take care and stay safe.

View solution in original post

4 Comments
Rejeil_O
QuickBooks Team

Retainage value is higher than total invoice value

Hi there, @Marufa0013.

 

Let me share with you some of my ideas on how to help you fix your concern. In QuickBooks, we're not able to enter a negative value in the invoice. Since your goal is to enter a negative invoice value, you can create a credit memo. Credit memo act as a source document for the sales return journal. You can follow these steps on how to create a credit memo. Here's how:

 

  1. Click the Plus icon
  2. Under the Customer column, select the Credit Memo tab.
  3. Choose the customer name.
  4. Enter the Credit Memo Date.
  5. Fill in the necessary information.
  6. Click Save and close.

 

Once done creating a credit memo, you can create the invoice and enter the total invoice value. After that, apply the credit memo to the invoice that you've created. Follow these steps:

 

  1. Go to the Sales tab, and select Customer.
  2. Look for the customer where you want to apply the credit memo.
  3. Locate the invoice and click the Receive Payment in the invoice section.
  4. Enter the necessary information on the Receive Payment window.
  5. Make sure that the correct invoice is selected in the Outstanding Transactions section.
  6. Click Save and close.

 

In case you'll need help pulling up the credit memo report, you can use this link for the steps: Can I generate a credit memo report to track all credits in the account.

 

If you have additional questions, just let me know. I'll be happier to help. Take care and have a wonderful day!

Marufa0013
Level 2

Retainage value is higher than total invoice value

Hi. Thank you very much for your suggestion. I am sorry to miss one information in the query. In the invoice the retainage value is for $21,000 and invoice value is for $18000. Now, how can I solve this? Does it applicable on credit memo posting in qbo? Thank you in advance.

ReyJohn_D
Moderator

Retainage value is higher than total invoice value

Thanks for the details, @Marufa0013.

 

You have two options on how to record these amounts successfully in QuickBooks Online (QBO).

 

 First off, if you received the payment from a customer for $21000, and the invoice is only $18000, you can just record the payment amount. This will give you a balance of $-3000 for that certain customer. This way, it can apply to future invoices.

 

However, you can use Credit memo suggested by my peer @Rejeil_O if this retainage came from a period unrecorded in QBO where you just started this year and last year's record isn't in QBO and serve as opening balance.

 

Once done with the steps, you have the option to customize your reports in QBO. Just follow this useful article so you can be guided on how to do it. It contains the steps on how to filter it so you can get the info you need for your business: How to customize my reports in QBO?.

 

Please know that I'm just here in the Community in case you need more help with your invoices in QBO. Take care and stay safe.

View solution in original post

Teri
Level 9

Retainage value is higher than total invoice value

 Hi @Marufa0013 -

 

I suggest take a step back to make sure this is correct before returning money to your customer.

Retention or retainage (same thing), as you know is withholding from customer billing a certain

amount, usually a % of total to be billed at the end of the job once all of the work has been done.

So you are correct to question why it would result in a negative invoice and I would check first:

 

- What is the retention % supposed to be? 

- How did you determine amounts on invoice?

- Is that something you calculated or was amount given to you?

- Same for retention, did you compute that amount or was amount given to you?

- The only way that would be correct is if a previous invoice did not have enough retention.

- Suggest compare the total of all invoices on that job and check if the retention is correct for total.

 

 

 

 

 

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