Does anyone know how to include retainage on an invoice or for a customre?

Hi there, @mbrabston2.

Let me guide you on how to invoice retainage for customers.

You can set up a deposit or retainer process for your company in QuickBooks Online. To do this, you need to create a liability account so that it'll be easier to track your retainers.

Here's how:

1. Click on the Gear icon, select Chart of Accounts.
2. Select New.
3. Under the Account Type drop-down list, select Other Current Liabilities.
4. Under the Detail Type drop-down, choose  Trust Accounts - Liabilities.
5. Enter a name for the account or accept the suggested name.
6. Select Save and close.

To do this, follow these in creating a service item for retainers:

1. Click on the Gear icon, select Chart of Accounts.
2. Select New.
3. From the Product/Service information panel, select Service.
4. Enter a name for the new product or service item (for example, Retainer).
5. From the Income Account drop-down list, select Trust Liability Account.
6. Select Save and close.

Once done, you can now create invoices for customers. 

Here's how to do it:

1. Click on the Plus icon (+) on the Toolbar.
2. Under Customers, select Invoice.
3. Select the Customer name from the drop-down list.
4. In the Product/Service column, select the Retainer or Deposit item you set up.
5. Enter the amount received for the retainer or deposit in the Rate or Amount column.
6. Select Save.

Please read this article for more details on retainers: How to Record a Retainer or Deposit?

Feel free to leave a comment below if you have any other concern. Have a wonderful day!

Retainage is your Other Current Asset, if you are an accrual basis entity. Otherwise, it is a reduction of Income now, for being income later. Make a Service or Other Charge item for this. linked to Other Current Asset or Income (whatever meets your accounting requirement). Name them both Customer Retainage.

Use the Retainage item with a Negative on the invoice or sales receipt. This reduces the amount the customer owes, as an amount you will collect from them later.

Later, you use that on an invoice or sales receipt to show it is now Earned by you and that it is yours to keep.

A retainer (deposit) is not at all the same thing in the construction industry.  Retainage is an amount withheld from a monthly progress invoice, usually 10% of said invoice, and paid at the end of the project.

A retainer (deposit) is something completely different from retainage.  In the construction industry retainage is an amount, usually 10%, withheld from monthly progress billings and then billed at the end of the project.

Did anyone get a correct answer on this? How do you show a retention held on a progressive invoice?

I'll walk you through the process of how to show retention on your invoices in QuickBooks Online (QBO), MDoorsKJ.

In QuickBooks Online, we can apply retention to an invoice by creating a retainage item and retainage receivable account as its income account. Then, manually add it to the invoice as another line item.

Create a retainage account: 

1. Go to the Gear icon and select Chart of Accounts.
2. In the Chart of Accounts, click New
3. Select Other Current Assets from the Category type dropdown.
4.  Select Retainage from the Detail Type dropdown.
5. Enter Retainage Receivable under the Account name. 
6. Once done click on  Save.

Create a retainer item:

1. Go to Sales from the left menu and click on the Product and Services tab. 
2. In the Products and Services window, click New.
3.  Enter a Name for the item (i.e. Retainage).
4.  Under Sales Information, place a checkmark next to I sell this product/service to my customers.
5.  Select the Retainage Receivable account from the Income Account drop-down.
6.  Click Save.

To invoice customers:
 

1. Click the +New.
2. Select Invoice under Customers. 
3. Select your customer.
4. Fill out the remaining fields of the invoice, including the purchased line items.
5. On the next available line of the invoice, select Retainage from the Product/Service column.
6. In the Rate column, enter the amount of the retainage as a negative (-) number.
   Note: If your retainage is a percentage, you must calculate this manually.
7. Click Save and Close.

You can read through this article for more detailed steps: Record a retainer or deposit.

If you have other questions regarding Employee Retention Credit, just reply here or start a new thread and I'll help you out. Take care.