I am considering switching to using an Income account for Retention at this point... But keeping track and ensuring accuracy of the retention we need to bill for is a big consideration for us. We issues hundreds of invoices that have retention, that is why we have been using use the Retention Receivable asset account.  In fact, we use that account like a clearing house because the initial invoice for work with Retention (as a negative) posts there and then we create a separate invoice for the Retention (using positive number) and it posts to the Retention Receivable, creating "0" balance, and we use second A/R account called Retention A/R for the retention invoices.   Those invoices are future dated based on estimated completion/collection date.  That way we can run reports that show only our current A/R (excluding funds tied up in Retention). And, if there is a balance in our Retention Receivables account, then we know we missed a retention invoice.  Regardless, it doesn't solve the P&L issue, so I think we will need to come up with a new control system.  I am hoping I can figure out some kind of custom reporting that will help... Yet one more work around in QB...