Invoicing based on percentage of completion with 10% retention deducted on the invoice which is payable after the warranty period?

Viol · ‎November 04, 2018

Anonymous · ‎November 09, 2018

Retention/Holdback accounting - There is more than one way to accomplish this.

Create a Retention receivable account (current asset), and a Retention item which links to that gl account.

Then add the retention item to the bottom of your invoice as a (negative) amount. - This can be done when you first create the invoice - or be added after the customer pays 90%.

At the end of the warranty period issue an invoice using only this item for the amount due.

Check on you local rules for the sales tax rules on the holdback - it may or may no be a taxable item.

lhjmq · ‎December 20, 2018

How would you bill the amount at the end? Wouldn't the holdback amount (and by extension the invoice amount) be negative?

I'm having the same issue. I can just create a new line and bill the holdback but I'd like to issue a holdback invoice through the Estimate that I created initially.

Waqar Ahmad · ‎March 17, 2019

Dear MikeinBC

Thank you for your guidance.

Can you please illustrate your reply in step by step?

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Invoicing based on percentage of completion with 10% retention deducted on the invoice which is payable after the warranty period?