cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Viol
Level 1

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

 
3 Comments
Anonymous
Not applicable

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

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
Level 1

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

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
Level 2

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

Dear MikeinBC 

Thank you for your guidance.

Can you please illustrate your reply in step by step?

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up