Sales Retainage Setup and Processing
Open the link to review the Sales Retainage Data Migration process.
Configure General Posting Setup
Sales accounts need to be input into the General Posting Setup (highlighted). Depending on what you sell, you can choose a dedicated account. In our example, the builder is selling houses using GL account 30100, and other revenue will be recorded in 30200.
Customer Posting Groups must have a Retainage Control Account specified:
Generating a Sales Invoice with Retainage Lines
Note
To Generate a Sales Invoice with Retainage Lines you must be subscribed to SuiteEngine Sales Retainage. For details of the installation, read Install From AppSource
- To Generate a Sales Invoice with Retainage Lines, search Sales Invoices, pick a Customer, and complete the invoice. In the example below, you sell 1 Item of value 1000 with 13% HST. You setup retainage at 10%.
- Now go to Process and select the Create Retainage Lines Action Button. The system is going to create a Retainage Line:
- The GL Posting Preview is as follows:
The full 1,000 amount is accounted for as revenue in the GL Account 30200.
12010 is the AR- Holdbacks/Retainage account showing 10% x 1000 = 100
23050 is the HST Collected account, that has the full 1000x 13%= 130 as a Credit and 100 (Retainage) x 13%= 13 as a Debit.
Regular AR account – 12000- shows $1017, which is:
- 1000-10% Retainage is 900
- HST is: 13% x1000 =130
- Subtract HST that will be part of the Retainage: 10% x130=13
- Finally: 900+130-13=1017
To view Customer Ledger Entries, on the Customer Card, go to Customer then Ledger Entries.
- Values pertaining to Retainage are clearly displayed on the Customer Ledger Entry. To view Customer Retainage Entries, on the Customer Card, go to Process and click on Customer Retainage Entries:
- When the time comes, search Release Sales Retainage, select the lines you want to release, and hit Release Selected Invoices:
- This Action will produce a posted Sales Invoice. This will result in a new posted Sales Invoice visible in Customer Ledger Entries:
- The $100 retainage amount disappeared from the original line.