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Hi,

Would anyone know how to best handle scenarios where you don’t want to pay the whole or a portion of AP retainage to the subcontractor?

I’m thinking of a scenario where the general contractor ends up doing a warranty repair themselves or contracting a different sub to do the work so they keep the retainage.

The release AP retainage screen allows you to do a partial release but keeps the remaining amount open. I’ve tried posting debit adjustments as well but the system does not allow referencing retainage bills.

Hi @marionmarchan75 

You need to release the retainage, which generates retainage Bill. You can create a Debit adjustment separately crediting appropriate GL account. Apply the Debit adjustment to the retainage Bill generated.

Hope this helps. 

Regards,

Thanks Vijay! The solution works. It failed our first test because there was already an unreleased payment against the retainage bill.

When you are releasing the retainage, although the system itself will suggest the whole remaining balance, the amount is editable and you can override to a lower amount and short pay as you wish.

Hi @aaghaei ,

 

We’ve tried doing that but the retainage balance remains open. In our scenario we intend not to pay the subcontractor the remaining amount and close of the invoice. 

Right, in this case, you will need to release the whole retainage and post a debit adj and offset it with the released retainage bill.

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