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How to correctly reverse project invoices with retainage and related retainage invoices ?

Laura02
Captain II
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Hello,

I am new to Construction (but not to Projects and not to Acumatica). I’m looking to confirm the steps for properly correcting customer project invoices with retainage in the below circumstances.

Here’s the situation.

  1. We created a pro forma and invoice for a regular progress billing on 5/15 and released it, creating PF = A000008 and AR doc = A000072,(retainage amount on A000072 was $766).
  2. Then we also needed to bill retainage, so we released the retainage. We released only the $766 amount (using the same date as the progress invoice) producing AR doc = A000074 and related PF = A000008.
  3. On 5/16, we released the rest of the project retainage,  $153,702. This seems to have created 2 AR docs (A000075 and 76):
  • Doc 75 has the retainage invoice amount for the $153k, but no pro forma.
  • Doc 76 is for $0 and has the pro forma with AIA doc showing $153k due, but we haven’t released it yet.

The goal here is to remove the retainage invoices A000074 and 75, as well as progress invoice A000072. Acumatica is telling us we need to reverse A000074 before reversing A000072, since the retainage is connected to it and has been released. That makes sense. But I’m concerned about the $153k invoice #75  and the related $0 unreleased invoice #76. I want to make sure that retainage also goes back into unreleased status. Just not sure where to start.

 

Thank you in advance, for any guidance you can give me. 

 

Best answer by Laura02

Hello,

The solution to this question ended up being complicated, just like the problem itself was complicated. Our client, new to Acumatica and “live” only 2 weeks at the time, made a couple mis-steps trying to correct their problem.

They had a change order come in late, after all retainage had been released, and needed to Un-release retainage, invoice the change order, release the change order’s invoice, then re-release retainage including more $$ retainage from the new change order’s invoice.

Lesson 1:  If an invoice came from a projects proforma, reverse/correct it via the proforma screen, not from AR. The customer’s misstep was attempting to reverse invoices that originated from Projects (Proformas screen) via AR Invoices screen.

Lesson 2:  Pay careful attention to dates when invoicing, reversing, correcting, releasing retainage… every step of the way, dates determine correct reporting on the AIA.

Lesson 3:  In general, reverse documents in opposite order of how they were created (Last in, First Out).

For example, if we have the following documents:

  • Invoice 1, April 30
  • Invoice 2, May 31
  • Invoice 3, June 30
  • Release retainage July 15

and on July 20 we find a Change order dated May 15 that was missed… here are the steps to reverse & correct:

  • Reverse release retainage invoice in AR with credit, date it July 15.
  • Reverse Invoice 3 via Proforma screen; date the reversal June 30
  • Reverse Invoice 2 via Proforma screen; date the reversal May 31.
  • Create corrected proforma for May 31 that includes the missing Change Order.

Then proceed forward again to recreate invoices. In our case, still learning the new system, we created a test environment so we could practice the steps and see the results, before repeating the steps with confidence in our production environment.

I hope this helps someone. I hope if I missed any detail or said something wrong…. one of you will add to this post. ;-)

Thanks to Joel & Heidi for your assistance.

Laura

 

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Laura ~ Klear Systems, Inc. Irvine, CA. ~ Click my logo to Follow me ~
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    11 replies

    Heidi Dempsey
    Community Manager
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    • Heidi Dempsey
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    • 269 replies
    • June 16, 2022

    Hi @laura01

    You are wanting to remove invoice, not correct them?  What is the case#?  I can reach out to you and set a meeting to make sure we get you to the correct end result.  You can also email me from the case @ heidi.dempsey@acumatica.com

    Chris Hackett
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    • Chris Hackett
      Chris Hackett
    Laura02
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    • Laura02
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    • June 16, 2022

    Hello Heidi, Thanks so much for your response.

    I’m not sure how to answer, “remove or release them?” 

    We are looking for the correct steps we can follow, to reverse & correct released retainage, restoring the released retainage to the AR invoices with retainage still open, then reversing the invoice that had retainage and is still open along with its related proforma.

    The customer solved the immediate problem at hand but I think this will occur again and I could not find documentation of the procedures we should be following, in Help or on this forum.  Thank you!

    Laura ~ Klear Systems, Inc. Irvine, CA. ~ Click my logo to Follow me ~
    joelhoffman
    Acumatica Moderator
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    • joelhoffman
    • Acumatica Moderator
    • 288 replies
    • June 16, 2022

    Hi Laura,

    I’d like to understand your desired results with AIA Billing and Retainage.  The dates that ProForma/Invoices/Retainage is released plays a big role in what gets printed on the AIA Report.

    We also have a Proforma “Correction” action that comes into play [In ProForma Invoice Entry > Actions > Correct Pro Forma Invoice].

    When working with AIA Documents, it’s important to utilize the ProForma Correction process, which will update both ProForma and AR.

    I’m happy to jump on a call or have additional dialogue to review the options.

    Thanks

    Joel

     

    Joel Hoffman
    Chris Hackett
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    • Chris Hackett
      Chris Hackett
    Heidi Dempsey
    Community Manager
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    • Heidi Dempsey
    • Community Manager
    • 269 replies
    • June 17, 2022

    @laura01 Did the reverse of the retainage invoice work for you?  Please let me know if you need additional assistance.

     

    Chris Hackett
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    • Chris Hackett
      Chris Hackett
    Laura02
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    • Laura02
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    • June 20, 2022

    Thank you both!  I’m planning further testing and will post back if I still have questions.

    Laura ~ Klear Systems, Inc. Irvine, CA. ~ Click my logo to Follow me ~
    Laura02
    Captain II
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    • Laura02
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    • Captain II
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    • Answer
    • June 22, 2022

    Hello,

    The solution to this question ended up being complicated, just like the problem itself was complicated. Our client, new to Acumatica and “live” only 2 weeks at the time, made a couple mis-steps trying to correct their problem.

    They had a change order come in late, after all retainage had been released, and needed to Un-release retainage, invoice the change order, release the change order’s invoice, then re-release retainage including more $$ retainage from the new change order’s invoice.

    Lesson 1:  If an invoice came from a projects proforma, reverse/correct it via the proforma screen, not from AR. The customer’s misstep was attempting to reverse invoices that originated from Projects (Proformas screen) via AR Invoices screen.

    Lesson 2:  Pay careful attention to dates when invoicing, reversing, correcting, releasing retainage… every step of the way, dates determine correct reporting on the AIA.

    Lesson 3:  In general, reverse documents in opposite order of how they were created (Last in, First Out).

    For example, if we have the following documents:

    • Invoice 1, April 30
    • Invoice 2, May 31
    • Invoice 3, June 30
    • Release retainage July 15

    and on July 20 we find a Change order dated May 15 that was missed… here are the steps to reverse & correct:

    • Reverse release retainage invoice in AR with credit, date it July 15.
    • Reverse Invoice 3 via Proforma screen; date the reversal June 30
    • Reverse Invoice 2 via Proforma screen; date the reversal May 31.
    • Create corrected proforma for May 31 that includes the missing Change Order.

    Then proceed forward again to recreate invoices. In our case, still learning the new system, we created a test environment so we could practice the steps and see the results, before repeating the steps with confidence in our production environment.

    I hope this helps someone. I hope if I missed any detail or said something wrong…. one of you will add to this post. ;-)

    Thanks to Joel & Heidi for your assistance.

    Laura

     

    Laura ~ Klear Systems, Inc. Irvine, CA. ~ Click my logo to Follow me ~
    Chris Hackett
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      KristenHanson84
    Chris Hackett
    Community Manager
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    • Chris Hackett
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    • June 22, 2022

    Thank you for sharing the solution @laura01 !

    Chris ~ Let us know how we're doing: https://forms.office.com/r/xmJUdZ1QE5 - A member helped you, please *Like* their post. A member provided an answer to your question, please mark it as *Best Answer*.
    Laura02
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    • Laura02
      Laura02
    Heidi Dempsey
    Community Manager
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    • Heidi Dempsey
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    • June 22, 2022

    @laura01 Yes you are correct.  All corrections/reversals should be done through the Pro Forma except for releasing retainage and reversing a retainage invoice, those go through AR.  Yes, the dates are very important for the AIA as this pulls from the Pro Forma table.  Always happy to have a meeting to discuss the full scenario with future issues.  Glad you got this to work for you.

    A
    Varsity I
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    • andrew15
    • Varsity I
    • 66 replies
    • January 6, 2023

    We constantly run into this.  Acumatica has too many ways to reverse an invoice, so its not very user friendly when it comes to this process.  our projects have lots of debit and credits in them because of the wrong way of reversing.  Consultants are always correcting and then we have too many different people trying to fix things to match the consultants changes and use the wrong process.

    Heidi Dempsey
    Community Manager
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    • Heidi Dempsey
    • Community Manager
    • 269 replies
    • January 9, 2023

    @andrew15  I would be happy to do a quick training for your staff to show how to reverse invoices.  Reach out to me heidi.dempsey@acumatica.com if you are interested.

    Chris Hackett
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    • Chris Hackett
      Chris Hackett
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    Varsity I
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    • andrew15
    • Varsity I
    • 66 replies
    • January 12, 2023

    @Heidi Dempsey it is only partially a training problem.  we don’t really want to train our warehouse staff or AR collections Clerk project AR with retainage.  We just run into problems every couple of months were the regular people who have not been trained in that area do a invoice reversal how they would normally do it.  This is because there are so many different processes to reverse an invoice depending on the invoice.  right now we have 5 different ways to reverse an invoice (cash sale, project without proforma, project with proforma, service order, service order with inventory, sales order) and this has been reduced with improvements to acumatica since we started on it.  We find that staff can get easily confused if they don’t deal with it regularly.  I am sure it will get better as acumatica keeps standardizing the processes.

    Chris Hackett
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    • Chris Hackett
      Chris Hackett

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