Sage Intacct has added the ability to handle retainage in the Construction edition.  Below are the steps to set up Retainage in your system.

Accounts Receivable Retainage

In the Accounts Receivable Module, under Configuration, Enable AR Retainage and choose the correct General Ledger Account and Invoice Number Sequence.  We do recommend a dedicated AR Account for Retainage.

Screen shot of Accounts Receivable module
Enable AR Retainage

Under the Customer, enter the default Retainage Percentage for the Customer.

Screen shot of customer page in Sage Intacct
Default Retainage Percentage on customer page

Under the Transaction Definition in the Order Entry Module, make sure you “Enable Retainage” under this screen.

 

Screen shot of transaction definition Screen
Transaction Definition in the Order Entry Module

When you create the Invoice, the default retainage percentage will come over and each line of the invoice will retainage percentage.

Screen Shot of Retainage - Invoice screen
The Default Retainage Percentage

Upon running the AR Ledger, you will also see the Retainage Held.

Screen Shot of AP Retainage held
AR Retainage Held

When you are ready to release the AR Retainage, you do this with the Retainage Menu option within the Accounts Receivable Module or Project Module.

Screen Shot of AP Ledger releases
AR Ledger releases

When in this screen press the “Add” Button, and selection the Release Date and click “Save and Continue”.

Screen shot Release Date for Retainage
Release Date

Click on the “Add” Button under the Details area and select the invoices that contained retainage you want released.  Make sure to click “Add Selected”.

Screen shot of AR Releasable Retainage Records
AR Releaseable Retainage Records

Upon selection, click on Release Retainage.  This will generate an Accounts Receivable Invoice.

Screen Shot of Accounts Receivable Invoice
Accounts Receivable Invoice

Accounts Payable Retainage

In the Accounts Payable Module, under Configuration, Enable AP Retainage and choose the correct General Ledger Account and Bill Number Sequence.  We do recommend a dedicated AP Account for Retainage.

Screen Shot Enable AP Retainage Accounts Payable Screen
Enable AP Retainage Accounts Payable Screen

Under the Vendor, enter the default Retainage Percentage for the Vendor.

Screen shot of Vendor screen where to insert default retainage
Vendor screen where to insert default retainage

Under the Transaction Definition in the Purchase Order Module, make sure you “Enable Retainage” under this screen.

Screen Shot of transactions definition in the purchase order Module
Transactions Definition screen in the Purchase Order Module

When you create the Purchase Order and Invoice, the default retainage percentage will come over and each line of the invoice will  show the retainage percentage.

Screen shot of a Vendor Invoice created showing retainage percentage
A Vendor Invoice created showing retainage percentage

Upon running the AP Ledger, you will also see the Retainage Held.

Screen Shot AP Ledger
AP Ledger showing Retainage Held

When you are ready to release the AP Retainage, you do this with the Retainage Menu option within the Accounts Payable Module.

Screen Shot of AP Retainage release
AP Retainage release in the Retainage Menu

When in this screen press the “Add” Button, and selection the Release Date and click “Save and Continue”.

Screen shot of AP Retainage Release in Sage Intacct
AP Retainage release screen in Sage Intacct

Click on the “Add” Button under the Details area and select the invoices that contained retainage you want released.  Make sure to click “Add Selected”.

Screen shot of AP Releaseable Retainage Records
Select the invoices that contained retainage you want released

Upon selection, click on Release Retainage.  This will generate an Accounts Payable Bill.

Screen Shot of Accounts Payable Bill
Resulting Accounts Payable Bill