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Anonymous
Nov 4, 2018 11:06 AM UTC

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

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    3 replies

    Anonymous
    Nov 9, 2018 6:01 PM UTC

    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
    Dec 20, 2018 3:01 PM UTC

    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. 

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