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Anonymous
November 4, 2018

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

  • November 4, 2018
  • 3 replies
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    3 replies

    Anonymous
    November 9, 2018

    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
    December 20, 2018

    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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