AR Retainage Tracking
AR Retainage Tracking helps you calculate, hold, release, and track retainage on draws while keeping retainage visible in Adaptive and QuickBooks.
1. Enable Retainage in General Settings
To turn on retainage tracking:
Go to General Settings.
Find the Retainage section.
Select Enable retainage.
Choose a Default cost code.
Optional: select Set default rate on draws and enter a default AR retainage rate.
Important: For AR retainage, the default job cost method must be a cost code. Accounts cannot be used as the default retainage code when AR retainage is enabled.
Note: Changes to the default cost code or default rate apply to draws created going forward.
2. Enable Retainage on a Job
After retainage is enabled in General Settings, turn it on for each job where you want to hold AR retainage.
Open the job.
Go to Job Settings.
In the Retainage section, turn on Hold AR retainage on this job.
Choose a Retainage calculation mode:
Cumulative (AIA style): Maintains the retainage percentage across all draws.
Per draw: Applies retainage only to the new amount billed on each draw.
Note: If the retainage setting is disabled, confirm that a default cost code has been selected in General Settings.
3. Set the Retainage Rate on a Draw
After creating a draw, set the retainage rate from either:
The Summary tab, by clicking the retainage edit icon.
The Draw schedule tab, by clicking the pencil icon in the Retainage column header.
In the Set retainage rate dialog, choose one of the following options:
Single rate: Applies one retainage rate to all eligible lines.
Variable rates: Lets you set different retainage values by line.
For variable rates, you can:
Search for lines by cost code or account.
Select multiple lines and use Actions to apply a fixed or dynamic rate.
Use a Dynamic rate to calculate retainage as a percentage.
Use a Fixed rate to enter a specific retainage amount.
Select Set rate to apply to new lines to apply a rate to future lines.
Note: Some lines may need to be edited from the This period tab. If a line is disabled, Adaptive shows the message: “Go to the This period tab to adjust the retainage rate.”
4. Create Draws with Retainage
When preparing a draw, update progress as usual:
Enter This period amounts.
Update percent complete where applicable.
Add materials presently stored when needed.
Add or update markup lines if applicable.
Adaptive calculates retainage based on the job’s calculation mode and the retainage rates on the draw.
The draw includes three main views:
Summary: Shows draw totals, retainage totals, export fields, and signature options.
This period: Shows the invoice lines that will sync, including price, retainage, and payment due.
Draw schedule: Shows the AIA-style schedule with retainage and cumulative draw totals.
5. Export or Sync the Draw
From the draw, you can export the draw package or sync the draw to QuickBooks.
When syncing to QuickBooks:
Retainage is created as its own line.
The retainage line uses your default retainage cost code.
Payment due reflects the draw amount less retained amounts.
Before syncing, make sure retainage has been set on the draw if Adaptive shows the retainage prompt.
6. Track Retainage on the Budget
After draws are created, Adaptive updates the budget to show retained amounts.
Retainage tied to the default retainage cost code is visible in budget totals, including:
Actual costs
Drawn to date
Retainage-related draw totals
Budget lines using the default retainage cost code are treated as retainage tracking lines. You can view held retainage on those lines, but you cannot add a budget to them.
7. Set Up Retainage on an Existing Job
If a job already has draws before AR retainage is enabled:
Go to Job Settings.
Turn on Hold AR retainage on this job.
Create the next draw.
When prompted with Are you holding retainage on this project?, click Yes, set retainage rate.
Adaptive walks you through three steps:
Confirm previously held retainage amount
Adaptive prefills the amount already coded to your default retainage code when available. Confirm or edit the amount.Distribute your previously held retainage
Choose whether to Split evenly across lines or assign retainage to Specific lines.Set retainage rate for future draws
Choose a single rate or variable rates for future draws.
If you enter $0 as previously held retainage but apply a future rate, Adaptive can also apply that rate to previous draws to keep totals consistent.
8. Release Retainage
When retainage is ready to be released, open the draw and use Release all retainage in the retainage rate dialog.
Adaptive creates positive retainage amounts to release previously held retainage and updates the payment due accordingly.
Key Requirements
Retainage must be enabled in General Settings.
A default retainage cost code is required for AR retainage.
Hold AR retainage on this job must be enabled in Job Settings.
Each job should use the correct Retainage calculation mode before draws are created.
Retainage rates can be set as a single rate, variable rates, dynamic percentages, or fixed amounts.
QuickBooks sync uses the default retainage cost code for retainage lines.
Related articles: Building a Draw - Cost-Based or Cost Plus, Building a Draw - Percent (%) Complete, Creating and Managing Purchase Orders (POs), Labor Tracking, AP Retainage.
If you have any questions or want to share feedback, feel free to reach out at [email protected].