AR Retainage Tracking allows you to automatically calculate, hold, and monitor retainage amounts on your draws while maintaining clear visibility in both Adaptive and QuickBooks.
1. Enabling Retainage in General Settings
To activate retainage tracking:
Navigate to General Settings
Locate the Retainage section
Set a default cost code for tracking held and released retainage
Choose a cost code connected to both an income and expense account
This prepares the system for both AR and AP retainage tracking
Optionally, set a standard retainage rate (can be adjusted per job)
Important: The cost code selection is critical for proper tracking across all retainage transactions.
2. Setting Up Retainage on a New Job
After adding or importing your budget:
Go to the Draws tab
Create your first draw
In the Draw Summary tab, click the pencil icon to adjust retainage rate
Alternatively, access via the Draw Schedule tab by clicking the pencil in the retainage column
Configuring Retainage Rates
To set rates:
Choose between single rate (applies to all lines) or variable rates (different rates per line)
For variable rates, you can exclude specific lines (e.g., fees or markup lines)
Check "Applied to new lines" to automatically apply the rate to future budget lines
3. Creating Draws with Retainage
When drawing for completed work:
Update progress by:
Increasing percent complete
Marking total completed in this period
Adding material stored amounts
The system automatically calculates:
Retainage amount based on total completed to date × retainage rate
Updates to summary totals
Line items for the invoice that will sync to QuickBooks
Understanding the Draw Views
Draw Schedule tab: Shows familiar AIA-style invoice columns with retainage calculations
This Period tab: Displays invoice lines that sync to QuickBooks with price, retainage held, and payment due
Summary tab: Provides overview with customizable export settings
4. Exporting and Syncing Draws
Export Settings
In the Summary tab, you can:
Set a default description (auto-fills for future draws when "Set as Default" is enabled)
Configure e-signature to append signature with timestamp on exports
QuickBooks Integration
When syncing to QuickBooks:
Retainage is separated into its own line
Coded to your default retainage cost code
Provides clear visibility of held amounts and expected revenue
PDF Export
The exported PDF includes:
Summary information reflecting the Summary tab
This Period details showing price, retainage held, and payment due
Complete draw schedule matching the in-app view
5. Budget Impact and Tracking
After creating draws with retainage:
The Drawn to Date column updates with total drawn amounts
Total Retainage Held displays accumulated retainage
Both values are visible in the budget view
6. Setting Up Retainage on Existing Jobs
For jobs with existing draws created before enabling retainage:
Go to Job Settings
Enable "Hold AR Retainage on this job"
When creating the next draw, a blue banner will appear
Click "Yes, set retainage rate"
Distributing Previously Held Retainage
Confirm current held amount:
If tracked in Adaptive, the system pre-fills from your default retainage cost code
Otherwise, manually enter the total retainage held to date
Allocate the held amount:
Split evenly across all budget lines, or
Assign to specific lines (exclude fees, markups, or undrawn lines)
Set future retainage rate:
Configure single or variable rates for ongoing draws
Note: After setup, the Draw Schedule will show properly allocated retainage and apply the configured rate to future draws.
Key Requirements Summary
Cost Code: Must be connected to both income and expense accounts
Job Settings: "Hold AR Retainage" must be enabled per job
QuickBooks: Retainage syncs as separate line items for clear tracking
AP Retainage: Support for purchase orders and bills is not yet available