Retainage tracking lets you hold and release retainage across AR and AP, automate retainage on Purchase Orders and Bills, and monitor totals in your Budget.
1) Access and Enable Retainage
To enable retainage tracking:
Go to General Settings.
Set a default retainage cost code to track all held and released retainage.
Important: Select a cost code connected to both an income and an expense account to track retainage across AR and AP.
Optional: Set a standard retainage rate. You can edit this rate later on a one-off basis.
2) Configure Purchase Orders for Retainage
To set retainage on a Purchase Order:
Create a new Purchase Order.
Ensure Hold Retainage is checked; it will default to the rate from General Settings.
To exclude a subcontractor, uncheck Hold Retainage on that PO.
To use different rates per line, adjust the rate on the line item (e.g., for a change order added as a new line).
You can:
Send the PO for subcontractor review and signature, or
Download the PO to see retained amounts per line in the PDF export.
Note: The retainage rate on the PO does not change the total amount of the PO.
3) Apply Retainage When Recording Bills
To apply retainage from a subcontractor Bill:
Upload the Bill and link it to the configured Purchase Order.
A line is automatically added coded to your default retainage cost code.
The amount is calculated as: retainage rate on the linked PO × cost on the Bill.
The cost line remains whole so the full cost appears in your Budget; the payment is net retainage.
AIA-style Bills: The retainage amount is automatically read from the Bill and the retainage line is set without needing to link a PO.
4) Manually Hold or Release Retainage (Without POs or for Adjustments)
To manage retainage manually:
Add a line coded to the default retainage cost code; it will count toward retainage held on the project.
To hold retainage, add a negative retainage line.
To release retainage, add a positive retainage line.
Important: Lines coded to the default retainage cost code are marked Not Billable and will not be added to a draw.
5) Monitor Retainage in the Budget
To see total retainage on a project:
Open Budget.
Filter to your default retainage cost code.
Open the Actual Cost to Date dialog to view the total of all Bill lines coded to the default retainage cost code.
6) Summary of Key Requirements
Set a default retainage cost code in General Settings.
That cost code must be connected to both an income and an expense account.
Retainage rates can be set globally and adjusted on PO line items or via Bill entries.