Using retainage for project billing

Retainage is the percentage of the invoice amount that a client holds back against the verification and quality of work completed. The accumulated retainage is typically paid after the verification of project work is done. It reduces the overall amount due for the project. The clients pay the total or accumulated retainage amount later when either the project is completed and they have signed off on the completed project.

You can set the retainage percentage in the Projects > Billing Options tab. It is then transferred automatically to the Invoices > Create Invoice screen where you can apply the retainage on the invoice. To set up retainage:

  1. From the main menu, open the Projects screen.
  2. Select a project on the grid and click View Details under the row-action menu.
  3. On the Settings > Billing Options tab, under the Tax, Retainage, & Retainers section, provide a percentage in the Retainage field.
  4. If you want to provide a maximum retainage amount, uncheck the No Limit option and provide an amount. When this amount is reached for a project, the full invoice amount is due from a client.
  5. Click Save & Done. 

CORE then computes the invoice amount as:

Amount Due = Services Billed + Expenses Billed + Taxes – Applied Retainer – Discount – Retainage

For example, if Total Bill Amount = $1000, Calculated Retainage = $50,

Amount Due After Retainage = $1000 - $50 = $950

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