About unitary billing retention

Many job contracts include retention. While you include the retention on the billings, payment is not due until you complete the project. In the Unitary Billing Setup window, you can set the retention rate.

When you calculate a unitary bill the first time, Sage 100 Contractor inserts the retention rate for completed work in the Ret. Rate column for all line items, then it calculates the retention. If the retention rate differs between line items, you can enter the individual rates in the appropriate Retention Rate cells. If you leave a Ret. Rate cell blank, Sage 100 Contractor does not compute the retention for that particular line item.

To change the retention rate for the entire project, first change the rate in the Retention Rate box in the Unitary Billing Setup window. Then change the rates in the Ret. Rate column and recalculate the unitary bill. If you lower the rate of retention, you effectively release a portion of the retention previously withheld.

Posting an invoice declares the gross amount of the invoice as income. However, a percentage of the gross amount is withheld as retention, so the client is actually billed for the net amount (gross invoice amount – retention = net invoice amount). Therefore, retention is already declared income but is not yet due. Consequently, Sage 100 Contractor does not include retention in the invoice aging, and does not apply finance charges to it.

When you are ready to bill the client for retention, it is not necessary to create a new invoice. The retention has already been declared income, so you simply release the retention in both unitary billing and accounts receivable. You can release retention on each invoice individually, or you can release the retention for the entire job at one time. You can then send the client a statement reflecting the amount that is due your company.