Managing retensions

Question asked by Andrea Quinn 6 years ago

Can anyone offer any assistance as to the best way to manage retentions? The majority of our invoices have a 5% retention value meaning that if i post the full value for each invoice the retention is always left as an outstanding amount. Thanks

2 Replies

  • Issue the invoice as normal.
  • Mark the 95% payment as normal.
  • Credit note the 5% retention.
  • Create a new customer called Retentions - Customer X
  • Issue a new invoice representing the 5% retention
  • Make sure you actually chase payment of the retention - it's not their god given right to keep it [although most contractors do seem to think it is!]

I have implemented this - a logical solution, many thanks for your help Kevin & yes, getting it back is always the challenge but hoping this will help me to remember!

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