[AR] Clearing Positive and Negative AR Retainage that Nets to Zero

Use a zero-dollar AR Cash Receipt to offset retainage that nets to 0.00. Retainage is handled at the item level, and released retainage may not always clear previous amounts.

Steps

1. Create a Zero Cash Receipt:

   • Go to AR > Programs > AR Cash Receipt Batch for the month you want to clear.

   • Enter Customer, Transaction Date, Amount = 0.00, and Deposit # (won’t post to Cash Management if 0.00).

   • Click the blue chevron to save and move to open invoices.

2. Select Unpaid Retainage:

   • Menu → Options → Show Open Invoices: Unpaid Retainage.

   • On the invoice line, select the first invoice with unpaid retainage.

3. Apply Retainage:

   • In the Total Applied field, press Ctrl-G to auto-populate unpaid retainage amounts.

   • Or manually:

     • Click Payment Detail.

     • In Apply Retg, enter the unpaid retainage amounts line by line (check Unpaid Retg for amounts).

     • Use arrow keys to navigate between lines.

   • Repeat for all invoices with retainage.

4. Handle Warnings:

   • If you see “Applying payments to unreleased retainage…”, you can ignore it. This is normal when cleaning up released retainage.

5. Finalize the Batch:

   • Ensure the batch total = 0.00 and To Apply = 0.00.

   • Click File → Process, Validate & Post.

6. Verify:

   • Run the AR Aging Report. Retainage should now be cleared.

   • If some invoices still appear open, re-enter them in AR Cash Receipts as needed.

This process ensures all item-level retainage is cleared and nets to zero in AR.