[AR] Accounts Receivable Release Retainage

The AR Release Retainage form lets you release amounts previously withheld from customer payments.

Key Points:

• Can release retainage for all invoices of a customer or a specific contract

• Only applies to invoices entered directly in AR (not from Job Billing)

• Retainage is applied at the item level, but release occurs at the invoice level

How It Works

• Select a customer to see all related invoices

• Optionally filter by JC Company or Contract

• The system automatically allocates released amounts to each item

Methods of Releasing Retainage

Manual Release:

• Enter a release percentage or specific amount per invoice

• Adjust amounts at the item level using Release Details

Automatic Release of Retainage

• Turn on Auto Calculate Release Retainage

• Select a cutoff date

• Choose a calculation method:

  1. Percentage Method:

     • Applies the same release percentage to all invoices

     • System allocates released amounts to items automatically

  2. Amount Method:

     • Releases a specific total dollar amount

     • Starts with the oldest invoice and continues until the total is used

System Actions After Retainage Release

• A credit transaction is created for the total release amount, linked to the original invoice lines

• The system generates one AR invoice summarizing all released retainage

• After batch processing, the invoice is available for printing via the AR Invoice Report

Summary:
The AR Release Retainage process automates or guides manual release of retained funds, ensuring correct allocation, documentation, and reporting.