Retainage Accounting for Job-Related Receipts and Invoices

If you use retainage accounting in Accounts Payable, you can specify retainage options for job-related transactions in Purchase Orders.

When you select the retainage accounting option on a job-related receipt, invoice, credit note, or debit note, the program displays:

• Retainage fields for each detail line, letting you enter a different retainage percentage or retainage amount and retention period for each detail line in the document. (By default, these settings come either from the vendor record or from the category to which you assign the cost.)

• A Retainage tab, where you specify retainage terms and, in a multicurrency system, the type of exchange rate to be used when you process outstanding retainage.

Reporting Tax on Retainage Documents

Sage ERP Accpac lets you specify when to report tax on retainage amounts to meet the requirements of your tax jurisdictions.

For example, in Canada, you report the GST for a retained amount when you issue the retainage invoice.

You can choose from three options when you set up Tax Authorities in Tax Services:

No Reporting

At Time of Retainage Document

At Time of Original Document