Invoice Retention (Retainage) on Aging

Overview

Some customers hold back part of an invoice (retainage) until the job is finished. That leftover balance is still owed, but it is not collectible yet like a normal past-due amount.

You can mark those open invoice balances as retention. ERP then shows them in a separate Retention column instead of the regular aging buckets (Current, 30, 60, 90, etc.). That makes it easier to see what is truly past due versus what is held as retainage.

How to mark money as retention

There are two ways to mark an invoice as retention.

Option 1 — From Open Balance Activity (best for one or many invoices)

1. Open Accounting → Collection, or open the customer under Sales → Customer.
2. Select the customer.
3. Go to Open Balance Activity grid (the list of open invoices and balances).
4. Select the invoice(s) whose remaining balance is retention.
   You can select one invoice or several at once.
5. Right-click and choose Add as Retention Aging.

The remaining open balance on those invoices now appears under Retention instead of the standard aging columns.

To remove retention this way: select the invoice(s) → right-click → Remove from Retention Aging.

Option 2 — From the invoice information window (one invoice at a time)

1. Open the invoice (for example, from Open Balance Activity, Billing, or another invoice list).
2. In the invoice information area, find Retention Aging.
3. Check Mark as Retention.
4. Save the invoice.

To remove retention this way: open the invoice, clear Mark as Retention, and save.

Important notes

• Is Retention column on Open Balance Activity grid is for display only. It shows whether an invoice is already marked as retention. You cannot click that checkbox to turn retention on or off.
• Only invoices can be marked as retention. Credit memos and debit memos cannot.
• When the customer pays the remaining balance in full, the retention flag clears automatically, and the Retention amount returns to $0.

Where retention appears

After invoices are marked:

• Collections and related account summary views show the open amount in the Retention column.
• Those amounts are no longer mixed into the normal aging buckets used for day-to-day collections follow-up.

Running aging reports with retention options

To include, exclude, or show only retention on AR aging reports:

1. Open Report Central.
2. Choose AR Aging.
3. Select the report type you need (for example Summary, Detailed by Customer, etc.).
4. Set Retention Filter to one of:
   • Including Retention — open balances and retention together (default)
   • Excluding Retention — open balances only; retention left out
   • Retention Only — retention balances only
5. Run the report.

Printing a retention-only statement for a customer

1. In Collections (or Customer), go to Open Balance Activity grid for the customer.
2. Filter the grid so only rows with Is Retention checked are shown.
3. Run Open Balance Reports → Detailed: Filtered.

That prints the filtered list — useful when you want a statement focused on retention amounts owed.

FAQ

Why don’t I see amounts in the Retention column?
The invoices must be marked first with Add as Retention Aging. The Retention column only shows balances you have marked.

Can I mark several invoices at once?
Yes. Select multiple invoices in Open Balance Activity, then right-click Add as Retention Aging.

Where is the Retention Filter?
In Report Central, under AR Aging. It is not on the Collections screen itself.

Does this change anything if we don’t use retainage?
No. If you never mark invoices as retention, aging behaves as before.