Setting up Subcontract Retention
Subcontract Retentions allows you to set up a Retention Percentage on Subcontracts to withhold a portion of the amount paid to Subcontractors on their invoices until the contract is satisfactorily completed.
Navigate to the Role Center > Subcontract > Subcontracts and select a Subcontract.
In the Subcontracts Details FastTab in the Subcontract Card, select a line and scroll to the Retention Method.
Set the value to Total and then enter a Retention percentage in the Percent field..
When a Subcontract is set up, specify the Retention Method on the line item. Options are:
None: No Retention will be withheld or calculated.
Total: Specifies to calculate Retention Total by percent.
Use the Percent field to enter a percent value which specifies the percentage of the line subcontract amount to be retained when entering payment requests for the current subcontract.
Important
The percent you enter in this field specifies the percentage to withhold from a payment amount on a subcontract purchase invoice. The retained amounts are accumulated in a Retention account until you use Subcontract Retention to pay the retained amounts to the subcontractor.
Create a payment with subcontract retention
If a subcontract includes a retention percentage (as mentioned in the previous section), when you use Subcontract Payment Requests to create a payment request, it will automatically deduct the retention percentage specified from the amount requested in Subcontract Payment Requests.
When completing the Payment Request Details in Subcontract Payment Request, the percent entered in the Retention field is automatically deducted from the Requested Amount, thereby reducing the Net Pay Amount.
Note
For example, in the Payment Request Details fast tab, if the Requested Amount = $100.00 and the Retention is set to 25%, the Net Pay Amount will be $75.00.