Flexible retainage release calculation and error handling

Flexible retainage release allows you to release retainage across all invoice lines associated with a primary document (purchase order or subcontract).

The flexible retainage release process applies a percentage that you enter to each invoice line in the batch:

  • This percentage is a minimum percent to release across all lines holding retainage.

  • The amount that's released for a line is based on the total retainage withheld for that line, not the total retainage remaining on the invoice.

How the calculation works

Sage Intacct calculates the retainage release amount for a line as follows:

(Percent entered * Retainage held per line) - Retainage previously released per line

How per line percentages work

The following scenarios illustrate how Sage Intacct handles the percent you enter for flexible retainage release.

  • Scenario A: Retainage not yet released: If you have not yet released retainage for any invoice lines, the percent you enter is the percent of retainage released per line.

    Example: Retainage has not been released for any lines, and you enter 50 as the percent to release. In this case, 50 percent of the retainage held per line is released.

  • Scenario B: Retainage already released for an invoice line: If you've already released retainage for an invoice line, the percent you enter is the percent you want to catch up to per line.

    Example: You've already released 50 percent of retainage for an invoice line, and you enter 75 as the percent to release. This indicates that you want a total of 75 percent of retainage released per line, not 75 percent of the remaining retainage balance.

    In this case, if the retainage held for an invoice line is 100.00, and you've already released 50.00, the retainage amount released is 25.00. The calculation is as follows: (.75 * 100) - 50 = 25

  • Scenario C: Release remaining retainage balance for all invoice lines: To release the remaining retainage balance across all lines, enter 100 as the percent to release.

    Example: You've already released 50 percent of retainage across all lines, and you enter 100 as the percent to release. In this case, all remaining retainage is released for all lines.

How retainage release batches are created

As long as at least one line falls within the specified retainage release percentage, Sage Intacct creates a retainage release batch and the associated vendor bills.

When lines are not processed

You'll receive an alert or error message in the following situations:

  • Invoice lines in a draft release batch: For invoice lines in a release batch with a draft status, you must either post those lines or remove them before releasing retainage from that invoice.

  • Invoice lines not processed: If you've already released retainage, it's possible for the percent you enter to result in a zero or negative retainage release amount for an invoice line. In this case, Sage Intacct does not release retainage for that line.

  • Batch not created: If you've already released retainage, and the percent you enter results in a zero or negative retainage release amount for all invoice lines, Sage Intacct does not create a retainage release batch.

Calculation examples

The following examples illustrate how Sage Intacct calculates flexible retainage release amounts.

You have a subcontract invoice with the following retainage amounts. You now want to release 50 percent of retainage across all invoice lines.

  • Total retainage held = 1030.00

  • Total retainage already released = 125.00

  • Percent of total retainage released = 12

  • Percent of total retainage remaining to release = 88

  • In the Minimum percent of retainage to release across all lines field, you enter 50.

The following table shows invoice line amounts before and after the retainage release is calculated. In this example, a retainage release batch is created. Retainage is released for all invoice lines because less than 50 percent of retainage was previously released for each line. Invoice lines with retainage already released are caught up to the specified 50 percent.

Flexible retainage calculation example 1
 

Starting retainage amounts

Retainage release calculation

Results

Invoice

Line

Retainage held

Previously released

Retainage remaining

Minimum percent to release

Calculation

Release amount (calculated)

Line processed?

Ending retainage balance

Invoice 1

1

130

0

130

50

(0.5 * 130) - 0

65

Yes

65

Invoice 1

2

700

100

600

50

(0.5 * 700) - 100

250

Yes

350

Invoice 2

1

200

25

175

50

(0.5 * 200) - 25

75

Yes

100

You have a subcontract invoice with the following retainage amounts. You now want to release 50 percent of retainage across all invoice lines.

  • Total retainage held = 1030.00

  • Total retainage already released = 505.00

  • Percent of total retainage released = 49

  • Percent of total retainage remaining to release = 51

  • In the Minimum percent of retainage to release across all lines field, you enter 50.

The following table shows invoice line amounts before and after the retainage release is calculated. In this example, a retainage release batch is created. Retainage is released only for the last line because less than 50 percent of retainage was previously released for that line.

Flexible retainage calculation example 2
 

Starting retainage amounts

Retainage release calculation

Results

Invoice

Line

Retainage held

Previously released

Retainage remaining

Minimum percent to release

Calculation

Release amount (calculated)

Line processed?

Ending retainage balance

Invoice 1

1

130

65

65

50

(0.5 * 130) - 65

0

No

65

Invoice 1

2

700

400

300

50

(0.5 * 700) - 400

-50

No

300

Invoice 2

1

200

40

160

50

(0.5 * 200) - 40

60

Yes

100

You have a subcontract invoice with the following retainage amounts. You now want to release 50 percent of retainage across all invoice lines.

  • Total retainage held = 1030.00

  • Total retainage already released = 725.00

  • Percent of total retainage released = 70

  • Percent of total retainage remaining to release = 30

  • In the Minimum percent of retainage to release across all lines field, you enter 50.

The following table shows invoice line amounts before and after the retainage release is calculated. In this example, a retainage release batch is not created because more than 50 percent of retainage was already released for all invoice lines.

Flexible retainage calculation example 3
 

Starting retainage amounts

Retainage release calculation

Results

Invoice

Line

Retainage held

Previously released

Retainage remaining

Minimum percent to release

Calculation

Release amount (calculated)

Line processed?

Ending retainage balance

Invoice 1

1

130

100

30

50

(0.5 * 130) - 100

-35

No

30

Invoice 1

2

700

500

200

50

(0.5 * 700) - 500

-150

No

200

Invoice 2

1

200

125

75

50

(0.5 * 200) - 125

-25

No

75

You have a subcontract invoice with the following retainage amounts. You now want to release all remaining retainage across all invoice lines.

  • Total retainage held = 1030.00

  • Total retainage already released = 415.00

  • Percent of total retainage released = 40

  • Percent of total retainage remaining to release = 60

  • In the Minimum percent of retainage to release across all lines field, you enter 100.

The following table shows invoice line amounts before and after the retainage release is calculated. In this example, a retainage release batch is created. All remaining retainage is released for all invoice lines because you specified to release 100 percent.

Flexible retainage calculation example 4
 

Starting retainage amounts

Retainage release calculation

Results

Invoice

Line

Retainage held

Previously released

Retainage remaining

Minimum percent to release

Calculation

Release amount (calculated)

Line processed?

Ending retainage balance

Invoice 1

1

130

65

65

100

(1.0 * 130) - 65

65

Yes

0

Invoice 1

2

700

200

500

100

(1.0 * 700) - 200

500

Yes

0

Invoice 2

1

200

150

50

100

(1.0 * 200) - 150

50

Yes

0