QuickBooks Tip – Handling Retainage

6 thoughts on “QuickBooks Tip – Handling Retainage

  • Sandra Stevenson

    I have an retainage interest payable on my books, which does not get paid out to customer. Do I take the interest back to my Interest Earned account?

  • No easy or straightforward way that I am aware of.

    You MIGHT be able to create a different item type for the GST (pointing it off the the proper account) and not use the “normal” GST item, then you could have your standard line items, the new GST item, then your 10% hold back on the total.

    Try that in a copy of the data file and see what happens with any GST reports that you can run.

  • I’m assuming that each invoice has an open or unpaid amount that is equal to the retainage owed showing in A/r – if that’s the case, you can use the method described in this post and edit each of the invoices and enter the Subtotal and Less Retainage lines. HOWEVER, if these amounts are from prior years and you tax preparere/accountant has already filed your tax returns, consult with him/her on the best way to handle this. DO NOT make changes that will affect a prior years tax return without talking to him/her first.

  • Georgene Shaver

    How to post this amount from past invoices? The money has not been collected from the customer but the invoices less that amount have been paid. We are just starting QuickBooks and setting up the accounts and balances. What is the offset account to Retainage Receivable. Do I enter each of the invoices with just that amount as owed?

  • Lynn

    Hi Nancy, my problem is our customer wants us to follow the GST memorandum 19.1 sect 81-84. Example #1 Contract Price $100,000. plus GST subtotal les 10% Holdback. QB want to put the holdback first then GST, is there a way to correct this for this customer?

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