Retainage Payable and Receivable – What’s the Difference?

Retainage Payable and Receivable – What’s the Difference?

Customers & Accounts Receivable, QuickBooks Setup & Cleanup, Vendors & Accounts Payable
Retainage or retention, in the construction industry, is an agreed upon portion of the contract price that is deliberately withheld until the work is substantially complete to assure that the contractor or subcontractor will satisfy its obligations and complete a construction project.  Retainage is often confusing all by itself, and then there is also a lot of very confusing terminology as well.  But there is a difference between Retainage Receivable and Retainage Payable. To put it as simply as possible: Retainage Receivable is money that is owed to you, while Retainage Payable is money that you owe to someone else Usually, if you are a General Contractor you will need to track both Retainage Receivable (for money due to your company) and Retainage Payable (money you owe to your Subcontractors).…
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