Write off retainage billed amounts in Enter Cash Receipts or in Adjust Receivables

You can write off retainage billed invoices through Enter Cash Receipts or in Adjust Receivables. Use Option 1 to write off billed retainage in Enter Cash Receipts. Use Option 2 to write off billed retainage in Adjust Receivables.

Notes:

• While entering cash receipts, you can write off billed retainage, but not retainage held.
• Adjusting during enter cash receipt entry will not allow the debit account to change. It will use the write off account from AR settings. If you want to change the write off debit account, use the steps for an adjustment instead.
• You can write off invoices that contain retainage overbilled transactions when adjusting receivables, but not while entering cash receipts.
• A write off will not reduce work billed on the contract or job.
• If you need the work billed amounts reduced, you must void the retainage invoice and the adjust the retainage held with a billed credit. To meet the amount of the adjustment desired, you may need to adjust retainage held on multiple invoices.

Option 1: Write off billed retainage in Enter Cash Receipts

1. From Tasks, select Enter Cash Receipts, and select entry view to use.
2. In the Deposit Information window, enter the deposit information and click OK.
   Note: Enter the amount of the actual deposit you are making. You don’t need to adjust the deposit amount for the write-off amount.
3. In the Deposit Items window, select the deposit item type and enter the customer, amount, and other deposit item information. Press ENTER at the end of the line to open the Cash Receipts Selection window.
4. In the Cash Receipts Selection window, locate the invoice where you want to write off billed retainage and click until Write off becomes available.
5. Click Write Off to open the Write-off Amount window.
6. Enter the amount to write off in the Invoice Amount Write-off box.
7. Click OK. When the message box appears, click Yes to create the adjustment.
8. Click OK in the Cash Receipt Selection window.
9. Click Finish to finish your cash receipt entries.
10. Click Yes to post the entries.

Option 2: Write off billed retainage in Adjust Receivables

1. From Tasks, select Adjust Receivables.
2. In the Adjust Receivables window, enter the customer ID and accounting date.
3. Select the retainage billed invoice and click Adjust.
4. In the Adjustment type list, select Write-off.
5. Enter the applicable Adjustment date.
   Note: The Adjustment date is used for aging purposes when your aging basis is Invoice date.
6. The Retainage Billed Adjustment field prefills with the outstanding retainage billed balance. Change the prefilled amount to write off just part of the amount.
7. Click Distributions.
8. You can change which item the retainage amount is adjusting on and the debit account, if needed. The debit account will prefill from the Write off Account in AR settings.
9. Click Finish twice.
10. Click Yes to post the entries.