Complete the steps below to clear the washing balances from the aging reports.

Verify both positive and negative retainage on the report

1. From the Accounts Receivable Reports menu, select Bill Retainage Preparation and then by Job.
2. Select the Include contract-based invoices and Include detail checkboxes.
3. Click Conditions, select Job NE "", click Delete, and then click OK.
   Note: Remove this condition to display any non-job-related transactions.
4. Print the report.
5. If the detail appears but the retainage held column totals zero, continue with the steps below.

Adjust the negative and positive retainage

Two options are available to accomplish this.

Adjust all invoices with retainage held balances (recommended)

Adjust all invoices with retainage held balances that net to zero using the same adjustment type for all adjustments.

If any of the washing invoices are Retainage Bills, use the Write Off adjustment type used for all adjustments. The AR Credit and Bad Debt adjustment types are available if none of the washing invoices are Retainage Bills. Use a Write Off adjustment if you don't know whether the amounts are on a retainage bill.

1. From the Tasks menu, select Adjust Receivables.
2. Select the Customer, and enter an Accounting Date.
3. From the View Dropdown list, select All Invoices.
4. Select the applicable invoice and click Adjust.
5. Select the Adjustment type of AR Credit, Bad Debt, Billed Credit or Write-off.
   
   NOTE:

   Only use a Billed Credit adjustment type when the amounts are for the same contract item. Otherwise, the contract will no longer appear 100% billed. The best adjustment type to use is an AR Credit, Bad Debt or Write Off.

6. Click Distributions and click Finish.

If you adjust a negative invoice, you’ll receive the message Distributions Out of Balance. Click Auto Balance.

Enter a 0.01 invoice and bill the retainage

1. From the Tasks menu, select Enter Invoices, Standard View.
2. Click List, select the customer, and then click OK.
3. Click List, select the contract, and then click OK.
4. Select a contract item. It doesn’t matter which item you select.
5. Enter the desired invoice date.
6. Enter 0.01 in the Amount column.
7. Enter 0.01 in the Retainage Held column.
8. Click Distributions.
9. In the Amount Type column, enter Total Billed and then press the TAB key.
10. Click List, select the contract item, and click OK.
11. Verify that the correct job is in the distribution grid.
12. Make note of the credit account that prefills.
13. Click Save Line and then click Finish.
14. Repeat steps 1-13 for each customer, job, and contract combination on the Bill Retainage Preparation Report by Job.
15. Click Finish and then click Yes to post the invoices.
16. Go to Tasks, Bill Retainage.
17. Enter the customer and click Select Invoices.
18. Select the washing invoices and the $0.01 invoice and click Bill.
    
    NOTE:

    Click Select All if all remaining invoices are part of this adjustment.

19. From the Tasks menu, select Post Entries, and then click Start to post the billed retainage.
20. Go to Tasks and Adjust Receivables.
21. Enter the customer and an accounting date to adjust the retainage invoice.
22. Select the $0.01 invoice and click Adjust.
23. The adjustment type will default to Write off.
24. Click Distributions.
25. In the distributions, verify the General Ledger Revenue account is the same account from the $0.01 invoice.
26. From the Tasks menu, select Post Entries, and then click Start to post the adjustments.
27. Print the Bill Retainage Preparation report using the steps above and aging reports.
28. Verify that no invoices with positive and negative retainage remain in the system.
    • The Retainage Held column doesn’t contain any values
    • Entries that were initially in the Retainage Held column now appear in the Retainage Billed column. This includes the $0.01 invoice
    • The Job no longer displays on the aging report if it's fully paid, adjusted, or both