More retainage was billed to the customer than was held on previously posted invoices.

A frequent cause of this is when the customer on a contract in Contracts has been changed after billings with retainage held have been issued. When retainage is billed for a contract, Billing is validating the total retainage held for the contract not the customer. When the retainage invoice then posts to Accounts Receivable, AR recognizes that the customer billed is not responsible for the full amount of the retainage on the invoice and puts in as Overbilled Retainage to the General Ledger account defined in AR Settings for Overbilled Retainage.

If the new customer is responsible for all retainage held on the contract:

1. Void the invoice with the overbilled retainage billed. (Note: Any cash receipts will need to be unapplied first, any adjustments will need to be voided before the invoice with overbilled retaiange can be voided)
2. From the Accounts Receivable Reports menu, select Bill Retainage Preparation, by Job or by Contract, and verify the amount of retainage available to bill for each customer.
3. From the Accounts Receivable Tasks menu, select Adjust Receivables.
4. Select the original customer for this contract.
5. Adjust each of the invoices printed on the Bill Retainage Preparation report from step 2 above using a Billed Credit adjustment. Enter the same amount in both the Amount and Retainage Held fields.
   Note: This will make the amount of the retainage held on the invoices available to bill as work billed on the contract.
6. Bill all of the remaining work billed and retainage held on the contract.
7. Rebill retainage as needed.

If the original customer is responsible for paying their portion of retainage:

1. Void the invoice with the overbilled retainage billed.
2. Select the Reinstate invoice in Billing check box to have the ability to edit the invoice in Billing.
3. From the Accounts Receivable Reports menu, select Bill Retainage Preparation, by Job or by Contract, and verify the amount of retainage available to bill.
4. Bill the retainage again for the amount the report indicates for the customer currently on the Contract.
5. Change the Customer on the Contract back to the original customer.
6. Bill that customer for the balance of the retainage.
7. Change the Customer on the Contract back to the NEW customer.

Note: Use the bill retainage task in AR to bill out the retainage. Do not bill out the retainage in the billing module as it can send over more overbilled retainage items.

For more information, see the links below.