How do I adjust or reduce retainage held on an Accounts Receivable or Billing invoice?

Important: Do not use this process to adjust a Retainage Billed invoice. Instead follow these steps to adjust a retainage billing.

These steps are not for when a client overpays. When a client overpays, you can:

• Bill retainage and apply the overpayment
• Void the invoice, rebill for the correct amount and apply the overpayment
• Retain the overpayment as a customer cash receipt for a future invoice 

In order to remove all or a portion of a retainage held balance, the following options are available. These options will not increase the amount due on the invoice but will reduce the retainage held balance.

Adjust retainage and Total Billed

1. Go to Accounts Receivable, Tasks, Adjust Receivables.
2. Enter the Customer and Accounting date.
3. For the View, select All invoices.
4. Select the invoice and click Adjust.
5. Select the adjustment type you wish to use (Billed Credit, AR Credit, Bad Debt)
   Note: For more information about the adjustment types, right-click in the Adjustment type box and select What's This?.
6. Enter the amount of the adjustment in the Amount and Retainage held boxes under Adjustment.
   Note: If you are only adjusting retainage held, then both amounts should be the same.
7. Click Distributions to distribute the amount.
8. Click Finish twice.

Retainage was held in error

Void the invoice and re-enter without retainage held. See more information about voiding an AR invoice.

Accounts Receivable adjustment types, their uses, and their account retrieval
How do I adjust or write off an invoice in Accounts Receivable?
How do I bill retainage on a contract-based invoice in Billing?
How do I bill retainage on a cost-based invoice in Billing?
How do I bill retainage in Accounts Receivable?
How do I bill retainage using Enter Quick Bill?