Flexible retainage release calculation and error handling

Flexible retainage release allows you to release retainage across all invoice lines associated with a primary document (purchase order or subcontract).

This process applies a percentage that you enter to each invoice line in the batch. The amount that's released for a line is based on the total retainage withheld for that line, not the total retainage remaining on the invoice.

How the calculation works

Sage Intacct calculates the retainage release amount per line as follows:

How per line percentages work

The following scenarios illustrate how Sage Intacct handles the percent you enter for flexible retainage release.

• Scenario A: Retainage not yet released: If you have not yet released retainage for any invoice lines, the percent you enter is the percent of retainage released per line.

  Example: Retainage has not been released for any lines, and you enter 50 as the percent to release. In this case, 50 percent of the retainage held per line is released.

• Scenario B: Retainage already released for an invoice line: If you've already released retainage for an invoice line, the percent you enter is the percent you want to catch up to per line.

  Example: You've already released 50 percent of retainage for an invoice line, and you enter 75 as the percent to release. This indicates that you want a total of 75 percent of retainage released per line, not 75 percent of the remaining retainage balance.

  In this case, if the retainage held for an invoice line is 100.00, and you've already released 50.00, the retainage amount released is 25.00. The calculation is as follows: (.75 * 100) - 50 = 25

• Scenario C: Release remaining retainage balance for all invoice lines: To release the remaining retainage balance across all lines, enter 100 as the percent to release.

  Example: You've already released 50 percent of retainage across all lines, and you enter 100 as the percent to release. In this case, all remaining retainage is released for all lines.

How retainage release batches are created

As long as at least one line falls within the specified retainage release percentage, Sage Intacct creates a retainage release batch and the associated vendor bills.

When lines are not processed

You'll receive an alert or error message in the following situations:

• Invoice lines in a draft release batch: For invoice lines in a release batch with a draft status, you must either post those lines or remove them before releasing retainage from that invoice.

• Invoice lines not processed: If you've already released retainage, it's possible for the percent you enter to result in a zero or negative retainage release amount for an invoice line. In this case, Sage Intacct does not release retainage for that line.

• Batch not created: If you've already released retainage, and the percent you enter results in a zero or negative retainage release amount for all invoice lines, Sage Intacct does not create a retainage release batch.

Calculation examples

The following examples illustrate how Sage Intacct calculates flexible retainage release amounts.

Example 1: All invoice lines processed

You have a subcontract invoice with the following retainage amounts. You now want to release 50 percent of retainage across all invoice lines.

• Total retainage held = 1030.00

• Total retainage already released = 125.00

• Percent of total retainage released = 12

• Percent of total retainage remaining to release = 88

• In the Minimum percent of retainage to release across all lines field, you enter 50.

The following table shows invoice line amounts before and after retainage is calculated. In this example, retainage is released for all invoice lines because each line has less than 50 percent of retainage already released. Invoice lines with retainage already released are caught up to the 50 percent you specified.

Flexible retainage calculation example 1

		Before			Calculation		Result: Batch created (all lines processed)
Invoice no.	Line no.	Retainage held	Retainage already released	Balance	Percent to release	Calculation	Amount released	Line processed	Balance
Invoice 1	1	130	0	130	50	(0.5 * 130) - 0	65	Yes	65
Invoice 1	2	700	100	600	50	(0.5 * 700) - 100	250	Yes	350
Invoice 2	1	200	25	175	50	(0.5 * 200) - 25	75	Yes	100

Example 2: Some invoice lines meet or exceed specified retainage release percent

You have a subcontract invoice with the following retainage amounts. You now want to release 50 percent of retainage across all invoice lines.

• Total retainage held = 1030.00

• Total retainage already released = 505.00

• Percent of total retainage released = 49

• Percent of total retainage remaining to release = 51

• In the Minimum percent of retainage to release across all lines field, you enter 50.

The following table shows invoice line amounts before and after retainage is calculated. In this example, retainage is released only for the line with less than 50 percent of retainage already released.

Flexible retainage calculation example 2

		Before			Calculation		Result: Batch created (only last line processed)
Invoice no.	Line no.	Retainage held	Retainage already released	Balance	Percent to release	Calculation	Amount released	Line processed	Balance
Invoice 1	1	130	65	65	50	(0.5 * 130) - 65	0	No	65
Invoice 1	2	700	400	300	50	(0.5 * 700) - 400	-50	No	300
Invoice 2	1	200	40	160	50	(0.5 * 200) - 40	60	Yes	100

Example 3: All invoice lines meet or exceed specified retainage release percent

You have a subcontract invoice with the following retainage amounts. You now want to release 50 percent of retainage across all invoice lines.

• Total retainage held = 1030.00

• Total retainage already released = 725.00

• Percent of total retainage released = 70

• Percent of total retainage remaining to release = 30

• In the Minimum percent of retainage to release across all lines field, you enter 50.

The following table shows invoice line amounts before and after retainage is calculated. In this example, a batch is not created because more than 50 percent of retainage has already been released for all invoice lines.

Flexible retainage calculation example 3

		Before			Calculation		Result: Batch not created (no lines processed)
Invoice no.	Line no.	Retainage held	Retainage already released	Balance	Percent to release	Calculation	Amount released	Line processed	Balance
Invoice 1	1	130	100	30	50	(0.5 * 130) - 100	-35	No	30
Invoice 1	2	700	500	200	50	(0.5 * 700) - 500	-150	No	200
Invoice 2	1	200	125	75	50	(0.5 * 200) - 125	-25	No	75

Example 4: Release all remaining retainage for all invoice lines

You have a subcontract invoice with the following retainage amounts. You now want to release all remaining retainage across all lines.

• Total retainage held = 1030.00

• Total retainage already released = 415.00

• Percent of total retainage released = 40

• Percent of total retainage remaining to release = 60

• In the Minimum percent of retainage to release across all lines field, you enter 100.

The following table shows invoice line amounts before and after retainage is calculated. In this example, all remaining retainage is released for all invoice lines because you specified to release 100 percent.

Flexible retainage calculation example 4

		Before			Calculation		Result: Batch created (all remaining retainage released across all lines)
Invoice no.	Line no.	Retainage held	Retainage already released	Balance	Percent to release	Calculation	Amount released	Line processed	Balance
Invoice 1	1	130	65	65	100	(1.0 * 130) - 65	65	Yes	0
Invoice 1	2	700	200	500	100	(1.0 * 700) - 200	500	Yes	0
Invoice 2	1	200	150	50	100	(1.0 * 200) - 150	50	Yes	0