QuickBooks Online: RETAINAGE (aka. Withheld Funds)

[@cmariebsa]

Hector, I want to thank you. I went through the QBO training but I really think I passed my QBO ProAdvisor Exam thanks to KZbin content from your channel. Thank you so much.

[@HectorGarciaCPA]

Great!

[@AceCPAsBookkeeping]

TLDR: Retainage in QuickBooks Online is a withheld portion of a contract to ensure completion, and it can be tracked and managed using specific accounts and processes within the software. 00:00 📝 Retainage in QuickBooks Online is a withheld portion of a contract to ensure completion, with two types for suppliers and customers. 02:33 📝 Set up retainage receivable and retainage payable accounts in QuickBooks Online to track withheld funds from customers and liabilities, using "other current liability" as the detail type for retainage payable. 05:00 📝 Set up explicit retainage account names, create service item for retainage, and set up accounts for customer withholdings and supplier retainage payable in QuickBooks Online. 08:04 📝 Input retainage in QuickBooks Online by using a negative amount or typing "retainage" followed by the total amount multiplied by the percentage. 11:24 📊 Add retainage to invoice, include line description, receive full payment, view retainage receivable on balance sheet, group transactions for clear understanding. 14:38 📝 Invoice the customer for retainage, then invoice the retainage amount later, and when paid back, the total amount of retainage for that customer is zero, and collapse and reorder columns to easily see retainage per customer. 17:12 📝 Retainage is withheld by customers and vendors, shown as an asset on the balance sheet, and can be allocated using category details when creating bills in QuickBooks Online. 21:15 📊 Filter and customize retainage transactions in QuickBooks Online to differentiate between paid and unpaid, and use accrual filtering for bills.

[@HectorGarciaCPA]

Thanks

[@NatalieHudson-c7l]

Very informative Hector - thank you! Question... I'm cash basis. When I add a negative retainage amt to an invoice, it correctly shows on my balance sheet, however my P&L reflects the full amount of the invoice, even though the retainage amt has not yet been collected. What am I missing? Example: I invoice for a Contractor Fee (Income Acct) of 10%= $1000 with a second line item of Retainage Receivables (Other Current Asset Acct) of -$100, so total invoice is for $900. Customer pays total invoice of $900. My Balance Sheet shows Retainage Receivables of $100 owed to me. My P&L shows $1000 of income, not $900. My preferences are set to Cash basis and the P&L report is also set to cash basis...??? Thanks so very much - your videos are great and I truly appreciate your help!!

[@yasirmehmood1927]

Hi Hector ! I have 1 question when we register retainage withheld from vender how it will be calculated in project cost it will show only in account payable against the vendor and in retainage payable in our liabilities but not calculated in our project cost

[@JoshuaDunn-lu5rj]

Hey Hector! I love your videos and they are very helpful. Could you do a video on how to manage change orders?

[@HectorGarciaCPA]

No Change Order feature in QBO, so not going to make a video

[@JoshuaDunn-lu5rj]

@@HectorGarciaCPA Ah ok! That stinks. Thank you anyway, Hector!! Hmm...do you have any creative ideas on how you would manage it?

[@elezardador3441]

@@JoshuaDunn-lu5rj For change orders, I think you just have to edit and revise your original estimates by adding the change orders.

[@xiaohuawang9982]

Hi Hector, Thanks for all the great videos! Could you do a video about the Accounts Payable cycle(Purchase Order, Receive bill, and pay bill)? Thank you in advance!

[@HectorGarciaCPA]

Its there

[@theresasutter2715]

Watched the Video, Question: Why on the bill side (2nd half of your lesson) you did not tag the customer/project on the retainage line? Wouldn't that help with additional reporting options?

[@HectorGarciaCPA]

Yeah.. it could help, but is not required

[@lf6150]

Thank you so much for your video. I’m new to Quick Books and your video was extremely informative and helpful for this subject. You gained a new follower.

[@HectorGarciaCPA]

Glad it was helpful!

[@dawnp1402]

I receive quarterly payments on an annual grant, how can I set up retainage in quarterly amounts? I also pay annual contractor invoices in quarterly payments, what’s the best way to see receivables and payables for each quarter using this method?

[@HectorGarciaCPA]

Grant accounting is more complicated, i am afraid i cant answer this quickly

[@dawnp1402]

@@HectorGarciaCPA would you be willing to do a video on grant accounting?

[@tatianar6045]

Where we are moving the retainage at the end of the year if the customer comes under insolvency, is the retainage moved to the PL by journal: Debit Bad Debt and Credit Retainage?

[@HectorGarciaCPA]

Yeap.

[@tatianar6045]

@@HectorGarciaCPA thanks... helpful video 📹...

[@OTPROAirConditioning]

Thank you for teaching us!

[@HectorGarciaCPA]

:)

[@aloeorganizedllc4121]

Beautiful ❤

[@HectorGarciaCPA]

:)