Overview
Simplify retention management and enhance cash flow control with INGENIOUS.BUILD's retention features on contracts. This solution allows you to automatically track and adjust retention percentages for each contract and its associated line items, making the invoicing process more streamlined and transparent.
Prerequisites
A retention percentage rule is included on the contract.
Process
Creating an Invoice
Navigate to the Invoicing & Pay Applications module from the project navigation menu.
Click + Create and proceed through the typical invoice creation process. Choose Contracted Invoice, select the contract, and click Next Step.
This first step presents Contracted Invoice as one of the invoice type options, followed by a dropdown to select the specific contract, and a Next Step button to continue.
3. Enter the invoice details and proceed to the Next Step. Note that you can modify and release retention within a regular contracted invoice.
4. On the SoV/WBS tab, click Modify / Release Retention.
5. Clicking this button will jump the screen to the Current Retention Amount ($) and Current Retention Percent (%) columns of the invoice.
These two columns sit within the SoV/WBS line-item table, showing each line item's current retention amount and percentage side by side.
Releasing Retention
Releasing retention means you are paying retention that you have held on previous invoices.
For example, you have a General Contractor that has previously billed $50,000 for their Demolition scope of work with a retention rule of 10%. $5,000 in retention has been held. You now want to release this $5,000 to the GC.
Find the Total Retention Amount ($) column. In this column, we can see that $5,000 was previously held on the Demolition SoV/WBS line item.
The Total Retention Amount ($) column shows this held amount ($5,000) directly on the Demolition line item within the SoV/WBS table.
4. To release this, update the $5,000 amount to $0. Note that by doing this, the Retention Released this Period ($) column is updated to $5,000.
After editing the field down to $0, the adjacent Retention Released this Period ($) column automatically updates to reflect the $5,000 now being released.
5. This $5,000 in released retention will be included in the invoice value for this invoice.
Modifying Retention
Modify retention when you want to change the amount of retention held on an invoice. Modifying retention will also update the retention percentage for future invoices.
For example, on this same invoice, your General Contractor is billing for $10,000 against the Overhead & Profit line item. This line item includes 10% retention, but you have agreed to reduce the retention held on this line item from 10% to 5%.
Click Modify / Release Retention and find the Current Retention Percent (%) column. Currently, this invoice includes 10% retention.
The Current Retention Percent (%) column shows this 10% figure directly on the Overhead & Profit line item, as an editable field.
3. Change the 10% to 5%.
a. Note that by doing this, the Current Retention Amount on this line item changed from $1,000 to $500.
Editing the percentage field to 5% automatically recalculates the adjacent Current Retention Amount ($) column from $1,000 down to $500.
You are now holding 5% instead of 10% on this line item. In future invoices, 5% will continue to be held until you update the retention percentage again.
Approving the Invoice
You can now complete the invoice details as you would for any contracted invoice. Upload Supporting Documents if applicable, Apply Funding, and Approve the invoice.
By using this feature, you maintain control over retention funds while offering your partners clarity on their payments, all within a simple, automated process that integrates seamlessly with your existing invoicing workflow.