Merged Suggestions
This idea has been merged into another idea. To comment or vote on this idea, please visit VSTA-I-1635 Make the new retainage release process optional..
Retainage Release process - assumption is that it will be billed for separately- AP hold and release, release retainage and it gets paid out - doesn't move from GL, retainage payable to accounts payable, retainage doesn't age, no invoice needed
Merged
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Andrew Karr
- Nov 8 2016
- Will not implement
| Company | Messer Construction |
| Job Title / Role | AP Mgr |
| I need it... | Yesterday...Come on already |
Related Suggestion
I assume you are describing your desired retainage workflow. This is essentially the process prior to 6.19 (no GL update or aging on released retainage) and worked well for many contractors, but assumes your practice is to pay out any/all released retainage immediately.
Over the last few years we heard from a substantial number of large GCs who release retainage, but not always able or willing to pay out the full amount before month end. Without a GL update from R/P to A/P and reclassification on Aging reports, they could not easily perform a AP/GL reconciliation and aging reports were not accurate.
I recognize that the new release retainage process adds a step or two in your AP workflow, but it does accurately reflect accounting best practice along with a record of who released retainage and when (not previously tracked). Should you ever overlook or choose not to immediately issue payment of released retainage, Aging reports and GL will now accurately reflect the situation.