Retention is an amount held back from a subcontractor's progress claim until the work is finished or defects are fixed.
Before you start
- Contract Management
The IFS Cloud way
Where to find it: Match Supplier Invoice with Sub Contract Payment Certificate
- Enter the Sub Contract Ref on the invoice in Manual Supplier Invoice
- Select the invoice line and use Match Certificates per Line
- Match the certified payment certificate lines until Remaining is zero
- Before the invoice arrives, enter the sub contractor's application for payment on a valuation of the sub contract. Compare it with the valuation and enter the certified amounts.
- Certify the valuation. IFS then creates certified postings for the net amount, retention, deduction and discount and reverses the application amounts.
- In the Post from Sub Contract dialog you can change Matching Amount and Additional Cost per line. Tick Matched on single lines or use Match All.
Limits in IFS Cloud
- Retention is not matched on the invoice. It is defined on the sub contract and handled through sub contract valuation, which creates certified postings for retention, deduction and discount
- The certificate must be certified before it can be matched
- A valuation can only be certified after the certification steps are finished, and only certified valuations can be matched.
- Matching a supplier invoice to subcontract certificates is manual. Automatic authorization is not built for subcontract matching
Good to know in IFS Cloud
- A valuation moves through Planned, Valuation Completed, Application Received, Certification In Progress and Certified. Matching invoices sets it to Partially Invoiced and then Fully Invoiced.
- Payment status runs separately from valuation status: Partially Paid and then Fully Paid.
- Valuation is cumulative. A new valuation copies the values of the previous one.
- When you save the invoice a voucher is created with the final cost postings taken from each certificate line.
Words IFS Cloud uses
- Manual Supplier Invoice. The page used to key a supplier invoice with cost postings.
Common mistakes
- Looking for a retention field on the invoice.
- Trying to match a payment certificate that is not certified yet.
More help
- How to record retention on a subcontractor purchase invoice in Sage X3
- How to record retention on a subcontractor supplier invoice in S/4HANA
- How to match a supplier invoice to a purchase order in IFS Cloud
- How to job cost supplier invoice records in IFS Cloud
- How to report contractor payments for TPAR from IFS Cloud
- How to record retention on a subcontractor bill (any system)
- All IFS Cloud how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: confirmed.
- docs.ifs.com/ifsclouddocs/26r1/lang/en/SupplierInvoicing/ActivityMatchSubContractperLine.htm
- docs.ifs.com/ifsclouddocs/25r2/SubConValuation/AboutSubContractValuation.htm
Also confirmed by
Common questions
Where is retention handled?
Not on the invoice. Retention is defined on the sub contract and handled through sub contract valuation, which creates certified postings for retention, deduction and discount.
What do I enter on the invoice?
The Sub Contract Ref in Manual Supplier Invoice. Then select the invoice line and use Match Certificates per Line.
When can I match a certificate?
Only once it is certified. Match certified lines until Remaining is zero.
Does Pulsify track retention?
No. Track retention in your accounting system or a schedule.
Want this done for you?
Book a call to see how Pulsify handles supplier bills in IFS Cloud.