# How to record retention on a subcontractor bill in MYOB Acumatica

Work out the retention under the contract, record the bill for the full claim and the amount held back and track the retention balance for the vendor until you release it.

Retention is an amount held back from a subcontractor's progress claim until the work is finished or defects are fixed.

## Before you start

- Retainage Support feature

## The MYOB Acumatica way

Where to find it: Bills and Adjustments (AP301000) with retainage; Release AP Retainage (AP510000)

1. Turn on the Retainage Support feature (Enable/Disable Features, CS100000).
2. Set the default retainage settings in Accounts Payable. On the bill, apply retainage so part of each line is held.
3. To pay the held amount later, open the bill on Bills and Adjustments, click Release Retainage on the More menu (under Processing), check Retainage to Release and save. The system creates a retainage bill.
4. A negative Retainage to Release creates a retainage debit adjustment.

## Limits in MYOB Acumatica

- The Retainage Support feature must be on.
- Retainage can be tracked by document line.

## Example in MYOB Acumatica

Example Formwork Pty Ltd sends a progress claim of $20,000 before GST. The default retainage is 10%.

- Progress claim paid now: $18,000.00 (Paid with the bill)
- Retainage held at 10%: $2,000.00 (Held until Release Retainage)

Pay $18,000 now. When the contract allows, run Release Retainage for the $2,000 and the system creates a retainage bill.

## Common mistakes

- Looking for retainage settings when the Retainage Support feature is not on.
- Paying the bill and forgetting the held amount, which waits until Release Retainage is run.

## Common questions

### How do I turn on retainage?

Turn on the Retainage Support feature in Enable/Disable Features (CS100000), then set the default retainage settings in Accounts Payable.

### How do I pay the held amount later?

Open the bill on Bills and Adjustments, click Release Retainage on the More menu (under Processing), check Retainage to Release and save. The system creates a retainage bill.

### What if Retainage to Release is negative?

A negative amount creates a retainage debit adjustment.

### Does Pulsify track retention?

No. Track retention in your accounting system or a schedule.

## Sources

- https://help.myob.com.au/advanced/Docs/Published/UserGuide/AP__MNG_Managing_Bills_with_Retainage.html
- https://help.myob.com.au/advanced/Docs/Published/UserGuide/AP__HOW_To_Release_Retainage.html
- https://help.myob.com.au/advanced/Docs/Published/UserGuide/AP_30_10_00.html

Source: https://www.pulsify.tech/how-to/record-retention-on-a-subcontractor-bill-in-myob-advanced/ (last checked 2026-10-19)