# How to record retention on a subcontractor invoice in Sage 300 CRE

Work out the retention under the contract, record the invoice 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.

## The Sage 300 CRE way

Where to find it: Subcontract commitments and AP invoice distribution

1. Set the retainage percent on the subcontract.
2. Enter the gross invoice. The retainage box on the distribution holds back the retained part.
3. Retainage goes to the Retainage Payable account.
4. Release later with AP Retainage Release or pick the retainage in Select Invoices to Pay.

## Limits in Sage 300 CRE

- Users warn against entering a separate retainage invoice because it can double the amount.
- Retainage Release may be hidden by security settings.
- Australian security of payment rules were not checked.

## Good to know in Sage 300 CRE

- Release by cost code is possible by filtering in Select Invoices to Pay.

## Example in Sage 300 CRE

Example Concrete Subcontractors sends a progress claim for $20,000 gross on a subcontract with 10% retainage set.

- Payable now: $18,000.00 (Job: Example Job 101)
- Retainage held: $2,000.00 (Retainage Payable account)

Gross $20,000.00 is $18,000.00 payable now plus $2,000.00 held as retainage until you release it.

## Common mistakes

- Entering a separate retainage invoice, which can double the amount.
- Looking for Retainage Release when security settings have hidden it.

## Common questions

### Where do I set the retainage rate?

On the subcontract. Enter the gross invoice, and the retainage box on the distribution holds back the retained part in the Retainage Payable account.

### Should I enter a separate retainage invoice?

No. Users warn against it because it can double the amount. Enter the gross invoice and let the retainage box do the holding back.

### How do I release retainage later?

Use AP Retainage Release or pick the retainage in Select Invoices to Pay. Filtering there lets you release by cost code. Security settings can hide Retainage Release.

### Does Pulsify track retention?

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

## Sources

- https://us-kb.sage.com/portal/app/portlets/results/viewsolution.jsp?solutionid=223924850045770&hypermediatext=null
- https://communityhub.sage.com/us/sage_construction_and_real_estate/f/sage-300-construction-and-real-estate/175323/releasing-subcontractor-retainage
- https://communityhub.sage.com/us/sage_construction_and_real_estate/f/sage-300-construction-and-real-estate/167633/subcontractor-retainage
- https://communityhub.sage.com/us/sage_construction_and_real_estate/f/sage-300-construction-and-real-estate/220413/ap-retainage-invoices
- https://communityhub.sage.com/us/sage_construction_and_real_estate/f/sage-300-construction-and-real-estate/272670/clearing-retainage-in-ap/655417
- https://communityhub.sage.com/us/sage_construction_and_real_estate/f/sage-300-construction-and-real-estate/253613/moving-accounts-payable-retention-to-accounts-payable

Source: https://www.pulsify.tech/how-to/record-retention-on-a-subcontractor-bill-in-sage-300-cre/ (last checked 2026-10-19)