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
- Set the retainage percent on the subcontract.
- Enter the gross invoice. The retainage box on the distribution holds back the retained part.
- Retainage goes to the Retainage Payable account.
- 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.
Words Sage 300 CRE uses
- Retainage. The word for retention in the US edition. Money held back from a subcontract invoice.
- Retainage Payable account. The ledger account that takes the retained part of an invoice instead of the AP account.
Example in Sage 300 CRE
Example Concrete Subcontractors sends a progress claim for $20,000 gross on a subcontract with 10% retainage set.
| Line | Amount | Tagged to |
|---|---|---|
| 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.
More help
- How to record retention on a subcontractor payable invoice in Sage 100 Contractor
- How to match a vendor invoice to a purchase order in Sage 300 CRE
- How to job cost invoice records in Sage 300 CRE
- How to report contractor payments for TPAR from Sage 300 CRE
- How to record retention on a subcontractor bill (any system)
- All Sage 300 CRE how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: partial.
- us-kb.sage.com/portal/app/portlets/results/viewsolution.jsp?solutionid=223924850045770&hypermediatext=null
- communityhub.sage.com/us/sage_construction_and_real_estate/f/sage-300-construction-and-real-estate/175323/releasing-subcontractor-retainage
- communityhub.sage.com/us/sage_construction_and_real_estate/f/sage-300-construction-and-real-estate/167633/subcontractor-retainage
- communityhub.sage.com/us/sage_construction_and_real_estate/f/sage-300-construction-and-real-estate/220413/ap-retainage-invoices
- communityhub.sage.com/us/sage_construction_and_real_estate/f/sage-300-construction-and-real-estate/272670/clearing-retainage-in-ap/655417
- communityhub.sage.com/us/sage_construction_and_real_estate/f/sage-300-construction-and-real-estate/253613/moving-accounts-payable-retention-to-accounts-payable
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.
Want this done for you?
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