Retention is an amount held back from a subcontractor's progress claim until the work is finished or defects are fixed.
Before you start
- Sage 300 Accounts Payable
- Security authorisation for the screen
The Sage 300 way
Where to find it: A/P Setup > Options; A/P Invoice Entry > Retainage tab; A/P Periodic Processing > Create Retainage Batch
- Set default retainage percentage, retention period and retainage terms on A/P Options and the vendor Invoicing tab.
- On the invoice enter retainage percentage or amount, retention period and due date for each detail, and set terms on the Retainage tab.
- The retained part posts to Retainage Control as a separate retainage document.
- Later run A/P Periodic Processing > Create Retainage Batch to invoice outstanding retainage.
- Run the Aged Retainage report to track it.
Limits in Sage 300
- Retainage invoices and credit notes can also be entered manually.
- Australian security of payment rules are not part of the Sage guide.
Words Sage 300 uses
- Batch. A group of invoices entered together and then posted together.
Example in Sage 300
Example Concrete Pours sends a progress claim for $10,000 before tax. The detail carries a 5% retainage percentage and a retention period.
| Line | Amount | Tagged to |
|---|---|---|
| Slab progress claim, payable now | $9,500.00 | Normal payable |
| Retainage held at 5% | $500.00 | Retainage Control, separate retainage document |
The $500.00 stays in Retainage Control until A/P Periodic Processing > Create Retainage Batch invoices it. The Aged Retainage report shows it while it is held.
Common mistakes
- Entering retainage on the invoice without setting terms on the Retainage tab.
- Forgetting to run Create Retainage Batch, so retained amounts are never invoiced.
More help
- How to record retention on a subcontractor bill in MYOB Acumatica
- How to record retention on a subcontractor bill in Sage Intacct
- How to match a vendor invoice to a purchase order in Sage 300
- How to job cost A/P invoice records in Sage 300
- How to report contractor payments for TPAR from Sage 300
- How to record retention on a subcontractor bill (any system)
- All Sage 300 how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: confirmed.
Common questions
How do I set default retainage in Sage 300?
Set the default retainage percentage, retention period and retainage terms on A/P Options and on the vendor Invoicing tab.
What happens to the retained amount?
It posts to Retainage Control as a separate retainage document. Later, run A/P Periodic Processing > Create Retainage Batch to invoice the outstanding retainage.
How do I track what is still held?
Run the Aged Retainage report. It is separate from the Aged Payables report.
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 Sage 300.