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 configured for vendors (Construction subscription adds bulk release)
The Sage Intacct way
Where to find it: Accounts Payable vendor retainage settings; Purchasing transaction definitions
- Enable retainage for the vendor.
- Add a GL account for retainage payable entries and a retainage tracking account.
- Turn on retainage on the Purchasing transaction definitions for vendors. Optionally set a default retainage percentage for the vendor.
- Withhold retainage on the bill, then release it later with a retainage release bill.
Limits in Sage Intacct
- Since 2024 R4 retainage in AP works without a Construction subscription. Bulk release needs Construction.
- Subcontractor payment applications are an early adopter feature.
Good to know in Sage Intacct
- Joint check payments for construction are available in Australia.
What to watch in Sage Intacct
- Enable retainage for the vendor. Add a GL account for retainage payable entries and a retainage tracking account.
- Turn retainage on in the Purchasing transaction definitions for vendors. A default retainage percentage can be set on the vendor.
- Since 2024 R4 retainage in AP works without a Construction subscription. Bulk release needs Construction.
- Subcontractor payment applications are an early adopter feature.
- Check the release screen steps with your Intacct partner before the first release.
Example in Sage Intacct
Example Excavations Pty Ltd claims $22,000 ex GST on claim 2. The contract holds 5% retention. Retainage is set up for the vendor, the account is in place and the transaction definition has retainage on.
| Line | Amount | Tagged to |
|---|---|---|
| Claim 2 ex GST | $22,000.00 | Bill |
| Retainage withheld at 5% | -$1,100.00 | Posts to the retainage payable account |
| Payable now | $20,900.00 | Paid in pay bills |
The bill withholds $1,100. Later a retainage release bill pays it. Bulk release needs the Construction subscription.
Common mistakes
- Enabling retainage on the vendor but not on the transaction definition.
- Having no retainage payable account, so withheld amounts have nowhere to post.
More help
- How to record retention on a subcontractor bill in MYOB Acumatica
- How to record retention on a subcontractor vendor invoice in Sage 300
- How to match a bill to a purchase order in Sage Intacct
- How to job cost bill records in Sage Intacct
- How to report contractor payments for TPAR from Sage Intacct
- How to record retention on a subcontractor bill (any system)
- All Sage Intacct how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: partial.
Common questions
Do I need the Construction subscription for retainage?
Since 2024 R4 retainage in AP works without it. Bulk release needs Construction. The vendor release notes describe this, so confirm it for your subscription.
What do I set up for retainage?
Enable retainage for the vendor and add a GL account for retainage payable entries and a retainage tracking account. Then turn on retainage on the Purchasing transaction definitions.
How do I release it?
Withhold retainage on the bill and release it later with a retainage release bill.
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 Intacct.