# How to record retention on a subcontractor purchase invoice in Sage X3

Sage X3 has a withholding at source feature that can hold back a rate on an invoice or on payment.

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 X3 Financials and Purchasing
- Function and site rights for the screen

## The Sage X3 way

Where to find it: Financials > Invoices > Purchase invoices

1. Create a retention code in Common data > Common tables > Retention management. Choose retention on invoice or on payment, a calculation base, a rate and a cash account.
2. Add the code to the supplier on the Financial tab (Withholding code, field RITCOD).
3. On a supplier BP invoice the retention line posts to the cash account. For retention on payment the retained amount shows on the payment entry.

## Limits in Sage X3

- This is a withholding at source feature, not a contract retention schedule.
- The payment screen help ties the Withholdings column to the Italian legislation (KIT activity code). Ask your partner whether it applies to you before relying on it.

## Common mistakes

- Using withholding at source as a contract retention release schedule.

## Common questions

### Does X3 have a retention feature for contractor bills?

It has a withholding at source feature. Set up a retention code that holds back a rate on the invoice or on payment. It is not a contract retention schedule.

### How is the code linked to a supplier?

Add the code to the supplier on the Financial tab (Withholding code, field RITCOD).

### Where does the retained amount show?

On a supplier BP invoice the retention line posts to the cash account. For retention on payment the retained amount shows on the payment entry.

### Does Pulsify track retention?

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

## Sources

- https://communityhub.sage.com/sage-global-solutions/sage_x3/f/north-america-general-discussion/90125/managing-invoice-deductions-from-payment-level---sage-x3
- https://online-help.sagex3.com/erp/12/en-us/Content/FCT/GESPAY.htm
- https://online-help.sagex3.com/erp/12/en-us/Content/FCT/GESBPS.htm

Source: https://www.pulsify.tech/how-to/record-retention-on-a-subcontractor-bill-in-sage-x3/ (last checked 2026-10-19)