Adjusting AR Invoices with Retainage in Sage 300 CRE

Adjusting AR Invoices with Retainage in Sage 300 CRE

Overview

In this article, we'll guide you through the process of adjusting Accounts Receivable (AR) invoices with retainage in Sage 300 CRE. We'll use an example based on data from a test company to make the steps clearer.

Example Scenario
Let's consider an invoice for $1,000 with a 10% retainage. This means that the net invoice amount is $900, with $100 being the retainage. Refer to the image below for a visual representation:




1. Adjusting the Invoice Amount:
  1. Our task is to adjust the invoice down to $600, minus the 10% retainage, which amounts to $60.
  2. After the adjustment, the new invoice amount should be $560, with a retainage of $60.
  3. To achieve this, we will reduce the invoice by $400, excluding the retainage of $40.

2. Enter Adjustment Details: 
  1. Go to AR > Task > Adjust Receivables.
  2. Select the client in question.
  3. Enter the Adjustment Date on the right.
  4. Select the invoice from the list below.
  5. Click "Adjust..." to proceed with the adjustment.


3. Adjusting the Invoice
  1. On the next screen, keep the Adjustment Type as "Bill Credit."
  2. Enter the Adjustment Date on the left side.
  3. At the top, enter the total amount of the adjustment. In our example, we are adjusting the invoice by $400 and $40 of retainage, resulting in a current amount of $360 and retainage of $40.
  4. Once the date and amounts are entered, click on the "Distribution" button to allocate the amount to each distribution line.
  5. If you are adjusting an invoice with a single line, there is no need to change anything under the Distribution section.
  6. Click "Finish" and then "Finish" again to complete the adjustment.
  7. Finally, post the entries to save the changes.


4. Impact of the Adjustment:
After completing the adjustment, the following changes will occur:
  1. The original invoice amount of $1,000 will be adjusted to $560.
  2. The retainage will decrease from $100 to $60.
  3. The invoice has been successfully adjusted in Sage 300 CRE.

 
 





Conclusion:
Adjusting AR invoices with retainage in Sage 300 CRE is a straightforward process that involves selecting the invoice, specifying the adjustment amount, and distributing it accordingly. Following these steps will help you accurately adjust your invoices as needed.