How does retainage work?
Set the share your client holds back on a job once; every bill holds it, and you release it with one invoice.
Retainage is the share of each progress bill your client keeps back until the work is accepted — often 5 or 10 percent. Set it on the job from the Billing page, from 0 to just under 50 percent.
Every bill closed on the job from then on holds it back. The invoice shows the gross, the retainage held and the net due; the net is what the client owes now, so it is what the late-payment aging counts. Retainage sits in its own column and is never counted as late.
When the time comes, raise a retainage release from the Billing page — for everything still held, or part of it. Veristep won't release more than is held, even if two people try at once. The release is an invoice of its own, sent to QuickBooks or to your client the way you normally do, and it doesn't count as new billing on the job.
In QuickBooks, retainage goes to a Retainage Receivable account, not to income, and the release takes it back out.