Example Setup

In this example, one retainage rule is set at the contract level. The calculation is based on 30 percent completion of the contract. The control flag is set to blank to create retainage in A/R with no deferred taxes. The T and M line has a schedule of values.

This retainage rule is set up in the Retainage Rules Table program (P5204):

Retainage Rule	Description
D	10 percent Retainage until 30 percent Complete

This contract is set up in the Contract Master Revisions program (P5201):

Contract Part	Retainage Rule	Offset	Control Flag	Tax Explanation	Tax Rate/Area
Contract	D	RETN		S	D1 = 3.5 percent