Retainage Calculation Example

In this example, the information in this table is set up in the Retainage Rules Information table (F5204):

Percent Retainage	Percent Complete
10 percent	50 percent
5 percent	95 percent

The billing line types to include are cost billing lines only, and the Cumulative check box is selected.

The total schedule of values is 500,000 and the invoice amount is 485,000.

The invoice amount of 485,000 is 97 percent of the total schedule of values of 500,000.

Because the first line of the table goes through 50 percent complete, 10 percent retainage is calculated on the first 250,000 (the first 50 percent of the schedule of values) of the invoice.

250,000 x 10 percent = 25,000

Because the second line of the table goes through 95 percent complete, 5 percent retainage is calculated on the next 225,000 (the next 45 percent of the schedule of values) of the invoice.

225,000 x 5 percent = 11,250

Because no lines remain in the table, no retainage is calculated on the remaining 10,000 of the invoice.

The total retainage for this invoice is calculated as:

25,000 + 11,250 = 36,250