Subcontract Retention
Subcontract retention is a percentage of a committed amount that is held until a specified date after the order is complete. Retention processing applies to ongoing projects and applies only to services lines. Retention is not applicable to inventory-based purchase-order lines for which the full cost of the product is due upon receipt of the product.
Note: In some industries, subcontract
retention may be called retainage. Thus, the terms retainage and
retention may be used interchangeably.
See Processing Retainage.