would you like to celebrate doing the very last transaction of a contract well done well then
this video will show you how to record receiving the final retention retainage payment hooray
if you have any questions about this topic you can leave them in the comments section below and i'll
do my best to help you and of course if you feel the video helped you i hope you will click like
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are two different ways to record receiving the final job retention or retainage payment
the first method is the most simple one just use the deposit window let's imagine we sent
the retention report to kirsh baum's woodbury job on july 1 of 2018 as a request of payment
like we're billing the invoice for the dollar amount of the remaining retainage withheld
and let's say they gave us a direct deposit and we can simply use the deposit window but first let's
take a look at the dollar amount of kirschbaum's woodbury job total retention retainage
you're not going to trust them to pay what they say right so we did create the retention report
retention receivable in the prior uh video and when we open it up and you look closely you can
see that it shows all the retention that is owed to you from all of the different clients and only
four out of the five invoices that retention was retained from are for the kirschbaum woodbury job
you can move the mouse here and stretch open the name and see we want to bill only kirsh baum and
we want to bill him only for the ones for his job the brown company that's someone else's retention
will get to later as we learned in a prior video you could customize this report and filter by name
push the letter n for name and just do kirschbaum south uh wood excuse me woodbury job click ok
and now this would be the report the report that's filtered specifically for that one job
that would be the report that you would click print and you would send to the client as a
formal request for payment and it would show the dates and the invoice numbers and amounts
withheld from each invoice so that the client could know the reason why they have to pay the
total five thousand now if they go to pay the five thousand for retention receivable
what will be the result in the trial balance well retention receivable will decrease by
five thousand and cash and bank will increase by five thousand so let's go back for a second
we had a direct deposit of five thousand so cash and bank goes up by five thousand and will become
nine thousand seven hundred but we no longer have kirschbaum's woodbury job retention receivable
so that would decrease by five thousand and only the brown companies 625 receivable
would be in that general ledger account that represents what we are owed
let's take a look at how to record it very simple we click banking make deposit
now all we have to do is choose the correct bank account the money is going into
the date which i believe was july 1 of 2018 i hope okay and we did receive
from kirshbaum the woodbury job okay just click ok but the account the specific account
is retention receivable that's really where the money is coming from because he owes us 5 000
for all the accumulated retention now when we click save and close it does not show up on the
retention receivable report that we just filtered even though we chose the kirschbound woodbury job
but if you open the trial balance you can see the results are as exactly as what we expected
the cash in bank increased by 5000 and the retention receivable decreased by 5000 and if you
open it up you see that in this report at least it shows a minus to the overall retention receivable
and this 625 is only brown companies remaining retention receivable you