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Cr Retention Purchasing
Both balances are categorized under Trade Payables. However, when a Retention Document is created, a portion of the payable is withheld and will not be paid until the agreed period ends.
When processing the Bank Payment, the invoice received is split into two sections, post the document, excluding the retained amount from the payment.
Once the agreed period ends, the retained amount can be released by using the Transaction Type as a reverse option in the Retention Purchase Document. To do this, create a Reversal Document by using the Generate Retention Transaction (Purchasing).
The details will be filled automatically, check the details and post the document.
The below entry will be created-
DR Retention purchasing
CR Current Trade Payables
Create a Bank/Cash Payment Document using the Generate option from Invoice Received to process the final payment and close the invoice.
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