Entering and Paying Invoices with Retainage Using
the Subcontract Control Module

If you are using the optional Subcontract Control Module, Millennium will automatically create invoices for you based on work-in-place entries on the subcontract.  Note that the first time you enter an invoice against a subcontract, the system creates a separate invoice for any retainage withheld.  Retainage withheld on subsequent invoices will be added to this invoice.  The pay date for retainage invoices is calculated based on the number of months specified in Tools > Companies > Controls > AP.  We recommend that you set this to one or two months beyond the expected finish of the subcontract to avoid paying the retainage invoice before the contract is completely invoiced.  Here’s how it works:

Invoice Entry

1.       Create the subcontract using the Subcontracts selection on the Project Manager menu.

2.       When entering an invoice against the contract, click on Start Entry and be sure to click Sub as the invoice type.  Then select the Subcontract ID from the Browse window (F3).

3.       When the subcontract window displays, enter the Work in Place amount for each of the subcontract items being billed.  When you click OK, the program creates the invoice for you.

4.       When you finish the AP entry session, and click Exit, the program automatically creates a retainage voucher for the retainage withheld.  If you have already processed an invoice against this subcontract, the retainage for this invoice will be added to the retainage invoice created with the first subcontract invoice.

5.       In General Ledger > Process JE's, post and print the journal entry for the AP invoice just entered.  The Journal Entry will look similar to the following:

Expense Account                     1000.00

Accounts Payable                    <900.00>

Accounts Payable Retainage     <100.00>

Paying a Retainage Voucher

CAUTION!  Do not pay the retainage voucher until all contract items have been invoiced in full.

1.       Go to Accounts Payable/Invoice Review/Pay, locate the retainage voucher you wish to pay and mark it S for Selected.

2.       Indicate the amount you wish to pay if you do not wish to pay the entire invoice amount.

3.       Click on Run AP Selections, issue checks and print the audit reports.

4.       Go to General Ledger > Process JE's and post and print the JE just created in AP Selection Run.  It should look similar to the following:

Accounts Payable Retainage:    $100.00

Cash                                      <$100.00>