QB Issue Resolution:

I’d be glad to lend a hand with any questions you may have about the invoices in QuickBooks Online.


If you’re trying to add a deduction on an invoice which you can’t bill until the end of the contract, you can create a Retainage item and account in the system.


First, create a Retainage account by following these steps:


  1. Click the Gear icon.
  2. Below Your Company, click Chart of Accounts.
  3. Click New.
  4. Choose Other Current Assets for the Category Type.
  5. Select Retainage for the Detail Type.
  6. For the Name, enter Retainage Receivable.
  7. Click Save.

Once done, you can proceed with creating the item:


  1. Click the Gear icon.
  2. Below Lists, click Products and Services.
  3. Click New.
  4. Choose Service.
  5. Enter a Name for the item (example: Retainage).
  6. Below Sales Information, put a check mark next to I sell this product/service to my customers.
  7. Select the Retainage Receivable account from the Income Account drop-down.
  8. Click Save.

Now I’m adding the detailed steps on how you can withhold retainage from an invoice:

  1. Click the Plus sign in the upper-right corner.
  2. Below Customers, Select Invoice.
  3. Select a customer.
  4. Fill out the remaining fields of the invoice, including the purchased line items.
  5. After entering all necessary information, select Retainage from the Product/Service column.
  6. In the Rate column, enter the amount of the retainage as a negative amount.
  7. If your retainage is a percentage, you must calculate this manually.
  8. Click Save and Close.


Here are some sample screenshots for your reference:





Resolution for Issue 'How do you enter retention amounts on an invoice?' available: Yes (Solved).
Source: Intuit Community forum.

How do you enter retention amounts on an invoice?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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