How to record Retainage Payable

[NPH]

I am looking for a way to post to multiple payable accounts. For construction contractors usually they hold back a % of the total invoice untill the job is done. I have two A/P accounts but every time I try to post in the add bills section it says you can only use one A/P per invoice. Has anyone found a way around this? I am currently posting the retainage amount to a "other current liability account" Or some times I enter the invoice twice. Any help is greatly appreciated. Thanks

[BOB W]

I am looking for a way to post to multiple payable accounts. For construction contractors usually they hold back a % of the total invoice untill the job is done. I have two A/P accounts but every time I try to post in the add bills section it says you can only use one A/P per invoice. Has anyone found a way around this? I am currently posting the retainage amount to a "other current liability account" Or some times I enter the invoice twice. Any help is greatly appreciated. Thanks

In order to have "Retainage Payable" you need to debit Accounts Payable and credit Retainage Payable with a general journal entry. Retainage does not increase the companies payables.

I know you would like to make a compound entry at the time of getting the invoice but if the program doesn't allow it this is the only choice.

[Snaggletooth]

One Payable Account

You don't need more than one payable account, what you need is a multiple posting for a single obligation to be paid. If you have $50,000 in construction work, and a $2,500 retainer, you would need to enter a bill into payables for $47,500 right?

Enter the bill for $47,500. For account distribution, enter:

$50,000 Construction Cost
($2,500) Other Liabilities

[S T]

Nph

NPH,
While your posts have be asked and answered, most of us on the Board know that you are not a Tax Professional. You seem to be an bookkeeper/accountant/financial officer in charge of this particular company that you are working for. And the activities of the Company are something that you are not familiar with.

So I guess to continue and be recognized on this Board, you will have to purchase the Tax Book and hopefully with that resource material, you will be able to answer some of your own questions.

However, it seems like you have so many questions on accounting entries, that you proably should seek a CPA or EA in your area that you can team up for consulting on some of your issues.

As stated by most of us we don't mind providing free knowledge and assisting, but I think you have surpassed that. The information that has been provided on this Board in answer to some of your questions would carry some type of hourly rate by most professionals.

Do yourself and the company you work for a favor, and find a local professional in your geographic area.

Sandy

[Snaggletooth]

Owner's Responsibility

What I read into NPH situation -- 24 yrs old, works for a contractor. Contractor is probably holding the purse strings and unwilling to pay a qualified tax practitioner more than once a year. Not unusual for this employer to be a QuikBooks user, and think hiring a guy plus QuikBooks will solve all his accounting problems. From what I remember about NPH, most of his questions have been accounting-related and not tax-related.

Whereas even if all the above be true, everything said by S.T. is nonetheless true. NPH would find his situation greatly improved if The Tax Book were purchased, then he will have the new password, as well as the book to answer common questions.

[S T]

Quickbooks

NPH, if you are working for a Contractor, Quickbooks has a Contractors Version,k that you should probably look into. It will do job costing, track job profitablity, track inventory parts and will handle the retention payments.

You might want to look into upgrading to the Contractor's version, then also sign up for a class on how to use Quickbooks, or contact a Quickbooks Pro Advisor in your area to assist you and troubleshoot.

Sandy

[JoshinNC]

Or maybe you shouldn't have taken the job to start with

This isn't working as fry cook, you don't just wing it and hope you figure it out. Do yourself and your boss a favor and quit now before you create such a big problem that you cost your boss more money than you're worth.

[Corduroy Frog]

I remember being 24

..and having a job with a building contractor in a small town. Finishing my degree in Nashville at night 60 miles away, and playing keyboard in sleazy honky-tonks on weekends. I knew very little about taxes/accounting -- there was no message board and the boss paid a CPA to come in once a year to make the bank and IRS happy.

There was a lot of "multi-tasking" in his office -- a maximum of three people at any given time. Bookkeeping/Payroll was only about 30% of my job. I was able to learn quite a bit, and being young, absorbed information like a sponge.

If someone had tried to get me to quit, my boss would have had them run out of town.

[Lion]

QB Message Board

Definitely take QB training on your own. Also, ask your boss to pay for a QB ProAdvisor to come in to train you on his company's specific situations. Look for a local QB users' group to attend. And, ask your questions on a QB message board. I think they even have a board for the Contractor's Edition.

[JohnH]

I wholeheartedly second the recommendations on QB training - full course, not a quickie in-service.

I've been a QB advisor since they started the program, and I stll resist client's efforts to have me "come in for a couple of hours and train their folks". It can't be done that way. I've been telling clients for years that if they aren't willing to invest in some in-depth training on how to use QB properly, don't bother buying the program. It'll just get you in trouble.