Applying Retainage to Documents in a Draw
Rabbet manages retainage based on document line items and the associated vendors. It is designed this way for flexibility and to ensure retainage releases are easy to track.
Navigate to the 'Documents' tab and click into the document in which retainage is outlined. This will most likely be your pay application.
Note: If your organization or vendors are tracking retainage on invoices, email email@example.com for this feature to be turned on in your account.
As noted above, retainage is associated with vendors. It is very important that the vendor is correctly assigned to the document outlining retainage.
Also, if the document is not already loaded into Rabbet as a 'Pay application', update the document type. If you are tracking retainage on invoices, the same steps apply.
In the 'Pay Application' document review modal, click 'Add Split' for each line item for which a current transaction is recorded on the Pay Application. Complete the applicable fields for each line item split. Note the following details:
The retainage for a given line item may either be entered as the total retainage to date OR the retainage this draw. Entering one will automatically calculate the other.
If the retainage is tracked as a separate line item, be sure to 'Add Split' for that special line item and input the total retainage.
Pay Application descriptions may not align with the budget line items that are tracked on a given project (different roll ups, vendors, etc.). Using the 'Internal Comments' field is great way to track which Pay App items align with a given budget line item and vendor.
Rabbet then automatically calculates the 'Current payment due' for each line item on the Pay Application using the Work Completed, Stored Materials, Total Retainage to Date, and Previous Period Retainage (from the previous draws in Rabbet).
To see this calculation, hover the cursor over the gray circle with an exclamation point and a tooltip will appear.
*Note that the 'Current Retainage' and 'Current Payment Due' figures in this window are calculated using retainage data from the previous draws in Rabbet. If the previous draws do not accurately reflect the retainage for a line item, contact firstname.lastname@example.org.
After the retainage details are input on the Pay Application document and you click 'Submit', the applicable values will be updated on the draw line items page.
If there is a discrepancy between the draw 'Current Amount Requested' outlined in the line item and the amount that you expect from the uploaded documentation, it could be due to a retainage input error on the Pay Application or invoice document.
Click into the line item to see the calculation of the 'Net Amount Requested' (same as 'Current Amount Requested') based on the retainage. If an error is found, navigate back to the Pay Application or invoice document by clicking on the link in the line item slide out.
After updating the line item documentation in the Pay Application or invoice document, click 'Submit'.
A Brief Note about the 'Retainage Percentage'
You may notice that there is a 'Retainage Percentage' in the line item slide out. Additionally, there is a 'Retainage Percentage Expected' field when you click 'Edit Amount'.
The 'Retainage Percentage Expected' value is not used for calculating retainage. Rather, this is intended as a reminder or check for what is expected. Altering this value will NOT change the calculated draw 'Current Amount Requested'.
Automatically Calculating Retainage
Rabbet allows you to auto-calculate retainage in lieu of manually entering amounts for individual line items. When this is toggled on the 'Retainage to Date' column is replaced by an 'Expected Retainage' column.
Retainage is then automatically populated by multiplying the line item amount by the 'Expected Retainage' percentage. The 'Expected Retainage' will be pulled from either the Line Item's 'Expected Retainage' or what is designated on the Vendor's Agreement.
If you do not see the 'Auto-Calculate Retainage' option in your account or you would like more information on gaining access to this feature, email Partner Success at email@example.com.
Do you have questions or feedback? Please email us at firstname.lastname@example.org.