Managing retainage becomes increasingly complex when dealing with multiple pay applications within a single draw for the same vendor and line items. To ensure accuracy and avoid common pitfalls, it’s crucial to understand the process of tracking retainage in this context. Here’s your step-by-step guide to getting it right every time.

1. Input Costs: Begin by entering the costs for this period as usual. If stored materials are applicable, ensure they are accurately reflected in the stored materials column.

2. Auto-Populate Retainage to Date: The system will automatically populate the retainage to date based on previous draws, providing you with an up-to-date figure.

3. Specify Retainage for This Period: Input the retainage amount for this period, which the system will use to calculate the cumulative retainage.

Step 2: Entering the Second Pay Application (Within the Same Draw)

Handling a second pay application within the same draw introduces a unique challenge:

Understand Retainage to Date Calculation: Unlike a straightforward continuation, the retainage to date from the first pay application won’t carry over automatically to the second within the same draw. Rabbet calculates retainage to date on a draw basis, not by individual pay applications within that draw.

Here’s How to Enter the Second Pay Application:

1. Input Costs and Stored Materials: Enter the costs for this period, ensuring stored materials are correctly logged in the stored materials column, if applicable.

2. Auto-Populate Retainage to Date: The retainage to date will auto-fill based solely on the current pay application, without including the retainage from the earlier pay application within the same draw.

3. Calculate Retainage This Period: Use this formula to determine the retainage for the current period:

Retainage This Period = (This Period Costs + Stored Materials, if applicable) - Current Payment Due.

Step 3: Finalizing the Draw

Once all pay applications within the draw are complete:

When you create the next draw, the system will automatically aggregate all previous retainage entries, providing an accurate retainage to date that reflects all historical data.

Do you have questions or feedback? Please email us at help@rabbet.com