How to Record Contract Retention
Recording the amount withheld by the government from progress billings until contract completion.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Billed Retention Receivable | Asset | 15,000.00 | - |
| Unbilled Receivables | Asset | - | 15,000.00 |
💡 Accountant's Note
Retention is often used in fixed-price incentive or cost-plus contracts where the government holds back a percentage of the fee or price until final audit/delivery.
Practitioner & Systems Framework
💻 ERP Architecture
Assign a distinct billing status or hold-back code in the AR module to track retention specifically.
⚠️ Audit Flags
Aged retention balances that have not been reconciled with the final contract closeout.
📄 Required Documentation
Contract billing instructions and DD250/WAWF submission records.
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Discussion & Community Questions
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