Construction
Retention Payable to Subcontractor
Withholding a percentage of a subcontractor's payment as a guarantee for their work quality.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Subcontractor Expense | Expense (+) | 10,000.00 | - |
| Cash / Bank | Asset (-) | - | 9,000.00 |
| Retention Payable (Contractor) | Liability (+) | - | 1,000.00 |
💡 Accountant's Note
Common in Jordan's construction sector. You pay the sub 90% and keep 10% (Retention) until the 'Defects Liability Period' is over, usually one year later.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.