Bill Deduction
Bill Deduction records what the client withholds from a bill — retention, statutory tax, penalties, recoveries. On tender work the certified amount is almost never the invoiced amount, and this is where the difference is captured rather than written off.
Where to find it
Go to TenderPro > Bill Deduction.
What the list shows
| Column | Description |
|---|---|
| Project | The contract. |
| Customer | Who made the deduction. |
| Invoice | The bill it was taken from. |
| Date | When it was applied. |
| Amount | How much was withheld. |
| Status | See below. |
Statuses
| Status | Meaning |
|---|---|
| Open | Withheld and not yet recovered. |
| Partially Refunded | Some of it has come back. |
| Fully Refunded | Recovered in full. |
| Voided | Reversed. Show Voided includes these in the list. |
Recording a deduction
| Requirement | Detail |
|---|---|
| Deduction item | Required — the category the withholding falls under, from your Bill Deduction Category setup. |
| Debit or credit amount | One or the other must be entered. A deduction with no value will not post. |
| Date | Must be valid. |
Record the deduction when the client certifies the bill, not when you notice the payment is short. A deduction entered late means the receivable was overstated in between, and the shortfall looks like a payment problem rather than a contractual one.
Recovering deductions
Retention and similar deductions are released at the end of the contract or defect period. Record the release through Refunds, which moves the status from Open to Partially or Fully Refunded.