How do i enter retainage on an invoice so that it can be tracked on the amounts owed and when the retainage is or should be released?

Thanks for taking the time to post your concern in the Community, Coffman. Let me provide some insights and help you add a retainer amount to your invoices.

In QuickBooks Online, you can set up a deposit or retainer system for your company. The deposit or retainer is recorded as a liability until used to pay for services. When you invoice the customer and receive payment against it, the liability turns into income.

First, you'll need to create a liability account to track the retainers you receive from your customers. Below are the steps to complete the process.

1. Go to the Settings and choose the Chart of Accounts.
2. Select New.
3. Under the Account Type drop-down list, select Other Current Liabilities.
4. Under the Detail Type drop-down, choose Trust Accounts - Liabilities.
5. Enter a name for the account, or accept the suggested name.
6. Select Save and Close.

Next, create a retainer item service. Here's how:

1. Go to Settings, then select the Products and Services.
2. Click the + New.
3. From the Product/Service information panel, pick Service.
4. Enter a name for the new product or service item (ex. Retainer).
5. From the Income Account drop-down list, pick Retainage Receivable account.
6. Once done, click Save and Close.

Once done, you can now create invoices for customers. To do so, here's how:

1. Click the +New.
2. Select Invoice under Customers. 
3. Select the Customer name from the drop-down.
4. Fill out the remaining fields of the invoice, including the purchased line items.
5. In the Product/Service column, select the Retainer or Deposit item you set up.
6. In the Rate column, enter the amount of the retainage as a negative (-) number.
7. Click Save and Close.

For more information about retainers, refer to this article: How to Record a Retainer or Deposit?

In addition, to track the assistance provided to each customer in the Balance Sheet report, please refer to the following article for more information: Run a Balance Sheet report in QuickBooks Online.

I've also collected these resources that you can read for reference in managing your reports and accounts:

• Customize reports in QuickBooks Online.
• Reconcile an account in QuickBooks Online.
• Memorize reports in QuickBooks Online.

If you need further assistance or have concerns regarding retainers of invoices and tracking transactions, you can leave a comment below, and I'll be happy to help you. Have a great day ahead!