How to include hold back in customer invoice

Hi ravi-karthigesu,

Welcome to Community!  When your customer requires a certain percentage of an invoice to be held back, QuickBooks Online allows you to enter the retention amounts effortlessly, once you have it set up.  I'd be happy to show you how!

To begin, you'll need to create a 'retainage' account.  Here's how:

1. Click the Gear icon in the top right and select Chart of Accounts

2. Hit New

3. Choose Current Assets for the Account Type

4. Set the Detail Type to Retainage

5. Give it a name

6. Complete any additional fields as you see fit and then Hit Save.

Now you can create the item by following these steps:

1. From the Gear icon, open Products and Services

2. Click New and choose Service

3. Give it a Name (example: Retainage)

4. Under Description, check mark next to I sell this product/service to my customers

5. Select the Retainage account from the Income Account drop-down

6. When finished, hit Save and close

You're ready to withhold the retainage from the invoice.  Here's how:

1. Hit New from the left menu and then select Invoice

2. Choose the customer

3. Complete the remaining fields of the invoice, including the purchased line items

4. On the next line select Retainage from the Product/Service column

5. Enter the amount of the retainage as a negative amount in the Rate column

Note: If your retainage is a percentage, you must calculate this manually

6. Hit Save and Close when done

You're all set!

If you have any other questions, please feel free to reach back out.  We'd be glad to help!