Service Item 10% Holdback is set up to be recorded as a Debit to Retainage AR, but is being recorded as Debit against Sales by QBO, and that's not correct. How to fix it?

Hi there ranka, 

It's vital that all your products and services are set up correctly in your account in order for your sales and expenses to be recorded properly. QuickBooks Online is a great tool able to help you enter all your sales as well as send them to your customers.  I can provide some information about products and services. 

In order to change the income account for a product, you can do so by navigating to the Sales tab, then Product and Services. Click on the option to edit beside the product in question to make sure the income account is correct.

If the income account was already correct, I recommend reaching out to our support team outside of the community. They'll be able to view your account with you in a secure setting to help you make sure the transaction affects the right account. You can reach out to them using one of these options:

Schedule a Callback or start a Chat: click (?)Help in the upper right > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat. 
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If you have any other questions, feel free to reach out here.