How to configure the customer retainage process for Microsoft Dynamics AX 2012
Retainage is the money that is owed by an upstream party to a downstream party to ensure the agreed project work satisfies the contractual obligation. It is an essential part of the billing cycle in the contracting and construction industry. To understand how to manage retainage - also known as retention - in the context of a business process managed by Microsoft Dynamics AX 2012, this article will explore both the business rules and system setup behind the model.
There are two types of retainage - withheld "by customers" and withheld "from vendors". This article will only cover retainage withheld by customers.