How to configure a subcontractor retainage process for Microsoft Dynamics AX 2012
Subcontractor retainage is the money that is owed by a prime contractor to ensure the agreed subcontractor work satisfies the contractual obligation. It is an essential part of subcontractor invoicing cycle in the contracting and construction industry. To understand how to manage retainage in the context of a business process managed by Microsoft Dynamics AX, 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 subcontractors. This article will only cover retainage withheld from subcontractors. If you are looking for retainage withheld by customer, please read this earlier article.