To handle retainage, you first need to set up an asset account for your
outstanding retentions receivable.
To do this task
Go to the Lists menu and click Chart of Accounts.
Click Account at the bottom of the list and then click New.
Click the Type drop-down list and choose Other Current Asset.
If you use account numbers, enter 1320 in the Number field.
In the Name field, enter Retentions Receivable.
Handle customer retention or