Customer Retentions
A portion of customer payment temporarily withheld until specific project conditions, milestones, or final completion requirements are met.
Overview
Customer Retentions in Project Management and Accounting refer to a portion of the customer payment that is temporarily withheld until specific project conditions, milestones, or final completion requirements are met.
Retention management is commonly used in industries such as construction, engineering, and long-term contract projects to ensure quality and contractual compliance before full payment is released.
What You Will Learn
1Configuring customer retentions
2Setting retention percentages
3Managing retention invoices
4Releasing retained amounts
5Tracking retention balances
6Understanding accounting entries
Key Benefits
Ensures project quality compliance
Reduces financial risk
Improves contract control
Tracks pending customer payments accurately
Enhances project financial visibility
Supports contractual retention management
Key Features
Retention percentage setup on projects or contracts
Automatic retention amount calculation
Separate tracking of retained amounts
Retention release management
Integration with customer invoicing
Accurate revenue and receivable tracking
Supports milestone and final retention release
Suitable For
- ERP Consultants
- Project Accountants
- Finance Teams
- Billing Teams
- Dynamics 365 F&O Learners
- Project Managers
How Customer Retentions Work
Project Contract Created
Customer Invoice Generated
Retention Amount Withheld
Project Work Continues
Project/Milestone Completion
Retention Invoice Released
Final Customer Payment Received
Modules Involved
- Project Management and Accounting
- Accounts Receivable
- General Ledger
- Billing and Invoicing
- Financial Reporting
Customer Retentions are essential for 👉 Contract compliance + Payment control + Project financial visibility in Project Management and Accounting.