Applying a Billing Holdback

You withhold and release holdback on the items of a custom billing schedule. Each item can withhold a percentage of its own amount, and any item can release the holdback that earlier items withheld. For more information about how holdback is calculated and released, see Billing Holdbacks Overview.

Holdback is available on fixed price records only. To apply a holdback:

1. In the Estimate Milestones grid, click Manage Billing Schedules.
2. On the estimate product, independent record, or billing group, click Manage Custom Billing Schedule in the row level actions.
3. Click to add a custom billing schedule item.
4. Enter a Billing Date for the custom billing schedule item.
5. Enter a flat amount or percentage for the custom billing schedule item.
6. [Optional] In the Holdback (%) column, enter the percentage of the item to withhold, between 0 and 100. The Net Payable column displays the amount that is billed for the item after its holdback is withheld.
7. [Optional] To release the holdback that earlier items withheld on this item, select the Release Holdback field. The Net Payable column is updated to include the released amount.
8. Repeat steps 3–7 until the total amount has been distributed across the custom billing schedule items.
9. Click Apply.

To remove an item from the schedule, click the row level actions for that item then click Delete. Row level actions are unavailable when the schedule is read-only.

Notes:

• A schedule that withholds more holdback than it releases is flagged with a warning in the Estimate Milestones grid, showing the outstanding amount. You must release the outstanding holdback before you can create a project from the estimate.
• Selecting the Release Holdback field on an item does not release the holdback of that item. If the item also has a Holdback (%) field, that percentage is withheld and carries forward to the next item that releases holdback.