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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / VENDOR INVOICE RETENTION
Small and medium business | Business Central, N...
Suggested Answer

VENDOR INVOICE RETENTION

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Posted on by Oluwseun Abati 82
Hello,
 
Please how do i handle retention on a supplier invoice. This is the expected invoice journal entry with a 5% retention agreement for example.
 
Invoice
Dr item                            5000
Dr VAT (18%)                  900
Cr Vendor                        5605
Cr Retention (5%)           295
 
How do i get this result on BC?
Categories:
Dynamics 365 Business Central
I have the same question (0)
  • Gerardo Rentería García Profile Picture
    Gerardo Rentería Ga... 25,555 Most Valuable Professional on at
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 32,200 Super User 2026 Season 1 on at
    Business Central doesn't really have anything out of the box for invoice retentions without customizing the system or getting an add-on that does it.
     
    You could try to use invoice prepayments, on an order you would create a prepayment invoice for 5%. This would essentially be your retention agreement/invoice. Then you would post the final invoice for the remaining 95%. This way from 2 orders you would have 2 invoices, 1 for 5% and 1 for 95%. 
     
     
     
    Valentin Castravet
    Zander ERP Services
  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 99,084 Super User 2026 Season 1 on at
    As Valentin mentioned, this functionality is not available in BC, I remember it is in AX.
    Hopefully the discussion below can give you some tips.
     
    Thanks
    ZHU
  • JJMc Profile Picture
    JJMc 291 on at
    If you like, I work for a Microsoft partner and I have made an extension to achive this.
    If you want further information you can contac me in jmadrigal@tecon.es
     
    Kind regards

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