Retentions

Bizprac streamlines the management and claiming process for both creditor and debtor retentions, ensuring contract fulfillment and compliance.

Introduction to Retentions

Bizprac facilitates the claiming of creditor retentions through a structured process, allowing for full or partial authorisation of retentions. Once authorised, retentions can be claimed, generating invoices marked with 'RI' for easy identification and payment processing, ensuring accurate financial transactions and compliance​​. Retentions is a percentage of a payment that is held either by a client or the main contractor as security to ensure that the works will be completed and any defects that arise will be rectified. Retentions are calculated as a percentage of the contract value. In some cases a Bank Guarantee may be provided instead of Retentions. Alternately a combination of retentions and bank guarantee can be used.

Debtor Retentions

A debtor retention is an amount that is retained or deducted from an invoice submitted to a debtor. The Debtor can only do this if we have a signed contract for a job/project agreeing to the retention terms. This money is held to ensure the completion of the contract and will be released in accord with the terms of the contract.

Claiming a Debtor Retention

All outstanding retentions will be listed in the Debtor Retentions. Sorts can be applied by Debtor or by job. Reminders and due dates can be set.

Creditor Retentions

A creditor retention is an amount that is retained or deducted from an invoice submitted by a creditor. The retention is deducted from submitted invoices as security for the completion of works and or defects to a satisfactory standard. In QLD, Retention Trust accounts must be used for the management of retention funds. Please refer to the Trust Account guide for details. In Bizprac, Creditor Retentions are setup through the Creditor Contracts window. A contract can be entered manually or created from a purchase order.

Claiming a Creditor Retention

Select a Retention

Begin by selecting the Retentions for Contract tab and select the required contract. Retentions can be authorised in full or part authorised.

Part Authorise Retention

1. Highlight the retention to claim, then click part authorise.
2. Then select the retention you are claiming and apply a part authorised amount.
3. Click save to continue.

Authorised

1. All authorised retentions will then be listed ready to claim.
2. Repeat the steps for the required claims.

Claim the Retention

1. Once all of the retentions are authorised, highlight the ones/s you are claiming.
2. Click create invoice, you will be able to adjust the date if required.
3. Then click create invoice, the invoice will be generated and be available in the creditor invoices window.

Creditor Invoices

1. Invoices for the release of a retention are marked with a RI
2. Invoices can then be processed for payment.

Back Charges

1. Click on the back charges option to open the back charges window.
2. Select new to begin add the details of the back charge.

Details

1. Add the reason for the back charge, include the amount and a brief description outlining why the back charge is being applied.
2. Once complete click save. A copy of the back charge can be forwarded to the subbie.

Bizprac staff cannot offer advice on contractual issues. The Retentions accounting is compliant with the information provided by the ATO at the time of this guide being produced. The information in this guide is indicative only and may not reflect your individual circumstances.

Clients

Expertise IN PRACTICE

We look forward to helping you to understand our software and how it can help your business to grow and be more profitable.

1800 009 970 | sales@bizprac.com
Unit 8, 45-49 Commercial Drive,Shailer Park, QLD 4128

More

FREQUENTLY ASKED QUESTION

What is Bizprac and who is it for?

Bizprac is an Australian construction platform with fully integrated features built for Australian builders by experts in the industry. Our platform enables builders to run their entire business end-to-end. Bizprac has integrated major functions such as accounting, estimates, invoicing, payroll and all you need to run your business.

What features do Bizprac offer?

Our comprehensive set of key features can be found here. We've designed the Bizprac platform to uniquely cater to Australian construction companies and have included features for builder retentions, estimates with structures, digital takeoff that is powered by ExtrAXION and other features critical to a construction business. We also allow you to manage multiple projects at no additional cost.

Can Bizprac handle payroll and accounting?

Not only can we handle payroll and accounting, but we make it super easy for you! Bizprac's end-to-end accounting gives you real-time insights into your project's health, including job cost controls, estimates, timesheets and easy dashboard reporting. Our Single Touch Payroll allows you to run payroll with a click of a button and automate submissions to the Australian Tax Office (ATO).

Is Bizprac easy to use?

We pride ourselves to be a no-frills, straight to the point platform. We've also assisted and provided hands-on support to all of our clients, starting from implementation and setup to after-sales or technical support thereafter.

How does Bizprac improve construction business management?

Bizprac is here to ensure you deliver projects on time and on budget. We enable construction business owners by ensuring their project never overruns and maximizes profitability.

What is Bizprac and who is it for?
What features does Bizprac offer?
Can Bizprac handle payroll and accounting?
Is Bizprac easy to use?
How does Bizprac improve construction business management?