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You have the option to select Standard Retention Type or t he the Sliding Scale.
In this first example, let's select Standard Type.
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5% Retention for $800 is $60.00
Scenarios
If you have multiple scale retention limits limits and at the end, the remaining amount is bigger than the last retention limit amount, it uses the full invoice remaining amount, not the retention limit amount and calculate calculates the retention percentage for that invoice remaining amount.
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In the following image, we have have an invoice with a value of $2,000.00 ex tax as a Fixed Price.
Based on the three retention limits set, the retention amount is equivalent to $67.75.
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Scale retention limit amount | Scale retention limit percentage | Invoice retaining amount | Invoice remaining amount |
200 | 10% | 20 | 1800 |
500 | 5% | 25 | 1300 |
1000 Remaining The remaining balance is 1300 therefore it uses this amount to calculate a 1.75% retention | 1.75 | 22.75 | 0 |
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You can also set your maximum retention limit limit and if this is enabled, the value you put here will be used if the retention value is higher based on the scale retention limits.
If we use the same example earlier earlier wherein the retention value is $67.75, once the maximum retention limit is enabled for $50.00 then the actual retention amount will be $50.00.
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