Retentions Management

Q: Can the automation handle different retention percentages from different contractors?

Yes, the automation extracts and applies the retention percentage specified on each invoice, whether it is a standard percentage or a custom amount agreed with that contractor.

Q: How does the system know when a milestone is complete?

The automation sends reminders to project managers on the scheduled release date and processes the release only after receiving confirmation that the milestone is complete, preventing premature payments.

Q: Will existing retention records in our spreadsheet be lost?

No, existing retention data can be imported into the automated system during setup, ensuring continuity and allowing you to track all outstanding retentions from day one.

Q: What accounting software does this work with?

The automation integrates with QuickBooks Online, Xero, and other mainstream accounting platforms, recording invoices and release payments directly without manual re-entry.

Retentions tracked and released when defect periods expire.

767 hrs

Manual time identified

Companies have mapped

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About This Automation

Retentions management involves tracking withheld payments from contractor invoices until project milestones are complete. Manual extraction, calculation, and monitoring across spreadsheets creates delays, errors, and missed release dates.

Automation reads incoming invoices, extracts retention terms, monitors release dates, and coordinates milestone confirmations. The result is faster payment processing, fewer missed deadlines, and a single source of truth for all retention records.

Key features:

Extract retention terms and amounts automatically from incoming invoices

Calculate net payable amounts and track retained balances in real time

Monitor release dates and trigger reminders when milestones approach

Coordinate milestone confirmations and generate release invoices on approval

Record all transactions in accounting software without manual data entry

Send payment confirmations and update retention status automatically

Data insights How it works Apps used What you get FAQ

Top friction points when done manually

The issues teams report most often with this process

#	Friction point	Companies Report This
1	Manual milestone date lookup Clerk must search project schedules and email threads to find the correct release milestone for each invoice.	80%
2	Weekly manual spreadsheet review Finance manager manually scans the entire retention tracker each week to identify approaching release dates.	67%
3	Data entry across multiple systems Retention details are manually entered into spreadsheets and then re-entered into accounting software.	53%
4	Delayed milestone confirmations Project managers may take days to respond to release requests, delaying payment and creating follow-up work.	40%
5	Tracking spreadsheet errors Manual calculations and data entry lead to retention amount discrepancies and missed or duplicate releases.	26%

Disclaimer

Automation readiness

How well-suited this process is for automation

Process Pain Score™

8.5/ 10

AI Fit Rating™

8.6/ 10

Automation Lift Index™

8.4/ 10

Hidden Overhead™

7.1/ 10

How The Automation Works

The full workflow, from trigger to completion.

1. Invoice with Retention Receivedtrigger

An email arrives with an invoice attachment containing retention terms. The automation is triggered when the email lands in the designated inbox.

2. Extract Retention Data

The automation reads the invoice PDF, extracts the invoice amount, retention percentage, project name, and milestone reference, and returns structured data.

3. Calculate Amounts

The automation calculates the retained amount and net payable amount, then looks up the project milestone date from a reference table.

4. Record in QuickBooks

The invoice is created with the net payable amount, and a retention record is logged with the release date.

5. Log to Retention Tracker

The retention details are appended to the master tracker with invoice number, amount, contractor, and release date.

6. Schedule Release Notification

A reminder is automatically scheduled to notify the finance manager 3 days before the release date, prompting them to confirm the milestone.

7. Create Release Invoice

On the release date, if the milestone is confirmed, a new invoice for the retained amount is automatically created in QuickBooks and marked ready to pay.

8. Send Payment Confirmation

A payment confirmation email is sent to the contractor with the payment date and amount, and the tracker is updated to mark the release complete.

Most popular tool stack used

— the complete tool combinations companies use

52% of companies

28% of companies

15% of companies

Disclaimer

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ROI and business case

What this process costs today and what changes once it's automated.

Launch schedule

What gets built, in what order, and what success looks like once it's live.

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Developer handover pack

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Integration and connections guide

Every tool connection, credential, and data mapping the build needs.

Test and QA plan

508 hrsIdentified

4Mapped

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Frequently asked questions

Everything you need to know before mapping this process.

What happens to invoices that arrive without clear retention terms?

The automation flags invoices with missing or ambiguous retention information for manual review by the accounts payable clerk, who can then confirm the terms with the contractor before the invoice is recorded.

Can the automation handle different retention percentages from different contractors?

How does the system know when a milestone is complete?

Will existing retention records in our spreadsheet be lost?

What accounting software does this work with?

View more FAQs

Process pain:8.5/10

Mapped by:13 Companies

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Page updated 10 August 2026