Users of financial statements need to see retentions withheld from Receivables and Payables to provide clarity. The software already accounts for retentions; the balance sheet should show retentions accordingly. Receivables and Payables are in the 'current' sections of the balance sheet; retentions are also 'current' but not due as are the net balances of the AR/AP invoices. Combining retentions with other receivables/payables on the balance sheet is misleading. Users of the financials should not have to go to the agings and make a separate calculation to see receivable and payables balances due in the current period.

by: Geza P. | over a year ago | Accounting Reports