Unanet would like to thank Liz Jimenez and JRC Integrated Systems, Inc. for documenting this method, which demonstrates how our customers are maximizing their use of Unanet. 

Title: How does Unanet handle fixed fee retention on cost plus projects?

Brief description:

It is relatively common for a Cost Plus contract to include a fee retainage clause. For example, a contract may have a 5% fee but the contractor is required to retain, or not bill, 15% of that fee each billing period. Most often this retained fee is accounted for as revenue in the period earned and as an unbilled receivable. When the contract is complete and the contractor has performed up to contract standards, the retained fee may be billed.

What’s covered in this document:

Additional Item (Recommended Method)

This method handles the retention via additional items.

Initial Setup of “Additional Item” to be used on the invoices:

Every time an invoice is created:

Reporting on the Fee Withheld:

On permission to bill final fee:

Reporting after final fee is billed:

Special Note about Additional Items

Note: Additional items are not taken into account when calculating funding caps. As a result, you may consider reducing your funding cap amount by the retention amounts or additional item amounts.

Additional Information

Help Docs - Project Profile (see Accounting Tab) 

Help Docs - Additional Item Setup 

KC - Quick Topic - How to handle the four general types of cost-reimbursement (CP or Cost Plus) contracts in Unanet

KC - FAQ - How can I recognize retained/unbilled fee revenue on a Cost Plus contract without impacting AR Aging or showing on the invoice until billed?