The retainage is entered on a second line as a negative amount, using identical coding as on the first line, except that a specialobject code must be used as outlined below. Forms Preparation Exhibit A shows the coding of vouchers containing withheld retainage. This cost center should be the same as the one against which the contract was encumbered. The liquidation information that appears on the expenditure charge line should also appear on the retainage line to restore the encumbrances in the amount of the retainage. When charging more than one cost center, the amount retained should be prorated among the cost centers as illustrated in Exhibit B .
Exhibit C shows how to code the voucher when the retainage is paid to the contractor.
The same cost center must be used to ensure that the liability is removed from the same fund in the General Ledger.