Contractors and service companies do not deliver bags or boxes; they deliver progress. They bill when a stage is done (30%, then 60%), and the client usually holds back part of each payment, often 10%, until the work is handed over. Tracking those held amounts in a spreadsheet is how money gets forgotten.
The case
A fit-out contractor signs a SAR 210,000 contract with a private school: interior works at SAR 150,000 and electrical works at SAR 60,000. The client holds 10% retention. The first stage, 30% of both, is done.
| SAR | |
|---|---|
| 30% of 210,000 | 63,000 |
| VAT 15% | 9,450 |
| Invoice total | 72,450 |
| Retention held (10% of 63,000) | −6,300 |
| Due now | 66,150 |
In alFatora, step by step
- Create a sales order with the two contract lines, press Add retention and enter 10%, then confirm the order.
- Press Create delivery note and choose By percentage done. Enter 30% for every line at once, or a different percentage per line. The document is titled completion certificate.

- Confirm the certificate, press Create invoice and issue it. The invoice keeps its full value and VAT; the retention only reduces what is due now, and it is shown on the invoice.
- Repeat at each stage. The order shows the progress and the total retention held so far.
- At handover, open the order, press Release retention and choose which invoices it covers. The held amount becomes due.

You can filter the delivery notes list to show completion certificates only.
What you gain
- Every progress invoice matches a completion certificate.
- Retention is tracked per order, so it is collected at handover, not forgotten.
- VAT is always on the full invoice value, as it should be.
Before you start
Switch on sales orders and delivery notes once, in Sales settings, the last entry of the Sell menu.
Frequently asked questions
Is retention taken off the invoice value before VAT?
No. The invoice keeps its full value and VAT; retention only reduces what is due now.
When is the held amount paid?
When you release it from the order, choosing which invoices the release covers.
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