The process for establishing and paying retainage against a contract can be found at Chapter XII, Section 6.O - Paying Retainage. Since one of the prerequisites for closing a contract in the Statewide Financial System (SFS) is that there is no retainage remaining on any purchase order associated to the contract (see Section 12.D - Closing Contracts of this Chapter), agencies are encouraged to establish business processes to ensure that retainages are processed appropriately and timely in SFS.

Guide to Financial Operations

REV. 03/19/2012