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Tracking work on retainer
In Accounting Plus, you can track work on retainer in two ways. The first is to create a customer credit for the retainer amount and then apply the outstanding payment to invoices you record for the customers who retain you. The other is to create an order on which you can enter billing information when you’re ready to record it as an invoice. Either method will work well, but they both affect your accounts in a different way. You may want to ask your accountant which method is best for you.
Using this method, you’ll create a customer credit for the customer. When you’re ready to bill the customer for sales activity, you’ll create an invoice and then apply the customer credit to the invoice using the Settle Returns & Credits window.
Use this method of tracking work on retainer if you plan to perform many activities for the customer over an extended period of time.
Please note that when you record a blank invoice to create a customer credit, your default checking account for customer receipts is debited and your accounts receivable account (usually an asset account) is credited.
Using this method, you’ll create an order for the customer. When you’re ready to bill the customer, you’ll convert the order into an invoice.
Use this method of tracking work on retainer if you plan to record the entire retainer amount all at once.
Please note that when you create an order to record the retainer amount, your default checking account for customer receipts is debited and your linked account for customer deposits (usually a liability account) is credited.
Click below for the step-by-step procedures:
Tracking work on retainer