Apply a Client's Retainer Toward an Invoice

When you prepare a billing invoice for a client who has paid a retainer, you can use the retainer to offset part of the invoice total or the full amount.

After you accept an invoice that includes the application of a retainer amount, be sure to reopen the More Calculations tab on the project's Billing Terms form (Hubs > Projects > Billing Terms) and delete the retainer's offset rows in the Add-ons grid. If part of the retainer remains unapplied, and you plan to apply it to the project’s next invoice, you can retain the rows or adjust the amount in the Amount/Percent amount.

To apply a client’s retainer to an invoice:

1. In the Navigation pane, select Billing > Interactive Billing.
2. On the Interactive Billing form, open the project.
3. On the Actions bar, click Other Actions > Billing Terms.
4. On the Billing Terms form, click the More Calculations tab.
   Any remaining retainer amount for the project displays in the Remaining Retainer field in the Additional Fees and Multipliers section.
5. Below the Add-ons grid, click + New Add-on to add a blank transaction line for a retainer category that you use to apply retainer offsets.
6. In the Add-ons grid, complete the following actions for the new row:
   1. In the Seq field, enter the sequence number.
   2. In the Description field, enter descriptive information about the accounts receivable account entered in the Account field.
   3. Select the Retainer check box.
   4. In the Amount/Percent field, enter as a negative amount the retainer amount being applied to this accounts receivable category.
   5. In the Account field, select the accounts receivable account that was used on the cash receipt for this retainer.
   The entry is saved automatically when you move off the row.