Enable and Configure the Retainer Feature

To use retainers, you must enable retainers and set up a retainer account for each accounts receivable category your company uses.

While retainers are sometimes treated as accounts receivable, it is a good practice to set up retainer accounts as liability (2xx.xx) accounts, to conform with generally accepted accounting principles.

To enable and set up the Retainer feature:

1. In the Navigation pane, select Settings > Billing > Options.
2. On the Options form, set the Use Retainers option to Yes.
3. Click Save.
4. On the Navigation pane, select Settings > General Ledger > Chart of Accounts.
5. On the Accounts form, add a retainer account for each accounts receivable account in your chart of accounts.
   If you use only one accounts receivable account, add only one retainer account.
6. In the Invoice Mapping Accounts section of the Accounts Receivable settings form in Settings > Billing > Accounts Receivable, map the retainer accounts to accounts receivable accounts:
   1. In the Invoice Account field, enter the number of the new retainer account. If you use only one retainer account, enter it in this field and leave the other fields blank.
   2. In the AR Account field, enter the accounts receivable account.
   3. In the AR Column field, select the column in which the retainer offset is displayed on the Accounts Receivable Ledger report. Leave the other two columns blank.
7. Click Save.