Dealing with Retainers to operating account

Modified on Sun, 17 Dec 2023 at 06:49 PM


Note: This article applies to users with Classic Billing.

In many firms clients will need to pay a Retainer prior to the work starting. Actionstep does not currently have a formal mechanism for managing these. This will be addressed toward the end of2016, in the meantime this is the recommended approach.

  • Create a GL Account for "Retainers" (depending on your preferences or rules you may choose either an income or a balance sheet account for this)
  • Invoice the client from the action for a Retainer using the GL account
  • Raise a credit for the same value against the same account.
  • Receipt the retainer received against the invoice raised. Leaving a credit sitting in the Action for the client.
  • As invoices are raised, they can be paid by applying the applicable portion of the credit to the invoice.

This method allows for the display of the remaining balance on the invoices sent. If you are on a cash accounting basis, you will also always be able to see the full value of retainers which have not been applied yet.

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