Retainers

A client pre-funds work; the money is a liability until invoices draw it down, with a rollover policy for what is left at period end.

Sales → Retainers.

Why it is a liability. Money received before the work is done is owed back until the work is done, so a retainer receipt posts DR Bank · CR Customer Deposits — never revenue. Revenue is recognised only when an invoice draws the balance down.

Setting one up. Customer, a name, the standard amount per period, the period, and the rollover policy: roll over (unused balance carries forward), expire (unused balance is recognised as income at period end), or cap (the balance is trimmed to the standard amount). A replenish threshold raises an alert when the balance falls to that level.

Receiving funds records the amount, date, deposit account and reference against the retainer. Applying it to an invoice moves the amount from Customer Deposits to the invoice's receivable, so the customer's statement shows the invoice paid from the retainer and the remaining balance.

Period roll applies the policy: an expired balance posts the income entry with a memo naming the retainer; a capped one records the trim. Every movement is on the retainer's ledger with its journal entry.