# 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.

Section: Sales and receivables · Canonical: https://intubu.intuitivecapital-dai.com/docs/retainers

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.