How do I enter a retainer for a supplier?

I’m glad to see you in the Community, terry-clark-impe.

Let me help make sure you can enter your supplier’s retainer in QuickBooks Online (QBO) with a breeze. We’ll have to set up an account and use it to record the transaction.

To add the retainer account:

1. Go to the Accounting menu on the left panel to choose the Chart of Accounts tab.
2. This action will take you to the Accounting page.
3. From there, click the New button in the upper right to open the Account window.
4. Click the Account Type ▼ drop-down menu and pick Other Current Liabilities.
5. Then select Trust Accounts - Liabilities from the Detail Type ▼ drop-down.
6. Enter the complete details of the account in the field boxes.
7. Click the Save and close button.

As always, I recommend consulting an accountant for the specific category to use to associate the retainer. This is to keep your records in order.

After setting up everything, let’s create the retainer item. Here’s how:

1. Tap the Sales menu on the left panel to choose Product and Services.
2. Then click the New button in the upper left to open the Product/Service information window.
3. Select the Service icon to view more details.
4. Enter a name for the item in the Name field like Retainer.
5. Navigate to the Income account section and choose the Trust Liability Account.
6. Press the Save and close button.

Once done, you can now use the newly added item to the bill, check or expense transactions. For more details, you can browse this article: Record a retainer or deposit. It contains detailed instructions on when to use a sales receipt or invoice to track the item.

Additionally, the following guide will help you efficiently manage expenses, and other vendor-related activities: Self-help articles.

Drop me a response below if there you still need help with entering a retainer in QBO. I’m here anytime ready to assist further.