set up retainers

I'll help you set up your retainers seamlessly in QuickBooks Online, @Brittanyxo1. 

Yes, since the invoice is paid, you can delete the invoice and recreate a new one. 

Alternatively, we can unlink the invoice payment and attach the retainer line item. Here's how you can do it: 

1. Go to the Sales tab in the left menu.
2. Select the invoice, then hit View payment. 
   
    
3. From there, uncheck the box for the payment. 
4. Tap Save and Close.
   
   

Then, you can select the invoice again, click Edit Invoice, attach the retainer line item, and click Save and Close. From there, Receive invoice payment.

Additionally, you'll want to pull up some reports that can give you a snapshot of your business and personalize them to modify the information according to your needs. Feel free to visit these helpful resources:

• Customize reports
• Run reports in QuickBooks Online

Let me know how else I can help you manage your invoices in QBO. I'm more than happy to lend a helping hand. Keep safe always. 

Hi Carneil_C,

I didn't want to delete the invoice so I unlinked the payment and attached the retainer line item! Thank you for that! Now, the invoice is open. I did not follow the steps to receive payment yet because I want to show my customer where we are at. If I accept payment it will show the invoice as paid already. Or do I have to accept payment as the first step? So here is exactly what is being done so I don't confuse anyone: They paid us to paint 240 parts. They paid for all 240 parts upfront. We painted 8 last week and 30 this week, I would like to show the credits on their invoice and I am not sure how to do it properly if I accept payment. I am Sorry for the confusion!

I appreciate you following the steps instructions by my colleague, Brittanyxo1. 

Jumping in to share another workaround so invoices are recorded correctly in QuickBooks. To prevent confusion and messing up the record in your book, it would be better if you create a separate invoice for the retainer item. Then, apply for the credit as the payment.

Here's how to apply the credit to the new invoice.

1. Click + New, then Receive payment.
2. From the Customer drop-down, select the customer.
3. From the Outstanding Transactions section, mark the open invoice if you want to apply the credit memo.
   
4. In the Credits section, mark the credit memos you want to apply.
5. For the open invoice in the Payment column, enter how much of the credit you want to apply.
6. Leave the Payment method, Reference no, Deposit to, and Amount received fields blank.
7. Fill out the rest of the form, including the Payment date.
8. Make sure the total is correct after applying the credit memo.
9. When you're done, hit Save and close.

If you want QuickBooks to apply for the credit automatically, I suggest turning on the Automatically apply credits feature. Please browse this article and follow Step 1: Learn how and when to give a credit memo or delayed credit to customers.

Creating a separate invoice is also good especially when the payment is downloaded from the bank. Your bank statement is always the bases when recording the transaction in QuickBooks. This is for reconciliation purposes and easy to find a match on the Banking page.

Feel at ease to comment back below if you need more help with managing your invoices. I'll make sure this is taken care of right away so there would be no issues in the future. I hope you're having a productive week.