I followed the link about how to record a retainer, all good (liability account, service item, sales receipt) but I have 2 issues:
Our retainers are applicable to the last Invoice, sometimes the clients put us on hold for lets say 2 months deciding later to not continue services, then : if we apply the retainer as a negative amount on the bottom line of the last Invoice issued 2 months ago, it becomes Income the date of the invoice (in cash basis) for an already closed and reported period.
To go around above I can create a Credit Memo on the month the client cancelled and apply it to the "past" invoice then the Income goes to the right month, but happens that the retainer is larger than the Invoice, so now the client has a credit, then:
How do I record the reimbursement to the client ?
If for example the retainer is for $300 and the Invoice for $200, the customer shows a balance of -$100 (after applying the Credit Memo to the invoice), but when creating a check payable to the customer (against the "retainer" liability account to zeroed it out, which it does) the customer balance is still -$100 and the check is not even showing up on the transaction list, where is my error ?