How can we show retainer balances and retainer payment deductions on an invoice

Hi office10,

You'll want to create a liability account to track the retainer's total amount from your customer. Then, create a retainer item so you can track the amount on your invoice. Let me walk you through the steps.

To create a liability account:

1. Click the Gear icon, then select Chart of Accounts.
2. Select New.
3. From the Account Type drop-down menu, select Other Current Liabilities.
4. From the Detail Type drop-down menu, Trust Accounts - Liabilities.
5. Enter a name for the account.
6. Select an option from the When do you want to start tracking your finances from this account in QuickBooks? dropdown list.
7. Click Save and close.

To create a retainer item:

1. Click the Gear icon, then select Products and Services.
2. Select New.
3. From the Product/Service information pane, select Service.
4. Enter a name for the new product or service item.
5. From the Income account drop-down menu, select Trust Liability Account.
6. Click Save and close.

Here's an article that you can check out for detailed steps and information: How to Record A Retainer.

You can match your QuickBooks transactions against your bank, please check this article for future reference: Match and Categorize BankTtransactions in QuickBooks Online.

Post a reply to this thread if you need further assistance. I'll always be around to help.

@office10 

"How can we show retainer balances and retainer payment deductions on an invoice"

You can't show it on an Invoice if the Retainer balance is already in the Liability account. QBO is not that advanced software program.

The workaround option is to manually enter it on the "Message on Invoice" section of the Invoice.

Example: