Hello
I have a similar question. Could you please explain how to enter a customer retainer when using the accrual basis? How is this recorded in QBO? The examples I read were for QuickBooks desktop and cash basis, but they did not cover this scenario. 

Example:
The company takes a retainer for installation work to be performed in the future.
The customer pays 50% now, and the rest when the work is done (6-9 months).
These are the steps that I believe should be followed:
Step 1. Create a product/service account (Installation Service).
      Use a deferred revenue account.
Step 2. Create an invoice for the Installation Service.
Step 3. Apply the payment (retainer) to the invoice.
Step 5. When the work is completed, apply the last payment to the invoice to close it out.
Is this the correct way to do this? Do I need to enter a year-end adjustment, if the last payment will be made in 2022? Thank you.