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Retainers on invoice.
How do I account for a retainer on an invoice which has been paid? We have clients who pay us £X per month by standing order. IN addition, we do extra work for them during the month. WE invoice at month end and it will look something like:
Retainer: £100
Extra work: £500
The £100 will have been paid so they only owe us £500. How should I show this on the invoice.
Retainer: £100
Extra work: £500
The £100 will have been paid so they only owe us £500. How should I show this on the invoice.
I’m unsure
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Inappropriate?Rich,
You can explain the £100 received for that month against the invoice. The invoice will then say:
Total: £600
Paid: £100
Due: £500
..and send that to them.
(Soon we're going to add more detail to that Paid line, so it says Payment received on 23 Apr 08: £100)
I’m hoping that answers your question
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this answers the question
4 Comments Add a comment
This answers the question
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What if I don't have a standing payment, so I need to bill them for another retainer amount, because I've used up the retainer they paid? -
@writer4hire - yes I think so - I suppose you just need to keep track of whether the retainer has been paid on some invoice or other in any given month...
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how does it look on the invoice though?
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Rich's question was about applying that retainer payment to an invoice, but it's counted as part-payment toward work done.
WIth your client, they've agreed to pay you a retainer on top of any work done each month, right? And they're expecting it to be included in one of your month's invoices?
So if they've paid it already that month, you just invoice for the actual work done. No extra item required.
If they've not paid it, you add it as an extra item to the first invoice you create that month. Call it 1xService with description 'Retainer May 08' and value of £100 or whatever.
Have I got the wrong end of the stick?
EMPLOYEE
