How Do I Use Retainers for Reimbursable Expenses?

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Do you have a contract that provides a retainer for all reimbursable expenses? Here is how to handle this situation:

  1. Select Preferences from the master drop-down list.

  2. Open the Billing folder and click Billing Codes.

  3. Select Expense from the drop-down list

  4. Create a reimbursable retainer account. In the last row of the accounts list, enter the account's name and details and click Save.

  5. The client must be notified that a retainer must be sent, so you must create an invoice specifying what to pay and where to send the money.

  6. Create an expense entry using Reimbursable Retainer as the expense type (make sure the date is within the billing period). For example, you could create a single expense slip for the amount of $10,000.

  7. Create a draft invoice, but do not finalize it. Send it to the client. This is a payment notification. It is not to be recorded on the client's account.

  8. Delete the expense entry and draft invoice. This expense entry and invoice were only created to notify the client to send payment. You cannot keep the invoice in EngineerOffice because you will put the money in the retainer account. When the check comes in, apply it to the Retainer account.

  9. Create time and expense entries during the billing period. Before finalizing the next invoice, preview the draft first and see what the value of the reimbursable expenses is.

  10. Create a transaction that takes funds from the retainer account to match the amount of the reimbursable expenses. You might have a negative project balance; that will change as soon as you finalize the invoice.

  11. Create the second invoice. To show the retainer balance, go to the  Projects > Billing > Options screen, click the Invoice Extras tab and select the Show Retainer check box.