I am trying to determine how to account for a retainer payment, and then later the payment of an invoice from that retainer.
What I have done so far is:
- Enable Special Accounts
- Create a Trust Funds Receivable Control Account
- Create Legal Retainer within the control account
- Create a payment under “Receipts and Payments” to the retainer
Now I am stuck, and I am not sure if the above is the recommended method for dealing with retainers. I cannot determine how to apply a payment from the retainer to the legal fees invoice.
All I can find as examples on these forums are for the inverse, a received retainer for a law firm for example.