Browse
 
Tools
Rss Categories

How to Add a Deposit, Credit or Retainer Fee

Overview

Some businesses require either a retainer fee or a deposit for a service that they provide. Others offer gift certificates or in-store credit. Whatever your business uses, this tutorial will show you how to add and redeem deposits, credits, or retainer fees.

How to Add a Non-Refundable Deposit or Retainer Fee

Option 1: Use the Same Invoice when the Client Orders (Best Method)

This option is ideal but some customers do not want to have an invoice with a balance due

  • If this option is used edit the original invoice and add their ordered items to the invoice.
  • Edit the deposit/retainer fee and uncheck the "Non-Refundable Deposit/Retainer" checkbox

Option 2: Use a New Invoice and Add Discount To New Invoice 

If this option is used you will need to add a tax free product to the original invoice and then create a new invoice and add the deposit/retainer fee as a global discount.

Note: This option assumes that taxes are paid on the deposit/retainer fee when the deposit/retainer fee is made.

Step 1: How to Add a Deposit, Credit or Retainer Fee to an invoice

  1. Add a product called "Credit", "Deposit", or "Retainer Fee" with a set price of $0.00 to the invoice
  2. Edit the $0.00 amount to reflect the amount of how much the deposit, credit, or retainer fee is
    1. You can edit the amount by clicking on the edit icon under the Price column
  3. Add a Non-refundable deposit to the invoice by following the instructions above

Step 2: How to Redeem or Add the Retainer Fee to their Final Order

  1. Create a new invoice and add the previously created "Credit","Deposit", or "Retainer Fee" product to the invoice with a price of $0.00. 
    1. Add any more products services or packages that are applicable to this invoice
  2. Add a global discount to the invoice by clicking on the Edit icon next to the word "Discount" in the lower right of the invoice equal to the previously entered amount
  3. Click on the Notes tab on the lower left corner of the the invoice
  4. Make a public note that says "Retainer Fee Applied to Balance"
  5. Save and close the invoice

Option 3: Transfer Payment From Original Invoice To New Invoice

This option transfers the balance due from one invoice to another by using gift card payment/refund entries.

Note: Using this option can cause problems with sales tax as it will refund the initial payment and sales tax and then apply a brand new payment to the new invoice cause a new sales tax entry

  1. Click here for a tutorial on how to transfer the balance from one invoice to another