Forum Message

Customer deducts a retainer

Hi
Please advise how we deal with VAT when a customer deducts a retainer from our Invoice. The retainer is held for 12 months, we then request payment.

Regards
Bob Ward


Posted by Bob Ward on Nov 1, 2010 9:27 AM GMT

Hello Bob,

You will need to reduce the balance of the invoice by the retainer amount. You can do this by adding an extra invoice line with a negative amount, or create a credit note and allocate it to the invoice as described here:
http://www.solaraccounts.co.uk/help/how-to-allocate-a-credit-note.php

Finally, record a second invoice for the retainer amount.

Regards,


Posted by Mark McLaren (Solar Accounts) on Nov 1, 2010 2:40 PM GMT