My client has paid a retainer for legal fees, I’m wondering how to post it.
Hi Chantal A ,
It's great to hear from you. A Retainer is similar to a customer deposit since it's a prepayment for legal services and is considered a liability until the services are rendered. Here’s how you can handle it in Sage 50:
By doing so, the liability (the customer deposit or retainer) will be converted into income as the services are billed. Remember, this is in accordance with GAAP as the retainer is a liability until the service is fulfilled.
For more details and to ensure you’re following the process correctly, please check out the Sage Knowledgebase article titled "How to apply a customer deposit to invoices" here.
If this helps, please mark it as verified :)
Warm Regards,
Erzsi
Hi Chantal A ,
It's great to hear from you. A Retainer is similar to a customer deposit since it's a prepayment for legal services and is considered a liability until the services are rendered. Here’s how you can handle it in Sage 50:
By doing so, the liability (the customer deposit or retainer) will be converted into income as the services are billed. Remember, this is in accordance with GAAP as the retainer is a liability until the service is fulfilled.
For more details and to ensure you’re following the process correctly, please check out the Sage Knowledgebase article titled "How to apply a customer deposit to invoices" here.
If this helps, please mark it as verified :)
Warm Regards,
Erzsi
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