help with prepaid retainers please

[robin@yoursales]

Just purchased Peachtree Complete Accounting. My business is set up on a prepaid retainer basis – how do I set this up? My goals are to have my customers listed – receive prepayment amounts and then deduct (on a daily basis based on hours worked) the retainer. For example, a client purchases 20 hours a month at $40 per hour – prepaid retainers are for 3 months which totals $2400. So each day I have to record hours worked and results – making sure the business doesn’t exceed the 20 hours per month and then, 30 days before the retainer is completed, they are invoiced for their next 3 month retainer. It wasn’t so complicated when I did it in excel but now as our client base grows, we need a more sophisticated vehicle.



Can you help?



Thank you,



Robin Bohbot

LEADS - our business is increasing your business

6034 Bentwood Court

Dallas, Texas 75252

972-250-3570

robin@yoursalesleads.com

www.yoursalesleads.com

[bobo]

If I understand your application, when you receive a payment, go to Receipts, choose that customer account, click 'Prepayment' on the receipts screen and enter the amount.

This will set up a credit balance in a/r. When you perform a service, you enter invoices for the customer. You can see customer credit balances remaining if you run an aging.

[devett]

I used the prepayments at first, however, I found it messed up other areas. What I did was create a gl account for "prepayments", then I set up items in inventory. At the begining of the month, I create an invoice and the first line item is item "prepaid" (which is bound to the gl code) then enter the amount as a negative amount.

As the month goes and work is performed, I use the item "prepaid labor" (again, bound to the gl code) and enter the amount in a positive.

If at the end of the month, using item "unsused prepaid" (bound to the gl code) I would make an entry with the remainer to have a zero dollar invoice.

Then I send my invoice to the client showing how much they have left, zero bill or how much they need to pay for overages.

If they have money left over, I create an invoice for the new month with an entry of "remianing prepaid" (bound to the gl code) and I input the amount the have left as a negative amount.

It works real well for us and it makes tracking easy. It also allows for great reporting if you use time tracking within peachtree.

Hope this helps, or at least gives you another option.

[M GO BLUE]

I'm curious about the version you are using. Is it 2005? With the credit limit feature, it would seem to work much better than with previous versions.

[robin@yoursales]

yes, we have the 2005 version. any thoughts?

[M GO BLUE]

Actually I thought devett's description sounds good --- especially if you have 2005.