Create Retainer Service Items for your customers
Hourly retainer service items generate a block of hours for your customer to use over the course of a month, quarter, or an entire year. Customers pay for the entire block of hours at the start of the billing period, and hours are deducted from the retainer as you open tickets and track time. Send an invoice each month for a new block of hours, and charge an separate rate for overage if your customer exceeds their allotted hours.
- Navigate to and select a customer from the list.
- Select Service items > Add a New Service Item > Hour Retainer.
- Select a Retainer Period - this determines how often hours will accrue for billing and reporting purposes, and also when a new block of hours gets created.
- Select a Period Grouping option - this allows you to group together billing periods to share hours.
- For example, a 10 hour monthly retainer creates a block of 10 hours for your customer every month.
- Select Quarterly as the period grouping option to share the hours over the entire quarter (30 hours over 3 months). The customer can use up to 30 hours anytime during the quarter without being charged an overage rate.
- Your customer still receives an invoice each month for 10 hours, and overage is incurred if they exceed 30 hours before the end of the quarter.
- Specify a Retainer Amount and Retainer Hours.
- Specify an Overage Rate - this is the hourly rate your customer is billed if they exceed their retainer hours.
- Click Save Service Item.
This automatically calculates the Base Rate of the retainer. For example: $1000 Retainer Amount and 10 Retainer Hours generates a $100 Base Rate.
Create a money retainer service item to generate a block of money you can deduct from as you open tickets over the course of a billing period. Choose to bill your customer up front, before beginning work, or after tickets have been completed. A money retainer is a great way to keep your customers on a budget. After the money retainer is used up, you can generate another block of money and send your customer a bill before doing anymore work. Continue opening tickets and tracking time after your customer pays for another retainer.
- Click and select a customer in the list.
- Select Service items > Add a New Service Item > Money Retainer.
- Select a Retainer period.
- Select a Period Grouping option to share the money across billing periods.
- This behaves similar to the Hourly Retainer. Select Quarterly to share the money over a three month period.
- For example, a $1,500 money retainer with a monthly retainer period will generate a block of $1,500 each month.
- Your customer can use up to $4,500 ($1,500 x 3 months) of the retainer prior to the end of the quarter before overage is applied.
- Overage is automatically calculated based on the hourly rates you select when tracking time in tickets. It appears as a separate line item on your customer's invoice if they exceed $4,500 before the end of the quarter.
With no period grouping set, overage is automatically applied if your customer exceeds their retainer amount during the specified retainer period.
- Select a Default Rate, and choose additional hourly rates if needed. These will all be available when adding time entries to tickets.
- Select Save Service Item.
If you bill your customer prior to starting work, select Customers > Service items and click the money retainer service item in the list to expand and keep track of how much money your customer has left on their contract through out the month.