Tracking Retainers, Deposits, and Credits
Factor allows you to track adjustment types — such as retainers, deposits, or credits — that affect your invoice totals. Adjustment types are configured once at the firm level, then applied to individual projects.
What Are Adjustment Types?
Adjustment types represent financial modifications applied to invoices. Common examples:
Retainers — advance payments from a client that reduce the amount due on future invoices
Deposits — funds held against future work, applied the same way as retainers
Credits — discounts, refunds, or rework at no charge
Other Adjustments — any other adjustment your firm wants to track
Your firm can name adjustment types however makes sense for your workflow — the examples above are common uses, not fixed categories.
Setting Up Adjustment Types
Adjustment types are configured under SETTINGS > Lists > Adjustment Type.
Click Add.
Name the adjustment type (e.g., "Retainer").
If your firm uses QuickBooks Online, link the adjustment type to a QBO Product/Service so amounts route to the correct account when invoiced.
Click Save.
Whether an adjustment increases or decreases the invoice total is chosen when you add it to an invoice — not as part of the type's setup.
How Adjustment Types Are Used
Once created, an adjustment type can be tracked as an ongoing balance on a project, or applied directly to a single invoice. See Billing Pre-Payments (Retainers and Deposits) for the full walkthrough.
Reporting on Adjustments
Factor's printable reports can show adjustment totals, helping you see discounts given or credits applied across projects.