# Apply a retainer to an invoice

> Use retainer funds you hold to pay part or all of a draft invoice, so your client is only charged what is left.

Source: https://docs.moodiri.com/financials/apply-a-retainer-to-an-invoice

## Why use it

A retainer sitting unapplied is money your client has paid but cannot see working.
Applying it to an invoice uses those funds for real work, reduces what the client
owes, and keeps your books clear about what is still held.

## When to use it

- **The first invoices of a project,** drawing down the deposit.
- **Closing out a project,** using the last of the retainer on the final invoice.

## Before you start

- You need to be the owner or an admin.
- The invoice must be a draft with an outstanding balance.
- The project needs an active retainer with money left.

## Steps

![Draft invoice LS-016-INV004 for Alex Rivera totalling $16,520.00, with Apply retainer under Actions.](https://docs.moodiri.com/shots/financials--apply-a-retainer-to-an-invoice--page-1600.webp)
Same screen with numbered callouts: https://docs.moodiri.com/shots/financials--apply-a-retainer-to-an-invoice--page-annotated.webp
Callout 1: Apply retainer
1. Open a draft invoice on a project with an active retainer, for example Lombard Street Loft.
2. Choose **Apply retainer**. It shows only on drafts whose project has a retainer with a balance.
3. Enter the **Amount to apply**, here $5,000 of the $10,000.00 available.
4. Choose **Apply** with the amount, here **Apply $5,000.00**. Your client is only charged what is left.

## What happens next

- The invoice shows the retainer applied, and your client is charged only the remaining balance when you send it.
- An invoice fully covered by the retainer is marked paid.
- The retainer's **Applied** and **Remaining** amounts update, and its **Ledger** records the application. When the balance reaches zero, the retainer shows **Closed**.

## Limits

- Only on draft invoices with an active project retainer carrying a balance.
- You cannot apply more than the retainer's remaining balance or the invoice's outstanding balance.
- **Apply retainer** is unavailable when the invoice has no outstanding balance.

## Questions

### What if the retainer covers the whole invoice?

The invoice is marked paid automatically. The window tells you before you apply.

### Can I apply a retainer to an invoice I already sent?

No. **Apply retainer** shows only on draft invoices.