Retainer Balance and Credit Invoices: What They Are and How They Work in PSOhub

Published: 1 June 2026

Audience

Admin
Controller
Project Manager

Objective

Understand what balance invoices and credit notes are in the context of Retainer billing in PSOhub, when PSOhub generates them automatically, and how they are used to reconcile the difference between the fixed retainer amount and actual work delivered.

Introduction

A Retainer contract line bills a fixed recurring amount to a client on a scheduled basis — regardless of how many hours or expenses were actually incurred during the period. Over time, the actual work delivered may be more or less than the retainer amount.

PSOhub handles this reconciliation automatically by generating either a balance invoice or a credit note depending on whether actual costs exceeded or fell short of the retainer amount billed.

What is a Balance Invoice?

A balance invoice is generated when the actual value of work delivered on a project exceeds the retainer amount that has already been invoiced.

For example, if a client is billed a monthly retainer of €5,000 but the team logged €6,500 worth of billable hours during that period, PSOhub generates a balance invoice for the €1,500 difference.

The balance invoice covers the gap between what was billed under the retainer and what was actually delivered, ensuring the project remains financially accurate.

What Is a Credit Note?

A credit note is generated when the actual value of work delivered is less than the retainer amount that has already been billed to the client.

For example, if a client is billed a monthly retainer of €5,000 but the team only delivered €3,800 worth of billable hours during that period, PSOhub generates a credit note for the €1,200 difference.

The credit note reduces the amount owed by the client or can be applied against a future invoice, keeping the billing aligned with actual delivery.

When Does PSOhub Generate a Balance Invoice or Credit Note?

PSOhub generates a balance invoice or credit note at the point of reconciliation — typically when you review and close out the retainer period. The system compares the fixed retainer amount invoiced against the actual time and expenses recorded on the project for that period and calculates the difference automatically.

📌 Note: The exact trigger for reconciliation — whether automatic or manual — and the reconciliation period should be confirmed in your PSOhub setup. Speak to your PSOhub administrator or consult the retainer invoicing setup article for your configuration.

Where to Find Balance Invoices and Credit Notes

Balance invoices and credit notes generated from a Retainer contract line appear in the Invoices tab of the project, alongside all other invoices generated for that project. They can also be viewed in the Invoices overview across all projects.

Key Things to Know

Balance invoices and credit notes are linked to the specific Retainer contract line that triggered them.
They reflect the reconciliation between the fixed retainer amount billed and the actual value of work delivered.
Credit notes can be applied against future invoices or returned to the client depending on your billing agreement.
Both document types flow through to your connected financial integration if one is configured.

Next Steps

✅ Set up automatic retainer invoicing
Configure a Retainer contract line to automatically generate invoices on a recurring schedule. Automatic invoicing: How to set up retainer invoicing in PSOhub

✅ Review invoices for a project
View all invoices, balance invoices, and credit notes generated for a project in one place.
Invoicing in PSOhub

✅ Connect a financial integration
Ensure balance invoices and credit notes flow automatically to your accounting software.
Connect a financial integration in PSOhub