When you send a retainer contract to a client, their account is billed immediately for the full amount. You will then need to create invoices as you go to detract the retainer amount until there are no longer funds available. Once the retainer balance reaches $0, you can refill the retainer (for any amount you and your client agree upon) or continue billing as you go with line-item invoicing.
Here's a quick video explaining that process:
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