Welcome to the QuickBooks Community, Arne.
You can access your associated prepaid deposit account in the Chart of accounts. However, prepaid deposits don't appear directly in sales receipts or invoices. Instead, you'll need to create an invoice to record the prepaid deposit and account for it as income.
Once you've set up a liability account and retainer item for the prepaid deposits, you can record them through sales receipts or invoices. Then, you can follow the steps below on how to record the prepaid deposit using an invoice to receive it like a payment:
- Create an invoice for your customer, listing the goods or services provided.
- In the last line, select the Retainer or Deposit item in the Product/Service field.
- Enter the retainer amount as a negative value (no greater than the invoice total). The invoice can total zero, but cannot be negative.
- Once done, Save and close.
This reduces the balance in your prepaid liability account and applies the credit to your customer's invoice, converting it into income.
For more details, check out this article: Record a retainer or deposit in QuickBooks Online.
Feel free to leave a comment below if you have any questions.
