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usercollettefranklin
Level 1

What type of account do you set up to record security deposits charged to customers that will be refunded at a later date?

 
1 Comment 1
Trish_T
QuickBooks Team

What type of account do you set up to record security deposits charged to customers that will be refunded at a later date?

Hello usercollettefranklin,

 

It's a pleasure to see you in Community.  Welcome!  QuickBooks Online enables you to create customer deposits, that can be applied to your invoices seamlessly.  I would be glad to assist! 

 

When you request a deposit from your customers, prior to providing any products/services, it's treated as a liability.  When you invoice the customer and receive their payment, the liability becomes income.

 

To get started you'll need to create a liability account and the retainer item. Once this has been established, you'll be able to proceed with turning them into credits on invoices.  Follow this link to learn how.

 

Should you require additional assistance, please don't hesitate to contact us. It would provide a great opportunity for us to work with you on a personal level, and assist you with accomplishing your QuickBooks goals as soon as possible!

 

Feel free to reach out again, if you have any other questions. We would be happy to help!

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