when invoicing a client i would like to invoice them for a 50% advance. how do i do this in Quickbooks online ? if i were to link the estimate created , should i create a subtotal and then a line item that is linked to an income account with a title that says " Project advance " ? if so which income account would this have to be linked to ?
An Estimate is a non-posting transaction so there is no point in putting a line item for the deposit, except to let the customer know that a deposit is required, but I would do that as a note, and not adjust the total amount. When they send the deposit, one way to record it, is to create a Receive Payment which puts a credit on the customer's account. You should only create the invoice later, when good or services are delivered, at which time the income is created (on the accrual basis), and also the previous credit is applied, if you have the setting to automatically apply credits.