Keeping a Clients deposit from deducting off an invoice

Hello aliam,

Welcome to the Community - thank you for your question!

Just to clarify - does the deposit automatically deduct from the total line when creating and invoice, or when receiving payment for the invoice?

Thank you,

Talia

Hi Talia - thanks for repling!

It is when creating an invoice

So the line total is correct, but then the amount payable at the bottom is the line total less the deposit.  - Thanks Again -  Ali

Hi Aliam,

It might be worth deleting and leaving the Deposit section blank, for the purposes you are describing.

Is the deposit amount equaling the total amount showing as a positive balance in your customers account? or is it a partial? I'm trying to replicate it and alas, so far i can't get my deposit box to autopopulate at all.

Thanks,

Thanks Mike - this worked great I used #1

Kudos!

Hi Talia

Thanks for your help, I used another persons answer!

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@Anonymous wrote:

There are 2 problems here:

1 > your method of receiving deposits is creating 'open credits' in the customer account

2 > you have QB set to 'automatically apply customer credits'

solving either of these will fix the problem - I suggest you fix #1.

 

You should receive the customer deposit by creating a 'sales receipt' and also creating a 'deposit' item to code to. The 'deposit item' should be a 'service' type item that links to a current liability account called 'customer deposits'.  Then there will never be an 'open credit' in the AR system. To refund the deposit just issue a check and code it to the customer deposits liability account.  

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The advantage of using #1 is that you are utilizing the automatic sub-ledger capability of the software, which makes workflow much easier in a high volume business. 

If you do not use #1 you do not see the activity of each customer on their ledger page.  

A credit in AR shows as a negative asset on a balance sheet, which is not technically correct, so if you publish a balance sheet while open credits are in place, create a Journal Entry on b/sheet date, to move the total open credits amount from AR to a current liability, and reverse it the next day.