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ledmonds
Level 1

Recording a prepaid service

What are the steps in QB to record a check received from a customer to prepay for services that will be invoiced over several months. 

We will receive a check for the entire amount, deposit that to our checking account. 

Then as we provide services, we will prepare an invoice showing the detailed charges. Then I will show the invoice "paid" using part of the  prepaid  check, and show the customer their balance of the prepaid account. 

I need to make sure we show the initial check received as a liability until we actually provide the service. 

Thank you so much for your help.

1 Comment
MarshallA
Intuit

Recording a prepaid service

Hello,

 

Here is the article on how to record a retainer or deposit as a liability until it's used to pay for services.

 

https://quickbooks.intuit.com/community/Income-and-expenses/How-to-record-a-retainer-or-deposit/m-p/...

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