Classifying deposits in QB Online

The deposits are sales, unless you also take deposits on future work.

COGS is the cost of what was sold, the CC company does not report that

Thanks, but what about future deposits where an invoice is made for the customer. How will i categorize that without duplicating the merchandise sale for my records? Which account will that post to or is that automatic?

Hi @qdesktop,

Thank you for your prompt reply. I'll walk you through how to record future deposits from your customers in QuickBooks Online (QBO).

For these future deposits or retainers, you can record them as a liability. To do that, you'll have to create a liability account for it first.

Here's how:

1. Highlight the Accounting tab.
2. Select Chart of Accounts.
3. Click New.
4. Set the Account Type to Other Current Liabilities, then the Detail Type to Client Trust Accounts - Liabilities.
5. Enter a name for the account. 
6. Choose an option from the When do you want to start tracking your finances from the is account in QuickBooks? drop-down list. 
7. Press Save and close.

To continue, see this article: Record a retainer or deposit. Scroll down to the Step 2. Create a retainer item section.

As for your online bank transactions, see this article: Categorize and match online bank transactions in QuickBooks Online. It's a step by step guide on how you can categorize transactions from your synced online bank accounts.

Do you have other concerns about your QBO company? Share them in the comments below, and I got you covered.