I own a farm business where customers pay ahead for product they recieve over time. For example, Customer A pays me $300 on Jan 1. My responsibility is to deliver $100 of my product to the customer on Jan 1, Feb 1, and March 1. I want to know how to record both the payment from Customer A on Jan 1 and how to record the items I repay the customer with over time without double recording things. To further complicate things, the items used to repay the customer are spread over different classes. Thanks
Sorry, I should have posted that. I use the Desktop 2016 Quickbooks for Mac.
I think I have found a solution to my question, but it brings up other questions.
This is my possible solution:
Customer A writes me a check for $300 on Jan 1 for three $100 deliveries of product on Jan 1, Feb 1, and March 1. The deliveries will have a various selection of items in them, all equaling $100. In QB I record Customer A's check in "Recieve Payments" which gives Customer A an open Balance of $300. Then on Jan 1 I make an Invoice of the $100 worth of items that Customer A is receiving that month. When I go to "Recieve Payments" I can apply existing credits and Customer A should then only have $200 left as an open balance. Does that work?
My new question is that I'd like to record my customers that pre-pay so that I can see how many prepaid customers signed up with me in a year. Until I figured out how to record the items going out in the prepaid deliveries, I was recodring the prepaid customers as purchasing Items that were named for the amount of time they signed up for. For example, I had been recording Customer A's check as a purchase of an item called "3 month share." Is there a way for me to record that Customer A purchased a 3 Month Share and also record the individual items that go out in the monthly share distributions - without double recording?