Request a customer deposit on an estimate

Learn how to request a deposit on an estimate in QuickBooks Online or Intuit Enterprise Suite.

Many service professionals request a deposit before starting a job. A deposit helps indicate the client’s commitment before you start work or invest in materials. It also provides financial security if your client decides not to move forward after you've spent time and resources. Collecting a deposit also contributes to your cash flow during the early stages of a project.

You can enter the requested deposit as a specific dollar amount or a percentage of the estimated total. When you convert an estimate to an invoice, we’ll apply the paid deposit amount as a partial payment and track any remaining balance.

Now that you understand which version of the estimate and invoice you have, here’s how to request a deposit on an estimate.

Request a customer deposit on an estimate

If you need a deposit from your customer, you can request a deposit on their estimate. Once you send, your customer can view and pay the deposit online (QuickBooks Payments merchant account required).

Note: If you’re using the old layout, select update layout to make the feature available.

Follow this link to complete the steps in product

1. Find the estimate for which you want to add a deposit request, then select View/Edit.
   1. To enter a specific dollar amount, select $. Then, enter the amount.
   2. To enter a percentage of the estimate total, select %. Then, enter the percentage.
2. To send the estimate with a deposit request to your customer, there are a couple options:
   • Select Convert to invoice to generate an invoice that you can manually share with your customer. The invoice can use the remaining total of all lines, a percentage, or manual entry. Select Create invoice to view a template of the invoice.
   • Select the arrow dropdown next to Convert to invoice, then select Review and send, or Share link.
3. After you choose a deposit request option, select  Review and send. Edit the email message if necessary.
4. Select Send estimate.

Note: Check your state for additional regulations on deposits.

Know what your customers see when they pay the deposit

• Pay-enabled estimate: The customer receiving the deposit request can view, approve, and pay the estimate through the counterpart portal.
• Non-pay-enabled estimate: The customer receiving the deposit request can view the deposit amount. They can also approve the estimate, but they can’t pay the deposit through the counterpart portal.

View the payment status

Follow this link to complete the steps in product

1. In the STATUS column, you’ll already see if your customer paid the requested deposit.
2. Find the row that’s dedicated to your customer and use the arrow dropdown. Select View activity to see the complete estimate activity.

Convert a paid estimate to an invoice

After you receive the deposit and complete the work, choose between manually or automatically converting the deposit to an invoice.

Automatically convert deposits into an invoice
When you receive a deposit on an estimate, it'll automatically be converted into an invoice and recognized as income.

Record deposits in a liability account
The funds you collect as a deposit will be recorded as a liability until you’re ready to recognize the deposit as income and convert the estimate into an invoice for the requested goods or services.

If you’ve already been using deposits on estimates, you shouldn't experience any change to your current functionality and workflow.

How to choose an option for how deposits on estimates are handled
You can choose how deposits on estimates are handled by taking the following steps.

1. Select the Gear icon to go to Account and settings.
2. Select Sales.
3. Scroll to the Deposits on estimates section and select the Pencil icon to edit your settings.
4. Use the toggle to set whether to auto-convert estimates to an invoice when a deposit is paid.

Note: You can use these steps if you notice a change in the linking of estimates and invoices. If you make an update to this setting, the change will apply to all future deposits received on estimates.

Understand the difference between deposit payments on an estimate and payments on an invoice

• When you collect a deposit on an estimate, we’ll record it in a liability account, not in accounts receivable. This means that QuickBooks and Intuit Enterprise Suite treat the funds as a liability until you complete the work and invoice your customer for the goods or services.
• Once you complete the work, convert the estimate to an invoice. We’ll apply the deposit as a partial payment and invoice your customer for the remaining balance.