Request a customer deposit on an estimate

You can request a deposit from a customer on an estimate before you begin work. QuickBooks Online and Intuit Enterprise Suite lets you request a deposit as a specific dollar amount or as a percentage of the total estimate. When you later convert the estimate to an invoice, the paid deposit is automatically applied as a partial payment.

Why request a deposit on an estimate?

Requesting a deposit before starting a job can be helpful for service professionals. A deposit shows a client's commitment, provides financial security if the project doesn't proceed, and contributes to your cash flow during the early stages of a project.

Request a deposit on an estimate

To add a deposit request to an existing estimate, follow these steps. Once you send the estimate, your customer can view and pay the deposit online if you have a QuickBooks Payments merchant account.

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.
2. Next to Deposit request, use the switch to choose one of the following options:
   • To request a specific dollar amount, select $ and enter the amount.
   • To request a percentage of the estimate total, select % and enter the percentage.
     
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 any additional regulations on customer 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 deposit payment status

You can see if your customer has paid the deposit you asked for. You can also see the entire history of the estimate.

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.
3. Select View activity to see the complete estimate activity.

Convert a paid estimate to an invoice

After the deposit is paid and the work is complete, you can convert the estimate into an invoice. The deposit will be applied to the invoice, and you can bill your customer for the remaining balance.

Manage settings for deposits on estimates

You can choose how deposits on estimates are handled, such as setting them to automatically convert to an invoice when a deposit is paid. Any changes to this setting will apply to all future deposits.

1. Go to Settings , then select Account and settings.
2. Select Sales.
3. In the Deposits on estimates section, 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.
5. Select Done.

How deposits on estimates are recorded

When you collect a deposit on an estimate, the funds are recorded in a liability account, not in accounts receivable. QuickBooks and Intuit Enterprise Suite treat the funds as a liability until you complete the work and convert the estimate to an invoice.