Request a customer deposit on an estimate in QuickBooks Online

Learn how to request a deposit on an estimate in QuickBooks Online.

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.

Note: Limited availability. This feature may be more broadly available soon.

You can enter the deposit as a specific dollar amount or a percentage of the estimate total. When you convert an estimate to an invoice, QuickBooks applies the deposit as a partial payment and tracks 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.

1. Go to Sales, then select Estimates (Take me there).
2. Find the estimate for which you want to add a deposit request, then select View/Edit.
   Note: Check your state for additional regulations on deposits.
   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.
3. To email the estimate with a deposit request to your customer, select Review and send. Then, edit the email message if necessary.
4. Select Send estimate.

Know what your customers see when they pay the deposit

• Pay-enabled estimate: Receiving customers can view, approve, and pay the estimate through the counterpart portal.
• Non-pay-enabled estimate: Receiving customers can view the requested deposit amount. They can also approve the estimate. But, they can’t pay the deposit through the counterpart portal.

View the payment status

1. Go to Sales, then select Estimates (Take me there).
2. In the STATUS column, you’ll already see if your customer paid the requested deposit.
3. Select the More actions dropdown, then select View activity to see the complete estimate activity.

Record a manual deposit payment on an estimate

If you’ve received a deposit from your customer outside of QuickBooks (example: cash or check), you can manually record it on the estimate. Here’s how:

1. Go to Sales, then select Estimates (Take me there).
2. Find the estimate you want to record the deposit for.
3. In the Action column, select the More actions dropdown, then select Receive deposit.
4. Enter the payment date and the deposit amount.
5. (Optional) Enter the payment method and the reference no.
6. Select Save.

Convert a paid estimate to an invoice

After you receive the deposit and complete the work, you can convert it to an invoice with the new layout.

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

• When you collect a deposit on an estimate, QuickBooks records it in a liability account, not in accounts receivable. This means that QuickBooks treats 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. QuickBooks then applies the deposit as a partial payment and invoices your customer for the remaining balance.