We'll ensure you can seamlessly track your vendor bill and customer deposit in QuickBooks Desktop (QBDT), Toonces. We'll guide you through the process below.
If the item costs 12,000 and one-third (1/3) is due upfront, your vendor bill should show the amount of 4,000. Then, when collecting a customer deposit for half of the item's sales price, create a pre-payment or retainer transaction to avoid negative inventory and ensure proper payment linkage upon item recording.
To set up an upfront customer deposit, start by adding a liability account for them. This is because upfront deposits and retainers are liabilities, not income, even though you deposit the money into your bank account. Here's how:
- From Transactions, select Chart of accounts.
- In the Chart of Accounts window, right-click and select New from the pop-up menu.
- Select Other Current Liability as the account Type.
- Enter a name for the account (for example, Upfront Deposit) in the Name field. Note: You should set up the account with a zero opening balance unless you are tracking existing upfront deposits or retainers.
- Select Ok.
After that, you need to create an item to use when recording upfront deposits or retainers. For the step-by-step guide in completing this procedure, please see this article: Manage upfront deposits or retainers.
Also, we've included these resources to help you monitor your sales, expenses, and accounts payable using reports:
Should you have other concerns or questions about managing vendor and customer transactions, don't hesitate to visit the Community again. We'll get back to help you the best that we can. Have a good one, Toonces.
