Customer Deposit

Hello there, Ksimmons.

The deposit amount won't be allocated to the estimate since it's considered a non-posting type of transaction. Please know that when customers submit the deposit, QuickBooks automatically updates the status of each estimate to Accepted, and then converts it into an invoice. It also registers the customer's deposit as a partial payment for the new invoice.

This indicates that all prior, current, and future payments will applied to the invoice. Additionally, the estimate will be automatically closed since the customer has accepted it and it has been converted into an invoice.

Additionally, I'll include this article for recording the invoice payments of your customers: Record invoice payments in QuickBooks Online.

Should you have other concerns regarding the estimate, please post them here in the Community space.

Thanks for your reply. So what should I do now? I have the original estimate that is showing accepted and I also have an invoice for off that estimate. Should I be converting the estimate to an invoice and applying the deposit money to that? It seems logical however I don’t want that to prompt sending another invoice for the remaining balance as that is not due yet. Thanks again 

Thank you for getting back to us, @ksimmons.

Allow me to step in and share some information about accepted estimates and invoices in QuickBooks Online (QBO).

You can record the deposit you received as a bank deposit affecting Accounts Receivable (AR). This way, you can make it as a credit to apply to an invoice for the remaining balance to avoid overpayment.

For future reference, read through these articles to get more insights about managing your invoices in QBO:

• Due date and invoice date do not match when using due on receipt term.
• How to customize invoices in QuickBooks Online
   

Don't hesitate to leave a comment below if you need help managing sales transactions. I'm always here to help.