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Ed-IRM
Level 1

Customer deposits

We have never had many customer deposits, so we have just created credit amount in the customer's A/R.

 

However, our business has changed, and we are handling a lot more customer deposits.   We are moving all new deposits to a new liability account.    My question is whether there is a simple process to move an existing deposit from a customer credit in A/R to the new Liability account???

Solved
Best answer December 30, 2020

Best Answers
jamespaul
Moderator

Customer deposits

Hello, Ed-IRM.

 

It's good to hear that your business is getting bigger. I have a way to help you move the existing A/R deposit or balances to the new liability account. 

 

You'll want to use a journal entry to move the deposit or balances from the existing A/R account to the new liability account. To create a journal entry:

 

  1. Click the Company menu, then select Make General Journal Entries
  2. Under ACCOUNT, select the existing A/R account and the new liability account.
  3. Enter the debit and credit amounts.
  4. Add a journal entry number.
  5. Once done, click Save & Close

 

JEQBDT.PNG

 

Note: If it prompts you to enter a name with the A/R account, select a customer profile under NAME. 

 

This article can also guide you in handing journal entries: Create a journal entry in QuickBooks Desktop for Windows or Mac.

 

While you can easily set accounts for debit and credits, I still recommend consulting an accountant. They'll ensure your books are correct and accurate as you transfer the balances. 

 

After moving the deposits, I'm sure you'll have other transactions to take care of. Our articles can help you record income and other sales transactions. Just browse them here to get started. 

 

Leave a comment below if you have other questions regarding the processes in QuickBooks Desktop. I'm more than happy to help you get things done. 

View solution in original post

2 Comments 2
jamespaul
Moderator

Customer deposits

Hello, Ed-IRM.

 

It's good to hear that your business is getting bigger. I have a way to help you move the existing A/R deposit or balances to the new liability account. 

 

You'll want to use a journal entry to move the deposit or balances from the existing A/R account to the new liability account. To create a journal entry:

 

  1. Click the Company menu, then select Make General Journal Entries
  2. Under ACCOUNT, select the existing A/R account and the new liability account.
  3. Enter the debit and credit amounts.
  4. Add a journal entry number.
  5. Once done, click Save & Close

 

JEQBDT.PNG

 

Note: If it prompts you to enter a name with the A/R account, select a customer profile under NAME. 

 

This article can also guide you in handing journal entries: Create a journal entry in QuickBooks Desktop for Windows or Mac.

 

While you can easily set accounts for debit and credits, I still recommend consulting an accountant. They'll ensure your books are correct and accurate as you transfer the balances. 

 

After moving the deposits, I'm sure you'll have other transactions to take care of. Our articles can help you record income and other sales transactions. Just browse them here to get started. 

 

Leave a comment below if you have other questions regarding the processes in QuickBooks Desktop. I'm more than happy to help you get things done. 

Ed-IRM
Level 1

Customer deposits

That worked great.  Thanks.  

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