I can help you handle upfront deposits, Angie13.
In QuickBooks Desktop (QBDT), you don't need to create an invoice when collecting the upfront deposit. Instead, make a sales receipt to give to your customer. I'll guide you on how to do it.
First, create a liability account to track customer retainers. Here's how:
- Go to the Lists menu and select Chart of Accounts.
- Click the Account drop-down arrow, then New.
- Select the Other Account Types drop-down arrow, and choose Other Current Liability.
- Tap Continue.
- Enter the account name.
- Hit Save & Close.
Then, create an item to use when recording upfront deposits or retainers.
- Go to the Lists menu and select Item List.
- Click the Item drop-down arrow and New.
- Select the purpose of the deposits you collect from the Type drop-down arrow.
- Enter the name of the product.
- Choose the Upfront Deposit liability account you created from the Account drop-down list.
- Hit OK.
After that, create a sales receipt when you receive the money from a customer:
- Go to the Customers menu and select Enter Sales Receipts.
- From the Customer: Job drop-down menu, select the customer.
- Enter the other information needed.
- Select the upfront deposit item you created from the Item drop-down arrow.
- Put the amount.
- Hit Save and Close.
Once you need to apply the upfront deposits to invoices, the following are the two ways to do it:
- Enter the upfront deposit or retainer as a line item on the invoice
- Apply the upfront deposit or retainer as a credit
You can check this article and proceed to Step 5 for the detailed instructions: Manage Upfront Deposits or Retainers.
I'm also including these guides on how to update the retainer's account:
Please come back if you need further assistance in handling upfront deposits. It's our priority to ensure everything is correct.