Customers Credit

Managing a deposit for future use is essential today to ensure smooth transactions and seamless record-keeping, @Eve2019. Let's go through the detailed steps, from recording a deposit to applying it as a credit to an invoice.

 

To record a deposit for future application to an invoice, you should select an account that affects Accounts Receivable. Begin by recording the deposit. Here’s how to proceed:

 

1. In Banking, click Make Deposits. 
2. Select the customer who made the deposit in the Received from. 
3. For the From Account, choose an Account Receivable and put the amount afterwards. Ensure to enter all important details. 
4. If done, hit the Save & Close.

 

 

After creating the Invoice, you can now apply the deposit as a credit to it. Follow the steps below for guidance:

 

1. Go to the Customers and select Receive Payments. 
2. Choose the customer you chose when creating the deposit in the Received From field. 
3. Enter the amount, check the box for the invoice you created, and tick Apply Credits from the Unused Credits below. Select the credit from the Available Credits and tap Done.
4. If completed, you can now Save & Close.

 

 

To ensure that your QBDT records align with your actual bank accounts, make sure to reconcile your accounts accordingly.

 

Accurately applying payments to created invoices plays a vital role in managing sales. If you need further assistance with handling deposits or any QuickBooks Desktop concerns, feel free to reach out anytime.

Hello, Step 1: Create an Account for Advance Payments 1. Go to the "Chart of Accounts" section. 2. Create a new account under the "Liabilities" section and name it "Advance for Customer." 3. Set the account type to "Other Current Liabilities" and the detail type accordingly. 4. Name the account clearly and set the opening balance date (e.g., January 1, 2020). 5. Save the account details. Step 2: Create an Item for Advance Booking 1. Navigate to the "Products and Services" section. 2. Create a new service item and name it "Advance Booking Service." 3. ATTENTION: Link the income account for this item to the "Advance for Customer" account created earlier. 4. Ensure that the details are correctly entered, and save the service item. Step 3: Record Advance Payment Received 1. Go to the "Customer" section and select "New Payment." 2. Choose the customer and input the payment date. 3. Specify the payment method (e.g., cash, check) and enter transaction details like the reference number. 4. In the "Products/Services" section, select "Advance Booking Service." 5. Enter the quantity and rate to calculate the payment amount. 6. Save the transaction. Step 4: Record Service Provided 1. Open the "Invoice" section and create a new invoice for the customer. 2. Input the date when the service was provided and choose the "Advance Booking Service" item. 3. Specify the quantity, rate, and amount to reflect the service provided. 4. Save and close the invoice. Point to be noted that in amount text box enter amount with negative value ( i.e -500 ) Final Review: • Check the balance sheet to ensure that the "Advance for Customer" account reflects the correct liability after recording the payment. Thanks, Sheikh Nasir PAK BOOKKEEPING SERVICES.