How do I create an invoice for a down payment for a client for a project that we've sent an estimate on?

Glad to have you here on the Community page, @KungFuMel.

You're right in converting 50% of the estimate into an invoice. Once a percentage or an amount is added to an invoice, it'll display a current balance under the Customer section.

You can apply the remaining balance by recording a new invoice, then add the amounts of the estimate. I can guide you on how.

1. Select Create Invoices from the Customer tab.
2. Pick the customer's name beside the Customer:Job section.
3. Add the remaining amount of the estimate.
4. Save the transaction.

To learn more about estimates, you can check out this link: Create an estimate in QuickBooks Desktop.

Also, here's an article you can read more about the AR workflows in QuickBooks Desktop: Get started with customer transaction workflows in QuickBooks Desktop.

If you have any other questions, please feel free to leave a comment below. I'm more than happy to help. Wishing you a happy holiday!

Thanks so much for the response Angelyn,

So I tried setting it up as you advised, but I still seem to be running into an issue.  Once I've invoiced for work that hasn't been done, we work on the project and we apply hours worked towards the project, it's not going to show that initial deposit as going towards the hours worked as a credit on their account.  It just shows up as a paid invoice instead of a credit towards the work that we need to do.

Thanks for your advise.  

Thanks for getting back to us and providing additional details about your concern, KungFuMel.

Based on the initial post and your current response, you're likely to create an upfront deposit or retainer for the customer. This is because you've received the payment in advance even if you haven't created invoices for the customer.

1. Set up an account for upfront deposits or retainers.
2. Create an upfront deposit item.
3. Record the upfront deposits you receive.
4. Create invoices.
5. Apply the upfront deposit to the invoice.

To see the detailed instructions of every steps, I'd recommend browsing this article: Manage upfront deposits or retainers.

Before following those steps, it is best to create a backup copy to ensure that data is safe for any unexpected result of the process. Also, your accountant would be a great help about this matter, too. They can give you the best option that will suit your business setup.

Keep us posted so we can assist you more with this.

You need to turn on "Progress Invoicing". To do this, "Edit" - "Preferences..." - "Job's and Estimates" (in the menu on the left) - click on "Company Preferences" tab at the top and then enable "Do You Do Progress Invoicing?".  Then when you create an invoice from an estimate, you can choose what percentage of the invoice you want to invoice for. Hope that helps!

You want to send the customer a payment link to receive the down payment from them.  This way you don't have to create an invoice for services that haven't been done yet.  Once paid, it will show as a credit under the customer that can be applied to future invoices.

This would be excellent if it actually worked this way. You can't apply payments made from a payment link to an invoice.  Its ridiculous. It comes through as a payment receipt and cannot be applied to an invoice. There have been questions asked on this very thing in this community. QB personnel recommends deleting the payment receipt then applying the transaction to undeposited funds.