Invoice a Customer to Establish a Credit In Advance

branholm · ‎December 12, 2018

A customer of ours is planning to make a purchase in the new year, but is asking if they can pay now in advance in order to utilize funds from the current budget. I'm wondering if I can invoice a customer to establish a credit on their account which can then be used later to apply to the invoice when they decide what exactly they need to purchase in January.

I considered a Sales Receipt but the problem is that I need to provide their contact with an invoice so that their business office can authorize and make arrangement for a payment.

Rasa-LilaM · ‎December 12, 2018

Thanks for coming back to the Community, branholm.

I’m here to ensure you can effectively track the deposit so it won’t throw off your records.

As mentioned by our Established Community Backer @Rustler, create an invoice so the client can send the deposit. Once you receive the payment, delete the invoice and create a new one for the actual purchase.

That way, it won’t create a duplicate in your account. Next, input the actual payment and then enter the deposit to properly record the transaction.

To receive payment:

Go to the Plus icon (+) at the top.
From the Customers section, select Receive Payment.
Choose the name of the customer from the drop-down menu.
From the Outstanding Transactions section, select the transaction that you’d like for QBO to calculate.
Select the payment method.
Click on Save and close.

You’ll find the detailed the instructions on how to create a bank deposit through this link: Bank deposit.

That'll do it. The resolution steps will point you in the right direction today.

If there's anything else that I can help you with, don't hesitate to post a comment below. I'll be glad to assist you further. Wishing you the best.

View solution in original post

Rustler · ‎December 12, 2018

create a liability account for customer deposits, and then create a service type item for the customer deposit which links to the liability account

use that item on a sales receipt to record receiving the deposit

when you make the sale next year, list what is being sold, the deposit item with a qty of negative one and the amount. the customer pays the balance if any.

branholm · ‎December 12, 2018

Hi Rustler,

Thanks for that - my only concern is that before the customer can provide the "deposit" they still need an Invoice from me to issue payment. I assume that I cannot Invoice them for the credit and then try Invoice them again for the actual charge since Quickbooks would consider them to be separate charges and not associated with one another...?

Rustler · ‎December 12, 2018

you can use an invoice instead of a sales receipt, use the deposit item on the invoice, receive payment

branholm · ‎December 12, 2018

But then when I invoice them for the actual purchase later on, won't Quickbooks then record a second purchase from the customer? If I invoice them now for a $500 deposit, and then Invoice them later for the $500 actual sale, Quickbooks will have on record that I've received $1000 in total from the customer when that's not the case.

Rasa-LilaM · ‎December 12, 2018

Thanks for coming back to the Community, branholm.

I’m here to ensure you can effectively track the deposit so it won’t throw off your records.

As mentioned by our Established Community Backer @Rustler, create an invoice so the client can send the deposit. Once you receive the payment, delete the invoice and create a new one for the actual purchase.

That way, it won’t create a duplicate in your account. Next, input the actual payment and then enter the deposit to properly record the transaction.

To receive payment:

Go to the Plus icon (+) at the top.
From the Customers section, select Receive Payment.
Choose the name of the customer from the drop-down menu.
From the Outstanding Transactions section, select the transaction that you’d like for QBO to calculate.
Select the payment method.
Click on Save and close.

You’ll find the detailed the instructions on how to create a bank deposit through this link: Bank deposit.

That'll do it. The resolution steps will point you in the right direction today.

If there's anything else that I can help you with, don't hesitate to post a comment below. I'll be glad to assist you further. Wishing you the best.

branholm · ‎December 13, 2018

Hi Rasa-LilaM,

Thanks for all that info.

I didn't realize I could delete an Invoice after Payment was received. So, once I've received payment and delete the Invoice, I'll be able to connect the payment to the new Invoice once I create it?

Appreciate all the input here!

Rose-A · ‎December 13, 2018

I'd be happy to assist you today, branholm.

Allow me to lend a helping hand in connecting the payment to the new invoice.

Yes, you'll be able to link or connect the payment once you create a new invoice.

Let me show you how:

Open the Unapplied payment.
Select the new invoice you created.
Hit Save and close.

For your reference, see screenshots below.

Also, you may find these articles helpful:

This will get everything nice and organized in your QuickBooks Online account. Let me know if there's anything else you need. Have a good one.

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Invoice a Customer to Establish a Credit In Advance