Applying a customer deposit to an invoice or sales order

Ok, I'm getting there. Also, I was not clear in my original post. I do not have bank feeds set up.

So far I understand I need to:

1. Have an Other Currently Liability Account

2. Have a Customer Deposit item

3. Create a Sales Receipt for the deposit which is $250 (it goes to Undeposited Funds) 

****Question: Let's say the customer paid the deposit by ACH. Those funds are already in my actual bank account and shows up as a $250 line item. To match the $250 deposit in my QB register to my bank register, can I at this point do a Make Deposit so the $250 shows up as a credit in my QB register? Now I would have a $250 line item credit showing in my real bank register (the one on my bank's online website), and I would also have a matching $250 line item credit in my QB register. Is this correct?

4. When I create the invoice for $1000, I add the Customer Deposit Item on the invoice as a negative number, reducing the balance owed by $250.

5. When the balance of the invoice is paid off ($750), I can then Receive Payment on the invoice and Make Deposit. The balance on the invoice is now $0.00 and again, the $750 line item in the QB register matches the $750 line item in my real bank account's register. 

6. When I get my bank statement at the end of the month, it will show 2 credits because I got 2 payments, and my QB register will also show the same 2 credits, making reconciliation easer.

Do I have this all figured out yet? Thank you for your excellent help!

Ok, I'm getting there. Also, I was not clear in my original post. I do not have bank feeds set up.

So far I understand I need to:

1. Have an Other Currently Liability Account

2. Have a Customer Deposit item

3. Create a Sales Receipt for the deposit which is $250 (it goes to Undeposited Funds) 

****Question: Let's say the customer paid the deposit by ACH. Those funds are already in my actual bank account and shows up as a $250 line item. To match the $250 deposit in my QB register to my bank register, can I at this point do a Make Deposit so the $250 shows up as a credit in my QB register? Now I would have a $250 line item credit showing in my real bank register (the one on my bank's online website), and I would also have a matching $250 line item credit in my QB register. Is this correct?

4. When I create the invoice for $1000, I add the Customer Deposit Item on the invoice as a negative number, reducing the balance owed by $500.

5. When the balance of the invoice is paid off ($750), I can then Receive Payment on the invoice and Make Deposit. The balance on the invoice is now $0.00.

6. Now I have a 2 line item credits in my online account, and 2 line item credits in my QB register.

Ok, I'm getting there. Also, I was not clear in my original post. I do not have bank feeds set up.

So far I understand I need to:

1. Have an Other Currently Liability Account

2. Have a Customer Deposit item

3. Create a Sales Receipt for the deposit which is $250 (it goes to Undeposited Funds) 

****Question: Let's say the customer paid the deposit by ACH. Those funds are already in my actual bank account and shows up as a $250 line item. To match the $250 deposit in my QB register to my bank register, can I at this point do a Make Deposit so the $250 shows up as a credit in my QB register? Now I would have a $250 line item credit showing in my real bank register (the one on my bank's online website), and I would also have a matching $250 line item credit in my QB register. Is this correct?

4. When I create the invoice for $1000, I add the Customer Deposit Item on the invoice as a negative number, reducing the balance owed by $500.

5. When the balance of the invoice is paid off ($750), I can then Receive Payment on the invoice and Make Deposit. The balance on the invoice is now $0.00.

6. Now I have a 2 line item credits in my online account, and 2 line item credits in my QB register.

Hello there, @Maverick2. 

Thanks for coming back with more detailed information on your concerns. I appreciate you for following the steps shared by my peer. 

Yes, everything you did is all correct. There should be two credits shown on your bank account as well as in the QuickBooks register. Good work on that! 

For future reference, you might want to set up your banking or credit card accounts in QuickBooks for easy tracking and reconciliation. 

Feel free to give us an update or if you have additional concerns. We're always around to help in any way we can. 

Hello,

I read the above and it doesn't answer what my question will be.  Let's say I took in a customer deposit of $200  I entered it in under "Enter Sales Receipts".  Now, I have an invoice I need to send to the customer, however the invoice is only for $168, which means there is a credit owed to the customer of $32.00.  In the invoice I entered in the customer deposit of $200 as (-$200 in the total column) so that it shows a credit of $-32, however it will not allow me to save the invoice with a credit amount.  How is this done? I am a bit confused and want to make sure that it is correct.  I need to issue them a refund to their credit card and we do not use the credit card feature in quickbooks. I will be using another app to issue the refund.

Please help!

Thank you,

Joy

Hello, @altcur.

I can share some insights on how you can handle customer refunds in QuickBooks Desktop.

Instead using of the sales receipt, you need to create a bank deposit for $200. Here's how:

1. Go to the Banking menu, then choose Make Deposits.
2. In the Received From column, enter the customer name on 2 lines.
3. For this, use 2 accounts. Accounts Receivable to apply to the invoice and an income account for the refund. See this:
   

After that, you can receive the payment to the invoice. Follow the steps below:

1. Go to the Customer menu, then Receive Payments.
2. Mark the invoice, and click Apply credits at the bottom.
   
3. Click on the available credit, then press Done.

After that, you can record the refund for the customer by issuing a check. For that, use the income account you used on the bank deposit. Here's how:

1. Go to Banking, then Write Checks.
2. Use the income account you choose for the $32.
   
3. Once done, press Save & Close.
4. This process will offset the income. See this:
   

Let me know if you have other concerns with the refund process. I'll be right here to help. Have a good one!

Good morning,

I am sorry that I am getting in on your feed, but I am having the same issue.  BUT, by problem lies with where the revenue goes when the work is done.  If the work is completed in June, but the invoice is created in July and payment is received in July, DO I apply the revenue to June?  This all has me alittle confused as to where and when to apply the revenue after the deposit is generated and the invoice is created.  Thank you for your help.

You don't need to say sorry, @aliceevyonemeadows. QuickBooks Community threads are open to all customers. 

I have information about depositing invoice revenue in QuickBooks Desktop. This way, I can guide you accordingly in handling your books. 

Please know that QuickBooks is for recording purposes only. We need to follow what happens in real life. As the deposit is generated, you'll need to apply the revenue in July.

Visit this link to learn how to deposit payments into two different banks or other current asset accounts: Record and make bank deposits in QuickBooks Desktop.

Additionally, check out these articles below on how to reconcile bank accounts and personalize sales forms in QuickBooks: 

• Reconcile an invoice in QuickBooks Desktop
• Use and customize form templates in QuickBooks.

If you have any follow-up questions about your invoice transactions, add a comment below. I'm always here to help. Keep safe.