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Applying a deposit to an invoice in QBO

Hi 

 

I am using QBO (Qb Online) and we take customer deposits in advance of the goods being disopatch.

 

e.g. Customer oders a boat for $50,000 and pays a deposit of $5000

 

I have tried creating an item with a liability account and invoicing the customer this creates the deposit on the Balance sheet, i have had to turn off GST (Australia) so that there is no tax liability.

 

I have also tried using a sales receipt and this appears to be the same

 

when the customer collects their boat and pays the balance of $45,000 i want any deposits to be applied to the invoice so that the deposit balance does QBO do this automaticall e.g. when i enter the customer name be great for it to pop up and say "Hey you have a $5000 deposit would you like to apply it to this transaction ? "

 

Any pointers would be a great assistance.

 

best

 

Jeremy

 

Solved
Best answer 04-28-2018

Accepted Solutions
Highlighted
ProAdvisor

Re: Applying a deposit to an invoice in QBO

In QuickBooks Online (QBO), Delayed Credit form (create + sign > Customers > Delayed Credit) is a non-posting type. This works like Sales Authorization form that you would issue to a customer when expecting product returns. Once you receive return items, you create an Invoice (in this case like issuing a Credit Memo type).


For more details, if interested, check out our blog article:
http://newqbo.com/customers/create-customers/delayed-credit/

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6 Comments
ProAdvisor

Re: Applying a deposit to an invoice in QBO

@jeremyncb

 

Currently, in QBO, nothing will pop-up to warn you to clear $5,000 deposit when you create an Invoice for $50,000. Unfortunately, you will have to manually clear $5,000 deposit sitting on liability account. But this is a great idea, be sure them your feedback request.

http://feedback.qbo.intuit.com/

Not applicable

Re: Applying a deposit to an invoice in QBO

well what about delayed credits? it seems like that comes up as an auto-prompt when creating invoices... could it work instead of the old-fashioned liability acct option? 

 

I came across this board while looking for answers to the same question.. still unsure! 

Anonymous
Not applicable

Re: Applying a deposit to an invoice in QBO

Hey @shylacct,

 

That's a good thought, delayed credits (more on the differences) are a good way to anticipate future transactions posting from the same account, but I think in this case part of applying said deposit is about being deliberate about the timing and way the money is handled.

 

Liability accounts are mapped differently, a delayed credit would be pulled from the same account as the item/service invoiced. A delayed charge coming for an item in a specific income account would only be applying credits from that same income account and not the liability account.  

 

@vpcontroller, correct me if I am wrong on this, but this is part of GAAP principles?

Highlighted
ProAdvisor

Re: Applying a deposit to an invoice in QBO

In QuickBooks Online (QBO), Delayed Credit form (create + sign > Customers > Delayed Credit) is a non-posting type. This works like Sales Authorization form that you would issue to a customer when expecting product returns. Once you receive return items, you create an Invoice (in this case like issuing a Credit Memo type).


For more details, if interested, check out our blog article:
http://newqbo.com/customers/create-customers/delayed-credit/

View solution in original post

Anonymous
Not applicable

Re: Applying a deposit to an invoice in QBO

@vpcontroller, thank you for that last bit of clarification (and articulating what I meant by "mapping"). Since delayed credits are non-posting, they won't show up on reports and if you are dealing with a large volume of deposits in this manner, you won't see them. 

 

@shylacct, I highly recommend @vpcontroller's work, his explanations are extremely detailed and insightful. 

Not applicable

Re: Applying a deposit to an invoice in QBO

I want our client deposits to sit in liabilities according to GAPP. Thanks for your answer, but what are the actual steps to "manually clear" these and apply them to an invoice?

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