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Community Backer **

Customer's Deposits - QB desktop

Hello,

 

I'm confused on how to use credits from customers and applying it to an order. (I think I have ask this question but did not understand.)

 

-Example. A customer gives me a check of $50 or agrees for me to charge his credit card for $50 for credit.

Later he places an order that is worth those $50 how do I apply payment to that invoice using his credit?

 

I entered the credit in JOURNAL ENTRIES and its under my CUSTOMERS DEPOSITS ACCOUNT.

 

Thank you.

 

Solved
Best answer 06-10-2019

Accepted Solutions
QuickBooks Team

Re: Customer's Deposits - QB desktop

Thank you for the response, @Eve2019!

 

Let's open and review your journal entry created so you can apply it as a credit for your customer's invoice.

 

To start with, one reason that might cause why your journal entry didn't show up as available credits is the placement of your accounts.

 

Thus said, let's pull up your journal entry and it must debit the amount from your checking account and a credit from your accounts receivable account.

 

This way, it'll be posted as available credits and from there, you can apply it as payments for your customer's invoice.

 

In addition, I'll be adding a few screenshots for your visual reference.

 

Capture01.PNG

Capture02.PNG

 

As always, you can visit our Help Articles page for QuickBooks Desktop if in case you need to learn some "How do I" steps.

 

It'll be always my pleasure to help if you have any other questions. I'll be keeping an eye for your response.

5 Comments
Moderator

Re: Customer's Deposits - QB desktop

Sending good vibes to you, Eve2019.

Helping you apply for the credit as the invoice payment is pretty easy. Let's get things sorted out.

 

You can follow the steps below in applying the credit to pay the customer's invoice.

 

Here's how:

 

  1. Click Customers at the top menu bar and choose Receive Payments.
  2. Choose the customer's name.
  3. Click Discounts and Credits.
  4. Go to the Credits tab and select the available credits.
  5. Hit Done.
  6. After applying for the credit, click Save & Close.

z.PNG x.PNG c.PNG

 

You may find this article helpful: Record a credit memo or refund in QuickBooks Desktop.

 

That's it! Hope I helped you get all straightened out today. Let me know if you need more help with applying credits to invoices. Have a great day.

Highlighted
Community Backer **

Re: Customer's Deposits - QB desktop

Hi Rose MarjorieA 

I followed your steps but did not see any of the iformation I entered under the CREDIT tab.

I entered the customer's deposit as JOURNAL ENTRY and when checking my customers deposit account I see the deposit. Do you know what might be the reason I dont see no available credits?

 

Thank you

QuickBooks Team

Re: Customer's Deposits - QB desktop

Thank you for the response, @Eve2019!

 

Let's open and review your journal entry created so you can apply it as a credit for your customer's invoice.

 

To start with, one reason that might cause why your journal entry didn't show up as available credits is the placement of your accounts.

 

Thus said, let's pull up your journal entry and it must debit the amount from your checking account and a credit from your accounts receivable account.

 

This way, it'll be posted as available credits and from there, you can apply it as payments for your customer's invoice.

 

In addition, I'll be adding a few screenshots for your visual reference.

 

Capture01.PNG

Capture02.PNG

 

As always, you can visit our Help Articles page for QuickBooks Desktop if in case you need to learn some "How do I" steps.

 

It'll be always my pleasure to help if you have any other questions. I'll be keeping an eye for your response.

Community Backer **

Re: Customer's Deposits - QB desktop

Hello,

 

Okay, Now I see the credit on my CUSTOMER PAYMENT screen under DISCOUNTS & CREDITS.  Thank you!.... Just to be sure -  Before, I had this credit from customer in my CUSTOMER DEPOSITS account. By me changing ONLY the account (customer deposits) and choosing ACCOUNT RECEIVABLE - leaving the original CREDIT amount , this will deduct and I will no longer see the entry from my customer  in my customer's deposits account, right?

 

Also it is similar question to the first original question. If in my paper bank deposits I see a total of $300 from 2 different customers this happens with my bank when processing credit card transaction the same day it automatically totals the transactions and show as one in my bank statements.

 

Cusotmer #1 payed with credit card and I payed the invoice in desktopQB of $100 the other customer #2 also paid with credit card and I payed the invoice in desktop QB for $120.

 

**Now customer #2 also gave me a deposit of $80 for his upcoming order. ** What is the best way to enter this deposit/transaction that has no invoice yet to show on my deposit statement.

CUST #1 $100

CUST #2 $120 + $80 for upcoming orders

Total of $300 that was recorded in my bank statements for that day.

 

Now its time to deposit these payment transactions in QB to match my bank deposits.

 

In the deposit screen I selected customer #1 deposit  for $100 and  customer #2 deposit of $120 to total $220. How do I enter the $80 also from customer #2.

 

**Now should I enter a third line in the deposit $80 of customer #2  followed by these steps:

RECEIVED FROM: Customer #2  FROM ACCOUNT : Customer Deposit**   If I do this now the deposit will show in my customer deposit account .....What is the right way to enter this transaction

 

Please advie. SORRY if I confused you.

Thank you so much!

 

 

QuickBooks Team

Re: Customer's Deposits - QB desktop

Greetings, @Eve2019.

 

Allow me to join this conversation and provide some clarifications about handling upfront deposits in QuickBooks Desktop.

 

To answer your first question, yes, you are correct. Once a credit has been applied to your customer's invoice, it will be deducted and removed from the customer's deposit account. You may read through the accounts receivable workflow for more details about this process. 

 

On the other note, when recording payments from two different customers, you'll need to deposit the payments ( $100 and $120) under the Undeposited Funds account. To handle the advance payment which is $80, you'll need to create an account for upfront deposits. This account is a current liability account since upfront deposits and retainers are liabilities, not income, even though you deposit the money into your bank account. To give you more information about this procedure, you may refer to this article: Manage upfront deposits or retainers.

 

When matching your transactions into your bank account, you'll need to deposit the payments from the Undeposited Funds account to the correct bank account so you'll be able to match the amount for a total of $300. 

 

If you need further assistance with these steps, I'd suggest reaching out to our Customer Care Team. They have the ability to run a screen-sharing session to guide you through the procedure. 

 

This should get you on the right track.

 

In the event that you should have questions about this, or need anything else, you can find me here. Have a great day!

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