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Community Backer **

journal entry payments

Hello, Last year a customer gave me check of $200 for later use/for credit. I deposited the check to my bank andfollowed by entering it in Desktop QB. I enter the transaction in QB in the JOUNAL ENTRY to my CUSTOMER DEPOSITS account. Now he placed an order I have created the invoice now I need to pay the invoice. I try to APPLY PAYMENTS and then DISCOUNT AND CREDITS but I see nothing when the DISCOUNT & CREDITS window appear. How can I apply the credit of $200 to the new order/invoice the total of the invoice is $133.56. Please advice. Thanks in advance.
4 Comments
QuickBooks Team

Re: journal entry payments

Hello there, @Eve2019.

 

Let me help you apply the credit to the invoice by verifying the journal entry you created.

 

Just to clarify, when you create the journal entry, did you use the Accounts Receivable account partnered by Customer Deposit? If not, you'll need to set the Accounts Receivable on the credit side then Customer Deposit on the debit side.

 

Here's how:

 

  1. Go to the Accountant menu.
  2. Click Make General Journal Entries.
  3. Select the Reports tab.
  4. In the Entries entered drop-down, select All Entries.
  5. Find the journal entry you created.
  6. In the Credit column, use the Account Receivable.
  7. In the Debit column, select Customer Deposit.
  8. Hit Save & Close.

 

Once done, you can now apply the credit to the invoice.

If you encounter any error when applying payments, you can check out this article for your reference: Resolve Common Issues when Applying a Payment Towards an Invoice.

 

You can also visit our Help Articles for QuickBooks if in case you need tips and related articles in the future. 

 

Please feel free to post any questions you have below. The Community is always here to help out.

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Community Backer **

Re: journal entry payments

Hello Mark_R, This is how I entered the transaction in QB. MAKE GENERAL JOURNAL ENTRIES: ACCOUNT DEBIT CREDIT MEMO NAME Checking- XXX $200 Customer Deposits $200 * I did step 6 and got a message box - REPORT NEED TO BE REFRESH -DATA THAT AFFECT THIS REPORT HAS CHANGE. I clicked OK *Also, I did step 6 the transaction of the $200 was removed from my customer deposit. is this how is this correct? *What will happend to the credit balance of $66.44 do I have to go back to step 6 and change it back to my customer deposits account... *Last question- I'm on my customers tab and notice that a balance of $-200 is showing for this specific customer.. any thoughts? Thank you so much!
Community Backer **

Re: journal entry payments

Mark, Another thing I notice and confused about is that after I did the steps you provided I notice that the credit apply to customer's invoice of $133.56 is showing on my record deposits. so if I deposit this amount will it mess up my numbers from not matching bank statements and quickbooks. Thanks
Moderator

Re: journal entry payments

I'd be happy to assist you today, Eve2019.

You've got me here today to provide additional information concerning applying for journal entries as payments via QuickBooks Desktop.

 

You can set up a deposit or retainer process for your company in QuickBooks Online. The retainer or deposit is treated as a liability to show that, although your business is holding the money from a deposit or retainer, it doesn't belong to you until it's used to pay for services.

 

So when you invoice the customer and receive payment against it, you'll turn that liability into income. The steps in the following sections will guide you through:

 

  • Setting up the deposit or retainer process
  • Recording received deposits or retainers
  • Accepting deposits or retainers as income
  • Tracking customer deposits or retainers received
  • Paying customer expenses with retainers

Step 1: Create a liability account to track retainers:

 

  1. Go to Lists at the top menu, then select Chart of Accounts.
  2. Select the Account drop-down at the bottom, then choose New to create a new account.
  3. Select an account type, then Continue.
  4. Enter the account details.
  5. Select Save and close.

Step 2: Create a retainer item:

 

  1. From the Lists menu, select Item List 
  2. On the Item List window, select Item > New.
  3. Select the Service type.
  4. Fill in the item fields.
  5. Choose the Trust Liability Account.

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  6. Save the item.

You can follow the steps in Step 1 in creating a Trust Liability account. For the other steps, check out this article: https://quickbooks.intuit.com/community/Help-Articles/Manage-upfront-deposits-or-retainers/m-p/20191....

 

These articles are good references as well:

 

For additional help, you can also reach out to our QuickBooks Desktop Support

 

  1. Within your QuickBooks Desktop, click Help at the top menu bar.
  2. Click Contact us.
  3. To route you to the correct support expert, we need to know what type of question you have. Give a brief description of your issue and click Continue.
  4. We’ll provide you a few options. You choose which one is best for you.

For more questions, feel free to drop a reply below. I'll be more than willing to lend you a hand.

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