Prepayment not transfering over to invoice

I know a way how to properly record the prepayment on a sales order in QuickBooks Desktop, n_pacdoor.

The customer prepayments or customer deposits are when you get money before a product or service is done and you don't have an invoice for the payment yet. To properly handle this one, we'll need first to enable the Prepayment feature. Here's how:

1. Go to Edit on the top menu and then Preferences.
2. Click Payments and then Company Preferences.
3. Go to Prepayments and then choose Prepayment Settings.
4. Select the checkbox to Turn On Prepayments.
5. Select a current liability account from the dropdown. You can create a new current liability account. Just select Add New.
6. Once you are done, select OK and then select OK again in preferences.

Then, we can create and save a new sales order or open any existing sales order. Let me guide you on how:

1. Go to Sales Order and select Receive Payments.
2. In the Customer Payment, you'll see a checkbox on your customer payment called Prepayment on Sales Order.
3. If you want to open the Customer Payment from Home or Customer Center, first select the checkbox Prepayment on Sales Order.
4. Enter the amount and other details for the prepayment and then press Save and Close.

Once done, we can check the sales order to make sure the prepayment amount and balance due have been updated. Then, print the sales order that shows you received a prepayment and apply a prepayment credit to an invoice. Just follow the steps and details in this article: Receive customer prepayments on sales orders in QuickBooks Desktop Enterprise.

Just in case you need to accept upfront deposits or retainers for products or services, you can check out this article for the steps and details: Manage upfront deposits or retainers. Also, there are several options you can choose in handling customer credits in QuickBooks Desktop. I've attached an article you can use to help decide how to give money back or credit in the future: Give your customer credit or refund in QuickBooks Desktop for Windows.

Feel free to add a comment below if you need more assistance handling customer prepayments or any QuickBooks-related concerns. We're always available and ready to lend a hand. Take care.

We already have prepayment set up and are receiving on them. The problem is that some of the payments are not transferring over to the invoice when it is made. We are receiving the pop up that is enabling the transfer.

We already have prepayment set up and are receiving on them. The problem is that we are unable to transfer some of the prepayments over to the invoice when it is created. The pop up is enabling us from transferring the prepayment to the invoice.

Thanks for the clarification, n_pacdoor. I'm here to help you get past this and share why the system doesn't allow you to apply the prepayment when creating the invoice from your sales order.

The error you've encountered is specific to users that are in the multi-user mode. When another user is trying to modify the sales order, it will conflict with your task of applying the prepayment to the created invoice.

In this case, you might want to check with the other users of your QuickBooks company file to verify if they are making some changes to your sales orders. You may ask them to close QuickBooks in the meantime or wait for them to finish so that you can continue linking the prepayment when generating the invoice.

For more information about the access limitations in multi-user mode, kindly review this link: Features available and tasks you can perform in single or multi-user mode in QuickBooks Desktop.

However, if you've confirmed that no other users on the company file are making any changes to your data, please check this article: Fix locked file errors in QuickBooks Desktop. It contains steps on how to handle some problems in the system.

I'm also adding this article that can guide you on a seamless reconciliation process in QuickBooks to ensure your data in the program corresponds with your bank or credit card account's statement: Reconcile an account in QuickBooks Desktop.

Let me know if you have more prepayments-related queries by replying to this thread. I'm always available to assist you. Have a good one.