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MKT22191
Level 3

Bank transaction and retainer

Hi!  Hope someone can help me out. 

 

My company receives payments from customers before providing products.  So I set up liability account and retainer as explained in the link: https://quickbooks.intuit.com/learn-support/en-us/business-accounts/record-a-retainer-or-deposit/00/...

 

My question is, when the bank (connected to QBO) shows a payment from a customer, do I categorize it as the liability item that I set up, or do I make it sales receipt?  If I categorize it as liability, does it become a sale income when a retainer is applied to an invoice?  I am confused as to how these transactions related each other..

 

Thank you for the QB community!   

Solved
Best answer August 15, 2020

Best Answers
Rustler
Level 15

Bank transaction and retainer

The work flow is and always has been, enter transactions, download banking, match

 

so as the referenced procedure states, use a sales receipt to record receiving the retainer, deposit, then match the download to the deposit

 

and to use the retainer on the final sale, refer  to the last paragraph in the article you referenced

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2 Comments 2
Rustler
Level 15

Bank transaction and retainer

The work flow is and always has been, enter transactions, download banking, match

 

so as the referenced procedure states, use a sales receipt to record receiving the retainer, deposit, then match the download to the deposit

 

and to use the retainer on the final sale, refer  to the last paragraph in the article you referenced

MKT22191
Level 3

Bank transaction and retainer

@Rustler Thank you again!!! 

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