Bank transaction and retainer

MKT22191 · ‎August 14, 2020

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!

Rustler · ‎August 15, 2020

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

View solution in original post

Rustler · ‎August 15, 2020

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 · ‎August 15, 2020

@Rustler Thank you again!!!

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Bank transaction and retainer