Changing default account for customer credits

Chuberts · ‎December 14, 2022

Hello

My client collects deposits as they work on a project, sending the final invoice when the project is complete. Currently we put the deposits into a customer deposits liability account from the banking feed, and at the time of invoice I undo the accepted transaction and apply it to the invoice. This takes a bit of time and makes doing bank recs a bit annoying.

I have been trying to play around with the receive payment function from the +New screen. Basically, I enter the customer and the amount of their deposit without applying it to a invoice. The system then will create a credit. But these credits sit in AR where I would prefer them to be in my customer deposits liability account to allow for cleaner reporting and AR to be just the amounts owing on completed invoices. Is there a way to change the settings so doing the receive payments credit will go to that account?

Thank you

Tori B · ‎December 14, 2022

How are you doing today, @Chuberts?

I hope all is well. It's great having you here in the QuickBooks Community.

If I understand correctly, are you asking how to select a different account to deposit the funds from a customer payment? If so, you can choose which account you'd like the money to deposit from the Receive Payment screen. Let me show you how to choose below.

Open the Receive Payment screen.
In the Deposit to section, select the account you wish to deposit to.

That's all there is to it. Please let me know if this isn't what you were referring to.

I'm here if you have any questions or concerns. Take care!

Chuberts · ‎December 14, 2022

Not quite. The deposit goes to the bank (debit side) and thats correct. I need the credit side of the transaction to be posted to my liability account, not AR which is the default

ZackE · ‎December 14, 2022

Thanks for getting back with the Community, Chuberts.

QuickBooks uses double-entry accounting, which means each transaction you create changes two or more accounts in your ledger. Each of these changes involves a credit and a debit applied to one or more accounts. For most transactions, entries of credits or debits are handled by the platform itself. Understanding the way credits and debits work will help you understand your basic functions behind transactions and what to expect when entering them.

Since QuickBooks uses your Accounts Receivable (AR) account by default when creating invoices, there isn't a process Intuit has for adding the credit side of a transaction to liability accounts. I'd recommend checking with an accounting professional to confirm if there's an adjustment that can be made to move these funds into a different account.

If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:

Go to our Find a ProAdvisor page.
Use the City or ZIP search field to specify a location.
Select Find a ProAdvisor.
Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.

Once you've found an accountant, they can be contacted through their Send a message form:

Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
Hit Send message.

I've also included a detailed resource about working with accounts, debits, and credits which may come in handy moving forward: How accounts are affected by debits & credits

Please don't hesitate to send a reply if there's any questions. Have a great day!

Topics

Training

Community

Resources

Changing default account for customer credits