Customer/Client Advance Payments, Retention Payments, and Progressive Invoice

Thanks for that. I was able to follow that clearly.

Just for a follow up question.

Let's say I have multiple invoices in different works that are ongoing, is there a way that I can filter or export a report for the advance payment and retention for each works?

I'm using the "Project" feature that qbo has.

Thanks again!

Thanks for your prompt response, @RMVz.

I'm glad that my peer has given you an insightful resolution and seamlessly followed her recommendation.

In a specific project, you will see the breakdown of all income, cost, and profit. The financial data of that project will reflect in the Overview tab, where you can run transaction reports. In your case, you'll want to select the Income section to see the advance payment and retention for each work.  You may or may not want to customize it since this will reflect all income to that project.

Here's how:

1. Go to Projects and then select the project in question.
2. From the Overview tab, click the Income section.
   
   
    
3. From there, choose the Export icon beside the Printer icon.
4. Choose Excel or PDF.
   
   

In addition, I've attached some articles as your reference as you create a progress invoice and more details about the Projects menu:

• Set up and create projects in QuickBooks Online
• Create recurring transactions in QuickBooks Online
• Set up and send recurring invoices in QuickBooks Online

As always, feel free to comment if you need more assistance. We're always here to lend a hand. Keep safe and well.

I have an issue:

My business is about creating travel experiences. So I'm having troubles to manage the customer payments without using invoices becouse I haven't earn it. For example: 

1. I create an estimate for 2.000 dolars that includes 3 services (in the projects area).

2. The customer make an advance payment of 500 dollars.  If I want to receive this payment the project area will ask for an invoice, but I cannot issue an invoice because the reveneu will be recognized only when the client travels (accrual method).Usually my projects are contracted today but executed months after. During that period the client makes parcial payments, and I make some payments as a downpayments to my vendors for securing the future service. So as you can see, accrual based, all my operation is full of payments in advance from customers and to vendors. But, as I can undestand the project module works based on expenses and income (recognized in the P&L). So how can I manage my projects without doing hundreds of manual reclassifications?

I would like to call the estimate, generate a receipt of and advance payment, then make advance payments to vendors tied to the project. And after my client fully paid, turn all into an invoice recognizing the revenue, and making the advance payments move to the P&L as a closed project. Is this possible?

We're delighted to have you here in the Community, Carlos.

I've come to share information and steps to help you manage the advance payments you've received.

When handling these partial payments in QuickBooks Online (QBO), we'll need to record them as retainers or deposits. Since you've received the advance payments from a customer who hasn't rendered their services yet, you can set up a deposit or retainer to hold the money that is treated as a liability and turn them into an income once you've invoiced the customer.

To do that, we'll first need to create a liability account to track the amount of the retainers you receive from your customers. Here's how:

1. In your QBO account, go to Settings and select Chart of accounts.
2. Select New.
3. From the Account Type ▼ dropdown menu, select Other Current Liabilities.
4. From the Detail Type ▼ dropdown menu, Trust Accounts - Liabilities.
5. Enter a Name for the account (for example, Trust Liabilities) or accept the suggested name.
6. Select an option from the When do you want to start tracking your finances from the is account in QuickBooks? dropdown list.
7. Once done, select Save and Close.

Then, we'll create a retainer item. Here's how:

1. Select Settings and select Products and services.
2. Select New.
3. From the Product/Service information panel, select Service.
4. Enter a name for the new product or service item (for example, Retainer).
5. From the Income account ▼ dropdown menu, select the liability account created in Step 1.
6. Select Save and close.

Once you've set up the accounts and the retainer or deposit item, you can begin to create Sales Receipts for the deposits or retainers you received. You can refer to the steps below.

1. Click on the + New icon and select Sales receipt.
2. Select the Customer name from the dropdown.
3. From the Deposit to ▼ dropdown, select the separate trust liability bank account you created, your main operating account, or the account this money will be kept in.
4. In the Product/Service column, select the Retainer or Deposit item you set up.
5. Enter the amount received for the retainer or deposit in the Rate or Amount column.
6. Once done, select Save and close.

To guide you with the complete steps, please refer to this article for more detailed information: Record a retainer or deposit.

Moreover, I've added this article to guide you in reviewing your business finances and other accounting data: Run reports in QuickBooks Online.

You're always welcome to reply in the comments below if you require additional assistance managing your customer's payments. 

We'd be glad to assist further. Have a good one!