How do I record a pre-payment from a customer in Quickbooks self-employed?

I'm here to guide you in recording a pre-payment from a customer in Quickbooks Self-Employed, @julia-jmagrants-.

We can enter an income in your QBSE account manually. Then, add a description or note to know have an idea that this is a prepayment. 

Here's how:

1. Go to the Transaction menu and select Add Transaction.
2. Enter the amount and a description.
3. Choose the Select a category menu. Select the best category to organize your transaction. Learn more about categories.
4. If you have a receipt, you can drag and drop it onto the form.
5. Once done, click Save.

If you're using the mobile app, you can utilize the steps in this article for your reference: Manually add transactions in QuickBooks Self-Employed.

Additionally, I've included an article about categorizing transactions in QBSE. This helps you ensure your books are accurate: Schedule C And Expense Categories.

In case you have other questions in mind about recording prepayment, click the Reply button to let us know. This way, we'll be able to answer them for you. Have a good one!

Thank you! How should I reflect the pre-payment in an invoice? And then account for any amounts that need to be deducted from the pre-payment once work has been completed?

Thanks for getting back in here, @julia-jmagrants-. 

You can send invoices to your customers in QuickBooks Self-Employed so they can pay for their purchases in the future. If your customer wants to make a payment right now or already paid you, enter the transaction manually.

Let me show you how:

1. Click Invoices from the menu, then choose Create invoice.
2. Select an existing customer, or create a new one by entering their name, address, and email address.
3. Decide when you want to be paid by and set the date in the Due Date field.
4. Select Add product & service to add items or services you sold. Enter a description of the service.
5. Choose Flat rate or By hour from the dropdown menu. Or select By item if you're charging for a product. Enter an amount. Then select Add to invoice.
6. To add more items to the invoice, click Add work.
7. When you're ready, select Send invoice to email your invoice. You can also select the arrow and Preview to see what your customer will receive.

 I also suggest consulting an accountant to ensure that your recording is accurate. 

Additionally, I've attach a link to help create a new transaction from a receipt image: Record or attach expense receipts in QuickBooks Self-Employed.

Feel at ease to get back in here if you have follow up questions. I'll be around to help. Keep safe!