cancel
Showing results for 
Search instead for 
Did you mean: 
r-vinson
Level 1

How do you post a customer prepay?

where do you post a customer prepaid invoice
1 Comment 1
AlexV
QuickBooks Team

How do you post a customer prepay?

You can record it as a retainer, r-vinson.

 

This is a payment treated as a liability. Then, when you invoice the customer and receive payment against it, you'll turn that liability into income.

 

We'll set up a liability account first. Please follow these steps:

  1. Go to the Gear icon, then select Chart of Accounts.

  2. Click the New button. From the Account Type drop-down menu, select Other Current Liabilities.
  3. From the Detail Type drop-down menu, Client Trust Accounts - Liabilities.
  4. Enter a name for the account and select Save and close.

The next thing we need to do is to create a retainer item that we can use to record the payment.

  1. From the Gear icon, select Products and Services.
  2. Click New and select Service.
  3. Enter a name. From the Income account drop-down, select the liability account you created.
  4. Select Save and close.

Once done, you can create a Sales Receipt or Invoice for deposits or retainers. Please check this link and proceed to Step 4: Record a retainer or deposit.

 

Keep your posts coming if you need more help. Stay safe!

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us