I am a travel agent. If I have a transaction where I am holding client's deposit for future travel booking. What would this be categorized as? And final steps when paid?

We have a way to get around with this, brittney4.

In this scenario where you receive deposits in advance, we can set up retainer. This would allow you to record the deposits and use it for your customer's future transactions. The details on how to categorize and deal with it are laid out in this article: Record a retainer or deposit.

Though that's how we handle retainers in QuickBooks Online, we still recommend reaching out to your accountant. They know what's best for you and your books.

We got your back if you have additional questions as you go through with the steps. Have a great day!