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:
Go to the Gear icon, then select Chart of Accounts.
- Click the New button. From the Account Type drop-down menu, select Other Current Liabilities.
- From the Detail Type drop-down menu, Client Trust Accounts - Liabilities.
- 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.
- From the Gear icon, select Products and Services.
- Click New and select Service.
- Enter a name. From the Income account drop-down, select the liability account you created.
- 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!