What is the "Deposit" field on the invoice used for

In addition to this question, I have received a deposit from my customer and recorded it in an Other Current Liabilities account I have created called Customer Upfront Retainers. Will using this Deposit field when invoicing the customer reduce this Liability account accordingly? How do I tell QBO to use the correct Liabilities account?

Hello there, PaperPanda.

Let me share with you some information on how to handle upfront retainers in QuickBooks Online (QBO).

There are two ways to apply upfront deposits or retainers to invoices. You can either enter the upfront deposit or retainer as a line item on the invoice or apply the upfront deposit or retainer as a credit.

Here's how to enter an upfront retainer as a line item on an invoice:

1. Open the customer invoice.
2. In the Detail section, select the Upfront Deposit item you created from the Item drop-down list.
3. Enter the amount of deposit to be applied to the invoice in the Amount column.
4. Select Save and close.

Here's how to apply an upfront retainer to an invoice as a credit:

1. From the Customers menu.
2. Select Create Credit Memos/Refunds.
3. From the Customer:Job drop-down list, select the customer or job.
4. In the Amount field, enter the amount of the retainer.
5. Select Save and close.
6. In the Available Credit pop-up dialog that appears, select Apply to an invoice and select OK.
7. In the Apply Credit to Invoice dialog that appears, select the invoice to which to apply the upfront retainer and select Done.

To be more familiar with managing retainers in QuickBooks Online (QBO): How to record a retainer or deposit. 

That's it. Don't hesitate to get back to me if there's anything you need. I'm always here to help you some more.

My issue is that I have filled out the deposit amount but when I hit save it says.. 

"You need to specify an account to credit the deposit to." Its already given me the balance due including the deposit deduction but won't let me go any further.  I don't need anything else. I just need to save the invoice to send later.

Thanks for joining this thread, 1142.

There may be accounts that weren't saved when creating the transaction reason why you're getting the error. Let's review the invoice transaction and make sure you enter the complete information.

If the error persists, I recommend performing some basic troubleshooting steps. Let's start by opening your QuickBooks account in incognito/private mode to check if it caused by a browser.

Here are the keyboard shortcuts to open a private browser: 

• Google Chrome: press Ctrl+Shift+N 
• Mozilla Firefox: press Ctrl+Shift+P 
• Internet Explorer: press Ctrl+Shift+P 
• Safari: press Command+Shift+N

If it works fine with a private browser, I suggest clearing your browser's cache to start fresh. Otherwise, try using other supported browser.

Keep in touch if there's anything I can help you with aside from this. I'm always around to provide further assistance.

Hi 

I am getting warning message 

you need to specify an account to credit  the deposit to

please answer ASAP 

[removed]

Hello there, @629786.

You need to select an account to get past this warning message and save the invoice successfully. Let me show you how: 

1. On the left pane, select + New. 
2. Under CUSTOMERS, click Invoice. 
3. Enter the transaction information, including the deposit amount. 
4. Click anywhere to view the Deposit to field.
5. Select the Deposit to drop-down and select an account.
6. Click Save and close. 

For additional reference, I've attached some links for options to receive and categorize customer payments in QuickBooks Online: 

• Record invoice payments

• How to let customers pay their invoices online

Let us know how I can help you further by clicking the Reply button below. Have a great day ahead. 

This does not work. 

Good Evening, @abrothers. 

Thanks for joining in on this thread. Since you've already tried the steps my colleague provided, then I recommend contacting our Customer Support Team. They have additional tools to help look further into your account to resolve these types of problems. Here's how: 

1. Go to the Help icon. 
2. Click the Contact Us button. 
3. Type in your question and press Let's Talk. 
4. Scroll down and choose to Get a callback. 

If you run into any trouble along the way, just let me know. I want to make sure that you get this issue resolved as soon as possible. Have a great day!

When you use the second solution mentioned above, does that work similarly to "recording a payment" from the invoice itself?  So let's say I have an invoice that's $7,000 for a job.  I require 1/2 upfront, 1/2 upon completion.  I can make the whole invoice, then go into the customer and input the $3500 credit as you described.  To my understanding, I would then go and record a bank deposit for that $3500 for whichever day I deposit the amount into my bank. Then when the remainder is paid, I could record the other $3500 payment as usual under the invoice, and again record a bank deposit for the appropriate day so that my bank records will match and I won't end up with double the income showing when I try to reconcile my account.

Hello there, @tricoteuse. 

Recording an upfront deposit only applies if your customer pays you before performing any services. In your case, you can create an estimate for the $7,000 and invoiced the half amount. Here's how:

1. Click the + New button, then select Estimate.
2. Select the customer or project (job) from the Customer drop-down.
3. Fill out the necessary information.
4. Hit Save.
5. Beside the Amount section, click Create invoice.
6. Select the second option (50% of each line = $3,500).
7. Click Create invoice.
8. Once you created the invoice, you can record the payment when you received it.

I'm adding this article for more details: Set up and use estimates.

Just in case you'll start reconciling your accounts, feel free to check out this article for the detailed steps and information: Reconcile an account in QuickBooks Online.

Please touch base with me here for all of your QuickBooks needs, I'm always happy to help. Have a great day.