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Level 1

deposits made toward work

we are a painting contractor and we take deposits prior to the work being done. I just ran a profit and loss for a previous month and some deposits were made during that month yet the job didn't complete till september and beyond.  so all these deposits were UNAPPLIED CASH PAYMENT INCOME, but when i change the receive date to when the job was done and paid it cleared that money out of the UCPI.....how can I receive deposits and not have this happen everytime? 

2 Comments
Level 15

deposits made toward work

You need to Control this: "how can I receive deposits and not have this happen everytime"

 

If you are a cash basis reporting entity, that is Income. Use a prepayment service or other charge item for that. If you are an Accrual Basis entity, that is a Liability, so link your charge item to Liability or Income, to meet your accounting needs.

 

When someone gives a Prepayment deposit, use Sales Receipt with that prepayment item.

 

When you are done, you charge them on an Invoice. Use that prepayment item on a Credit Memo for the date of the invoice, with the amount they prepaid, to apply it to reduce the total owed, the Balance Due, on the invoice. This reflects that you applied their prepayment to the Total sale.

Level 1

deposits made toward work

Thank you very much,.

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