Banking

Hello danvers,

Thanks for the additional information. In QuickBooks Online, the options we can take is either add a new line item on the invoice or record an invoice pre-payment or deposit as a bank deposit and allocate it to an Accounts receivable. By doing so, when you create an invoice it would be easier for you to apply the pre-payments. 

Here's how to enter the pre-payments: 

1. Select the + New button and then select Bank deposit. 
2. Select the Bank Account the money is received into and the Payment Date.
3. Scroll down to the Add funds to this deposit section, enter information like Received from: select customer name, Account: Accounts Receivable, Amount: Enter the amount paid by the customer.
4. Click Save and close.

Once you've recorded an invoice and are ready to apply the invoice pre-payment, you can follow these steps. 

1. Open the invoice.
2. In the top right-hand corner, click Receive payment.
3. In the Outstanding Transactions section, tick/select the invoice/s you want to associate with the prepayments.
4. In the Credits section, tick/select the relevant payment created.
5. If there is a balance due, you can pay the remainder by editing the payment amount against the invoice. If you don't want to pay the remaining amount, edit the Amount figure above the right-hand side of the Outstanding Transactions section.
6. Click Save and close.

As always, we recommend you consult your accountant to see if they have a preferred method of recording these transactions in QuickBooks Online. 

Drop a comment below if you need more help with QuickBooks. Enjoy the rest of the day!