Hi Philippa1,
Let me share with you some information about invoice and quote in QuickBooks Online.
In the scenario you've shared above, we can record the deposit as a retainer. The retainer or deposit is treated as a liability to show that, although your business is holding the money from a deposit or retainer, it doesn't belong to you until it's used to pay for services. When you invoice the customer and receive payment against it, you'll turn that liability into income.
For more detailed information, you can check on this article: Record a retainer or deposit.
Let me know if you have any other questions by leaving a comment below. Have a nice day!
