Advance Received from Customer - with GST - how do you pass the entry in QB

Hello there, @bsv85. I can help you record an advance payment in QuickBooks Online (QBO).

You'll want to record the advance payment made by your customer and leave it as a credit. This way, it can be recorded accurately when you need it. Here, how:

1.     Select + New.
2.     Select Credit note.
3.     Select the Customer name from the dropdown.
4.     In the Product/Service column, select the item.
5.     Enter the amount received for the retainer or deposit in the Rate or Amount column.
6.     Select the GST rate in the TAX column.
7.     Select Save and close.

This stay as an available credit. when you've rendered the service to your customer, you'll then create an invoice to apply the available credit.

Feel free to visit this article to learn more about how you can apply a credit to an open invoice in QuickBooks Online: Create and apply credit.

Another option is to create a deposit, and add the GST in the cash memo or invoice.

In addition, I've got you these articles in case you'd like to create personalized sales form and run a report that shows your open invoices in QBO:

• Customise invoices, estimates, and sales receipts in QuickBooks Online.
• Customise reports in QuickBooks Online.

Don't hesitate to post here again if you have any additional QuickBooks-related concerns. You can always count on us here in the Community, and we are always ready to help you get those concerns resolved. Keep safe, and have a great weekend!

Hi,

Could we add GST Tax Component to the advance receipts...

Thanks

Venkatesh BS

Welcome back, @bsv85.

Yes, you can add GST tax to the advance receipts by creating a credit note. I'd be happy to guide you through the process.

A credit note won't only allow you to record a customer's credit but also be used to record customer advanced payments, especially when you're adding a GST tax. To enter a credit note, you can follow the steps below:

1. Sign in to your QuickBooks Online (QBO) account.
2. Click the Gear icon, then select Credit note.
3. Fill out the necessary information, then select the GST tax from the Tax drop-down.
4. Once done, click Save and close.

Here's an article you can read for more details: Create and apply credit notes or delayed credits in QuickBooks Online.

You may want to view all your sales transactions in the future. You can go to the Sales menu and select All Sales. This will gives you a great view of the status of sales transactions, open invoices, and paid invoices. 

Our doors are always open to help you again if you have any other concerns or follow-up questions. Have a pleasant day ahead, @bsv85.

Hi @Mark_R 

Please give me a step by step guide to account amount received as advance from customer through credit note with GST.

Thq Venkatesh BS

I appreciate your prompt reply, @bsv85.

I see that you've posted a similar concern and my colleague already provided you the step-by-step guide to account the amount you received as advance from customer though a credit note with GST.

If you haven't been notified of the said response, you can check it out here.

Also, you may want to check out this article if you wish to know the things that you will be able to do with QuickBooks GST solution: QuickBooks for GST.

If there's anything else that you need help with, you can always get back to the Community so we can assist you further. Take care, and have a great day, @bsv85.