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9twentycreative
Level 1

Advance payment from client

Hi 

when invoicing a client i would like to invoice them for a 50% advance. how do i do this in Quickbooks online ? if i were to link the estimate created , should i create a subtotal and then a line item that is linked to an income account with a title that says " Project advance " ? if so which income account would this have to be linked to ? 

16 Comments 16
Malcolm Ziman
Level 10

Advance payment from client

An Estimate is a non-posting transaction so there is no point in putting a line item for the deposit, except to let the customer know that a deposit is required, but I would do that as a note, and not adjust the total amount. When they send the deposit, one way to record it, is to create a Receive Payment which puts a credit on the customer's account.  You should only create the invoice later, when good or services are delivered, at which time the income is created (on the accrual basis), and also the previous credit is applied, if you have the setting to automatically apply credits.

Ondrej nistor
Level 1

Advance payment from client

Cant you give to my ani advance a

I want to open anj biznis

Charies_M
Moderator

Advance payment from client

Hi there, Ondrej nistor.

 

I'd love to help you achieve your goal but would you mind telling me about it? 

 

I would appreciate any details you can share to help me better understand your concern and provide an accurate solution.

 

I'll keep an eye out for your response. Any additional information will do. Take care and have a good one!

Ondrej nistor
Level 1

Advance payment from client

You cant give to mi advance

JasroV
QuickBooks Team

Advance payment from client

Thanks for getting back to us, @Ondrej nistor.


I want to ensure I provided you with the right information and help you achieve your goal. Can you share with me more details about it? Additional information can help us narrow it down.

 

In case you need help managing your QuickBooks Online (QBO) account, you can always check your Help articles page. Just browse a topic for QBO and read it for reference.


Looking forward to your reply. Keep safe.

George Michael
Level 2

Advance payment from client

I am wondering how I can collect a mobilisation advance and later recover it from various invoices.

AlexV
QuickBooks Team

Advance payment from client

Hello George Michael!

 

Thanks for posting here. Let me share details on how to track a mobilisation advance.

 

The first thing we need to do is to create a liability account to track the deposit or advance payment you receive from your customers. Then, let's set up a retainer item which we'll use in recording the transaction and the affected income account should be the liability account you created. It'll be converted into income once we apply the advance payment to the invoice.

 

You can check the detailed steps here: Record a retainer or deposit.

 

Keep on posting here if you need anything else. We'll respond as soon as we can.

slindsaycaudill
Level 1

Advance payment from client

This method mention above works perfectly when the client pays the retainer with a check.
The struggle comes in when I send a payment link for a client to pay a retainer. 

 

Let's use an example of a $50 retainer. The payment link automatically creates the journal entry of a $50 debit to undeposited funds, and a $50 credit to sales.  So then when I create a final invoice my invoice is now a $100 credit to sales, and a $100 debit to AR.    I should then add an item to the invoice to debit the "retainer account" but there isn't anything in the retainer for me to decrease the account.  What steps can be taken to make the payment link go to the "retainer account" rather than sales? 

RCV
QuickBooks Team
QuickBooks Team

Advance payment from client

Thanks for taking the time to scour our Community space for potential solutions, slindsaycaudill.

 

We'll need to create a retainer item so this item can now be selected when creating an invoice or cash memo for a deposit or retainer payment. Let me show you how: 

 

  1. Go to the Gear icon on the top menu. 
  2. Select Products and services.
  3. Tap New.
  4. From the Product/Service information panel, hit Service.
  5. Enter a name for the new product or service item (for example, Retainer).
  6. From the Income account dropdown menu, select the liability account created in Step 1.
  7. Press Save and close.

 

Then, invoice the customer for retainers to make the payment so that it will go to the "retainer account" you've set up. The steps below are similar to creating a Cash memo except that you won't select a Deposit To account until you receive payment against the invoice. Here's how: 

 

  1. Click the + New Plus icon. 
  2. Select Invoice.
  3. Tap the Customer name from the dropdown list.
  4. In the Product/Service column, select the Retainer or Deposit item you set up.
  5. Enter the amount received for the retainer or deposit in the Rate or Amount column.
  6. When you’re done, there are several options for saving or sharing the invoice:
    • If you're ready to send the invoice, select Save and send to email the invoice to your customer. 
    • To send the invoice later, select Save and close.
    • To print a paper invoice, select Save. Then select Print or preview
    • To send your customer a link to their invoice through SMS or a messenger service, select Save and share link. Then select Copy link and paste it into your SMS or messenger service.
    • To send your invoice using WhatsApp, select Save & Share (WhatsApp).

 

You can check out this article to learn more about creating an invoice: Create invoices in QuickBooks Online. Then, the Cash basis reports will not reflect deposit/retainer as received until the invoice is paid in full. Here's an article you can refer to for more detail about recording a retainer or deposit.

 

Feel free to visit these articles that will help you through tracking customer payments and how to manage customer funds before depositing them to your bank accounts:

 

 

If you have other concerns about receiving payments, please leave a comment here. I'm always around to assist. Take care, and more power to your business!

slindsaycaudill
Level 1

Advance payment from client

My problem isn't with a cash payment. It is when a client uses a PAYMENT LINK. 

When i create a payment link for a retainer, I can't select an item, it only allows me to enter a dollar amount.the subsequent journal entry hit sales and undeposited funds.

In this instance, I need it to hit "retainer account" and undeposited funds

 

ReymondO
QuickBooks Team

Advance payment from client

Good day, @slindsaycaudill.

 

Thanks for getting back to this thread. For me to better understand the concern, can you share with me a screenshot of the payment link you're referring to? 

This way, I can provide you with the right steps in resolving the issue. Any further info would be much appreciated. 

 

Please add your details in this thread and I'll get back to you. Have a good one. 

slindsaycaudill
Level 1

Advance payment from client

QB Payment link.png

slindsaycaudill
Level 1

Advance payment from client

The "what product or service is this for?" box, it does not matter what I put in the box, it always goes to the Sales account.

 

QB Payment link 2.png

Rubielyn_J
QuickBooks Team

Advance payment from client

I appreciate you for the screenshots you've shared, @slindsaycaudill. Let me chime in and clarify things for you.

 

You're right, whatever you put in the What product or service is this for? will not matter. 

 

The item used in the invoice for your client and the payment link to pay it will based on the income account you set up on the item. What we need to check is the item in your Product and Services section. There's a possibility that the item is set to a sales account.

 

Once confirmed that it's not the right account, we can change it if necessary so it will post as a retainer account. 



For more information, you may check out this article: Change the account for a product/service item.

 

I'm also adding this link to help you manage and track how much you make and spend on each product or service: Add product and service items to QuickBooks Online.

 

Fill me in if you have further concerns about creating and sending payment link to QuickBooks. I'm always around to help. Keep safe!

slindsaycaudill
Level 1

Advance payment from client

When clients use the link that is sent from the invoices, the journal entry posts correctly.
The trouble arises when clients are sent a payment link WITHOUT an invoice.  The sales receipt is auto created and it goes to sales.  I have no option to switch it to a retainer account.  Is this something that is easier to discuss in a phone call? 

DivinaMercy_N
Moderator

Advance payment from client

I want to ensure this will be taken care of, @slindsaycaudill.
 

In QuickBooks Online (QBO), recording retainers or deposits is a way to track advance payments of your customer. Since you're having trouble performing this process, you can reach out to our Customer Care team to ask for additional assistance. They can also advise on what other options you can take. Here's how:

 

  1. In your QBO account, navigate to the Help menu.
  2. Then, go to the Search tab and select Contact us.
  3. From there, enter a brief description of your concern and click Continue.
  4. Choose either the Chat or Call options to connect with a live support representative.

 

For additional reference in managing payments from your customer, feel free to visit this article: Record invoice payments in QuickBooks Online. 

 

Running sales reports to monitor your customer transactions as well as your business income is easy in QBO. To get started, simply go to the Reports menu and scroll down to the Sales and customers section. From there, select whichever report you want. 

 

Please let me know how the interaction with the support goes. If you have any other concerns about managing customer transactions, don't hesitate to add a reply below. I'm just around the corner and ready to lend a hand. Have a great day ahead and take care.