Hello, How I can record the amount of money that the clients deposit in the company to pay their bills and services in behalf of them and how to record the payments?

Hi there, @accounting-aginv.

It's my utmost priority to help you with recording the deposit that you received from your client and apply it to their bills.

You'll need to deposit the amount that you've got from your client. This way, it will be displayed as a credit and can be applied to their bills.

To do that:

1. Click on +New button at the left pane.
2. Choose Bank deposit. 
3. Select the account where the money will be deposited. 
4. Refer to the Add funds to this deposit section.
5. Enter where the amount was coming from in the Receive From box., select the Account and key in the Amount.
6. Hit on Save. 

Once done, you can apply the existing credit to an open vendor transaction, use the Pay Bill feature.

Here’s how:

1. Go to the Plus icon and select Pay Bills.
2. Choose the vendor from the list.
3. Once selected, the vendor's existing credit populates on the Credit Applied column.
4. Hit Save and close to apply the credit to the vendor open balance.

You can also check out this link attached to give you more tips about managing vendor credits and on how to apply them: Applying vendor credits.

I got your back if you have any other questions with this or with QuickBooks. Just let me know in the comment section. Take care!

Hello,

Thanks for the useful information, but I still have some issues I will list it below:

1- when I make a deposit for example to the cash account and specify the customer, in the "Account" field which account I should use to show that there is a liability for the client

2- I made the expenses that I make on behalf of the client billable so I can make the invoice, but when I make the payment for the bill how can I show that the amount is deducted from the client's liability

Thanks in advance

I appreciate you getting back to us, @accounting-aginv.

You can set up a clearing account to deduct the amount from the client's liability. A Clearing Account is an account you use to move money from one account to another when you can't move the money directly. 

Here's how:

1. Click Accounting from the left panel, then select Chart of Accounts.
2. Select New.
3. Choose Bank for the Account Type. You may choose any detail type you want for your clearing account.
4. Type in the Name for the clearing account.
5. Make sure you do not type in any amount on the balance before clicking Save and Close.

Once done, you can now use the clearing account by creating a journal entry to move the deducted amount from the client's liability. However, I highly recommend seeking help with your accountant to know what accounts to use. Also, they can guide you on which account you'll use to show a liability for your client.

If you need some references in the future, you can always access our site: Help articles for QuickBooks Online.

Please keep in touch if there's anything else I can do to help you succeed with QuickBooks. I've got your back. Have a great day!