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psellick8
April 10, 2022
Question

How do you best record deposits?

  • April 10, 2022
  • 1 reply
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I run a plumbing and heating company, Im currently booking a few months ahead for bathrooms. Im taking deposits from customers, of 50% of the bathroom suite, this saves the date in the diary and also puts the order into action with the merchants. However about a month before the job, I ask for the other 50% of the bathroom suite materials to pay it off with the merchant and confirm delivery. This means 100% of the bathroom suite is paid off, but how best do i do this? Ive just gone to request the second 50% via an invoice but it doesnt show that the first 50% has already been paid.

1 reply

S
ShiellaGraceA
April 10, 2022

Hello, @psellick8.

 

I'll share some information about recording customer payments. You can create a retainer or deposit in QuickBooks. This is how you record customer transactions before performing any services, and when it's time to invoice your customer you'll use the retainer to pay it. Let me guide you how.

 

  1. Create a liability account.
  2. Create a retainer item.
  3. Create a trust liability bank account (not always needed).
  4. Create an invoice for deposits or retainers.
  5. Turn retainers into credits on invoices.
  6. Transfer funds from your trust liability account into your operating account.

 

For details about the steps, please refer to this article: Record a retainer or deposit.

 

Once you're done recording, you can pull up the Balance Sheet report to track the deposits or retainers of your customer. Just go to Reports and then enter Balance Sheet from the search field.

 

I'm also attaching our help page in case you need help with other customer-related tasks. It has our general customer topics with articles: Topics about your company's income and customers.

 

Please let me know if you need help with there's anything else or with customer payments. I'm more than happy to assist you. Take care and have a good one.

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