Deposits taken as pre-paymnt for invoices before created, were recorded as a sale. invoice created in later reporting qtr - deposit info on inv noted now QBbank a/c out.

Hi cat.taylor290,

You can record an invoice pre-payment as a bank deposit and allocate it to an Accounts receivable. Doing so, when you create an invoice it would be easier for you to apply the pre-payments. 

Here's how to enter the pre-payments: 

1. Select the + New button and then select Bank deposit. 
2. Select the Bank Account the money is received in to, and the Payment Date.
3. Scroll down to the Add funds to this deposit section, enter information as follows:
   • Received from: select customer name
   • Account:  Accounts Receivable
   • Amount:  Enter amount paid by the customer.
4. Click Save and close.

Once you've recorded an invoice and ready to apply the invoice pre-payment, you can follow these steps. 

1. Open the invoice.
2. In the top right-hand corner, click Receive payment.
3. In Outstanding Transactions section, tick/select the invoice/s you want to associate with the prepayments.
4. In the Credits section, tick/select the relevant payment created.
5. If there is a balance due, you can pay the pay the remainder by editing the payment amount against the invoice. If you don't want to pay the remaining amount, edit the Amount figure above the right-hand side of the Outstanding Transactions section.
6. Click Save and close.

As always, you can consult your accountant to see if they have a preferred method of recording these transactions in QuickBooks Online. 

Feel free to drop a comment below if you need further assistance. Have a great day!