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bsv85
May 27, 2022
Question

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

  • May 27, 2022
  • 1 reply
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Advance Received from Customer - with GST - how do you pass the entry in QB. I am a Technical Consultant. My Client Has paid me an advance of Rs 5 Lacs. How do i account this with GST in QBO??

1 reply

K
Kurt_M
May 27, 2022

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:

 

 

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!

B
bsv85Author
May 27, 2022

Hi,

 

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

 

Thanks

 

Venkatesh BS

M
Mark_R
May 27, 2022

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.

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