Customer paid inv with refundable deposit as one of products. later, refundable deposit is used to pay new invoice. How to record this?

Welcome to the Community @sribintangeducat.

I'm here to help link a deposit to an invoice in QuickBooks Online (QBO). 

When you create deposits from your customer, you’ll want to make sure you’ve selected the Accounts Receivable account. This way, you can link the transactions successfully in QBO.

Here’s how:

1. Go to the Accounting menu, then click Chart of Accounts.
2. Find the account you deposited the payment to and tap View register.
3. Locate and select the correct deposit, then press Edit.
4. In the Add funds to this deposit section, find the deposit and ensure the account selected in the dropdown is Accounts Receivable.
5. Select Save and close.

Once done, you can now apply for the deposit entry as an invoice payment. I’m glad to show you the steps.

1. Tap + New button, then choose Receive Payment.
2. Select the customer from the ▼ dropdown. This displays all open invoices and outstanding credits for your customer.
3. In the Payment date field, enter the day you received the payment.
4. In the Outstanding Transactions section, click the invoice you need to mark as paid.
5. Under Credits, select the deposit.
6. Press Save and close.

Moreover, you can use this information to reconcile your account in QuickBooks. This confirms that the company’s financial records correspond to the amount that has been spent and both are balanced at the end of the reporting period.

Additionally, here are some helpful resources about finding a match in QuickBooks:

• Tips for Matching Transactions
• Categorize and Match Online Bank Transactions

If you need further assistance with managing your transactions, please don’t hesitate to let us know. We’re always here to help. Take care!