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A
aliam
February 7, 2019
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Keeping a Clients deposit from deducting off an invoice

  • February 7, 2019
  • 2 replies
  • 0 views

Hi there

The situation is as follows, I take a payment from a new client and keep this until our contract ends, at which point they have their money returned to them. The problem I have is that because there is a positive balance on their account, when I produce an invoice QB automatically deducts the deposit from the 'total line'

How can get around this please? - Many thanks

    Best answer by

    There are 2 problems here:

    1 > your method of receiving deposits is creating 'open credits' in the customer account

    2 > you have QB set to 'automatically apply customer credits'

    solving either of these will fix the problem - I suggest you fix #1.

     

    You should receive the customer deposit by creating a 'sales receipt' and also creating a 'deposit' item to code to. The 'deposit item' should be a 'service' type item that links to a current liability account called 'customer deposits'.  Then there will never be an 'open credit' in the AR system. To refund the deposit just issue a check and code it to the customer deposits liability account.  

    2 replies

    T
    TaliaI
    February 7, 2019

    Hello aliam,

     

    Welcome to the Community - thank you for your question!

     

    Just to clarify - does the deposit automatically deduct from the total line when creating and invoice, or when receiving payment for the invoice?

     

    Thank you,

     

    Talia

    A
    aliamAuthor
    February 7, 2019

    Hi Talia - thanks for repling!

    It is when creating an invoice

    So the line total is correct, but then the amount payable at the bottom is the line total less the deposit.  - Thanks Again -  Ali

    JamesC
    JamesC
    February 7, 2019

    Hi Aliam,

     

    It might be worth deleting and leaving the Deposit section blank, for the purposes you are describing.

     

    Is the deposit amount equaling the total amount showing as a positive balance in your customers account? or is it a partial? I'm trying to replicate it and alas, so far i can't get my deposit box to autopopulate at all.

     

    Thanks,

     

     

    A
    Anonymous
    Answer
    February 7, 2019

    There are 2 problems here:

    1 > your method of receiving deposits is creating 'open credits' in the customer account

    2 > you have QB set to 'automatically apply customer credits'

    solving either of these will fix the problem - I suggest you fix #1.

     

    You should receive the customer deposit by creating a 'sales receipt' and also creating a 'deposit' item to code to. The 'deposit item' should be a 'service' type item that links to a current liability account called 'customer deposits'.  Then there will never be an 'open credit' in the AR system. To refund the deposit just issue a check and code it to the customer deposits liability account.  

      A
      aliamAuthor
      February 8, 2019

      Thanks Mike - this worked great I used #1

      Kudos!

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