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aliam
Feb 7, 2019 5:14 PM UTC
Solved

Keeping a Clients deposit from deducting off an invoice

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

    Answer
    Feb 7, 2019 7:16 PM UTC

    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.  

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    7 replies

    TaliaI
    Feb 7, 2019 5:52 PM UTC

    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

    aliamAuthor
    Feb 7, 2019 5:55 PM UTC

    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
    Feb 7, 2019 6:18 PM UTC

    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,

     

     

    Anonymous
    Answer
    Feb 7, 2019 7:16 PM UTC

    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.  

      aliamAuthor
      Feb 8, 2019 11:48 AM UTC

      Thanks Mike - this worked great I used #1

      Kudos!

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