Skip to main content
D
Diane18
December 16, 2019
Question

How to record a deposit to a 3rd party contractor

  • December 16, 2019
  • 1 reply
  • 0 views

We are an Engineering company who uses contractors for certain jobs.  Then we invoice our clients which includes the bills from our contractors.  Sometimes the contractors ask us for a deposit, so we pay the upfront deposit for our client.  Normally, if we ask our client for an upfront deposit I create a Sales Receipt and post it to a short term liability account and then subtract it on their invoice.  But how do I record an upfront deposit that we paid for the client?

1 reply

L
LauraAB
December 16, 2019

I love that you have so many questions, Diane18!

 

With each one, you learn something new and I'm certain you're well on your way to being a pro. It sounds like you've got recording your upfront deposit from the client side down pat, but feel free to take a look at the following article to learn more about how it's done in QuickBooks Desktop and the options available to you: Manage upfront deposits and retainers

 

When it comes to recording a vendor deposit, I have another article that can help out. Check out the options available in the Record a supplier prepayments or deposits for prepaid parts or services article to learn how it's done.

 

Because of the situation, it may be worth touching base with an accountant to make sure everything is going into the books correctly. This should get you on your way, though.

 

I hope that helps! Until next time. :)

Terms & ConditionsAccessibility statement