Upfront Deposit

I can help you handle upfront deposits, Angie13.

In QuickBooks Desktop (QBDT), you don't need to create an invoice when collecting the upfront deposit. Instead, make a sales receipt to give to your customer. I'll guide you on how to do it.

First, create a liability account to track customer retainers. Here's how:

1. Go to the Lists menu and select Chart of Accounts.
2. Click the Account drop-down arrow, then New.
3. Select the Other Account Types drop-down arrow, and choose  Other Current Liability.
4. Tap Continue.
5. Enter the account name.
6. Hit Save & Close.

Then, create an item to use when recording upfront deposits or retainers.

1. Go to the Lists menu and select Item List.
2. Click the Item drop-down arrow and New.
3. Select the purpose of the deposits you collect from the Type drop-down arrow.
4. Enter the name of the product.
5. Choose the Upfront Deposit liability account you created from the Account drop-down list.
6. Hit OK.

After that, create a sales receipt when you receive the money from a customer:

1. Go to the Customers menu and select Enter Sales Receipts.
2. From the Customer: Job drop-down menu, select the customer.
3. Enter the other information needed.
4. Select the upfront deposit item you created from the Item drop-down arrow.
5. Put the amount.
6. Hit Save and Close.

Once you need to apply the upfront deposits to invoices, the following are the two ways to do it:

• Enter the upfront deposit or retainer as a line item on the invoice
• Apply the upfront deposit or retainer as a credit

You can check this article and proceed to Step 5 for the detailed instructions: Manage Upfront Deposits or Retainers.

I'm also including these guides on how to update the retainer's account:

• Add, Edit, or Delete Accounts
• Add, Edit, and Delete Items

Please come back if you need further assistance in handling upfront deposits. It's our priority to ensure everything is correct.