We are a construction company and use projects to track all of our jobs. An invoice is created within the project with the total cost of construction. If I receive a payment against the invoice, it appears as though I don't need to record the deposit by clicking the other/bank deposit as it creates a double entry. What is the best way to record a deposit on projects?
Hi there, cmarty.
It's nice to see you in the Community again. I'm here to help share the best way to record a deposit on a project.
You can set up a deposit or retainer process when you invoice the customer and receive payment against it. First, you'll need to create a liability account to track the amount of the retainers you receive from your customers.
For more detailed steps in recording a retainer or deposit, please check this helpful article: How to record a retainer or deposit.
This article should help guide you in recording deposits against the invoice within a project.
As always, if you need more information about other QuickBooks related issues, you can always check out our helpful site: Help articles for QuickBooks Online.
Should you have additional questions about the process, please let me know. I'm always here to help. Have a great weekend.
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