How to properly record payments made in advance
My wife has started an Interior design business. She receives payments in advance to purchasing the furniture etc. How do I record this as there is no invoice at that point to apply against.
My wife has started an Interior design business. She receives payments in advance to purchasing the furniture etc. How do I record this as there is no invoice at that point to apply against.
Hello, @ADSBro.
I can share some information that can help you with recording payments made in advance.
You can record it in QuickBooks Desktop as upfront deposits or retainers. Then, you can apply this deposit to your invoices.
To create a liability account:
To create an upfront deposit item:
Here's how to record upfront deposits or retainers you receive:
For detailed guidance with setting up, recording, and managing upfront deposits, check out this article: Manage upfront deposits or retainers.
See this article on how to receive payments you receive from your customers in QuickBooks Desktop: Record an invoice payment.
Let me know if you have further questions about recording payments made in advance. I'm always here to help. Have a great rest of the day!
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