My client cancelled their wedding. How do I deal with that in my accounting? They have paid a non-refundable deposit. Do I Void the invoice or Cancel it? What do I do?

Hello, @smile5.

Since your invoice is non-refundable, we can delete or void the invoice if you haven't applied the deposit to the invoice yet. With this, we can edit the account affected by Accounts receivable so that it'll show as a credit to your customer, which you can utilize for your future invoice.

On the other hand, if you put the deposit to your invoice, we can create a credit memo or unlink it. Once you unlink it, the deposit will become an unapplied payment, which you can use to apply for future invoices.

Here's how to create a credit memo:

1. Go to the Credit Memo.
2. Select a Customer, then filter the rest of the field.
3. Click Save.

You can follow these steps to unlink the deposit from your invoice:

1. Open the Invoice transaction.
2. Delete the amount in the Deposit field.
3. Click Save.

Moreover, you can put the amount into a trust liability account if your customer wants to apply the deposit to another wedding date or event. You can use this method if you're recording money that doesn't belong to you yet unless used to pay for the services you provided. We can do this by recording a retainer or deposit. 

Please let us know if you have further concerns about your invoice or any QuickBooks-related queries. It's always our pleasure to help you. Keep safe.