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info@nordenseal.
January 17, 2022
Question

Deposit payments

  • January 17, 2022
  • 1 reply
  • 0 views

Quick question: When the sale contract is signed we usually request a deposit payment. Let's say, sale contract has been done for a $1000 and a deposit should be done $200. How do I request a deposit payment from a client and how should I register it in QB online? I used to issue invoice to the customer for a deposit payment only and later when the full service is complete, I issued final invoice with remaining balance, but my accountant said I should issue invoice for the service complete and not for a deposit. I will appreciate your suggestion. Thank you

1 reply

N
Nick K
January 17, 2022

Hi info@nordenseal.

 

Being able to track a partial payment towards an invoice is a great way to keep up to date on amounts your clients have paid. I'd be happy to help you with getting this entered in your QuickBooks Online.

 

The best way to enter a deposit towards an invoice would be to enter it in as a partial payment. This way it removes the deposit amount from the total invoice and allows you to send an updated amount owing to your clients at the end. To add a partial payment in QuickBooks Online you just need to follow these steps: 
 

  1. Select + New.
  2. Select Receive payment.
  3. From the Customer dropdown, select the name of the customer.
  4. From the Payment method dropdown, select the payment method.
  5. From the Deposit to dropdown, select the account you put the payment into. Tip: You can put the money directly into an account, like your chequing account, or select Undeposited Funds if you need to group the payment with others.
  6. In the Amount received field, enter the amount your customer paid.
  7. In the Outstanding Transactions section, select the checkbox for the invoice you're recording the payment for.
  8. Enter the Reference no. and Memo if needed. This is optional.
  9. When you're done, select Save and close.

If you have any questions let us know and we'd be happy to help.

I
info@nordenseal.Author
January 18, 2022

Thank you Nick for the response. So, my question is can I accept the deposit payment with no invoice created on customer? How could I also send a request for a deposit to be paid to the customer?

Jen_D
Jen_D
January 18, 2022

Hello there, @info@nordenseal.

 

If there is no invoice created yet for a customer, the way you record it in QuickBooks is through a retainer deposit. Using this method, you can apply it as a payment at a later time. Here are the steps to do that:

 

Step 1: Create a trust liability bank account: (optional)

 

  1. Go to the Gear Icon then pick Chart of Accounts.
  2. At the top of the screen, click New.
  3. Use Bank Account for the Category Type.
  4. Select Trust account under Detail Type.
  5. Enter the name you want. Example: Trust Liability Bank Account, or leave the account name as is.

 

Step 2: Create a trust liability account:

 

  1. Choose the Gear Icon then Chart of Accounts.
  2. At the top, press New.
  3. Select Other Current Liabilities under Catergory Type.
  4. Use Trust Accounts – Liabilities under Detail Type.
  5. Enter the name you want the hit Save.

 

Step 3: Create a product or service item that uses the trust liability account

 

  1. Tap the Gear Icon then Products and Services.
  2. Click the New button.
  3. In the Name field, enter a description for the product or service item. Example: Retainer.
  4. Click the Income Account drop-down and select a Trust Liability account.
  5. Press Save.

 

To get more information about this, see this article: Record a retainer or deposit

 

If you want to charge a customer online, you may sign up for QuickBooks payments. Then you can visit the Merchant Service Center page, to charge a card without an invoice. Then you can follow the steps above to record the payment in QuickBooks.

 

If you need further help with applying payments in QBO, please let me know in the comment below. I'll be right here to share some more information about QuickBooks tasks. Have a nice day!

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