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Cruise
Apr 25, 2018 9:05 PM UTC
Solved

Customer making an advance payment

We have received an advance from a customer with no specific Invoice raised yet. How do we post this as a receipt without it showing in the Profit and Loss ? 

JamesDuanTAnswer
Apr 26, 2018 6:01 AM UTC

Welcome to QB Community, Cruise.

 

We can record the customer's advance payment as a bank deposit. Then, we'll make sure Accounts Receivable (A/R) is the affected account.

 

1. At the top, click the Create menu (+) and select Bank Deposit.

2. Enter your desired bank account in the Account field.

3. Go to the Add funds to this deposit section.

4. In the RECEIVE FROM column, enter the customer's name.

5. In the ACCOUNT column, enter Accounts Receivable (A/R) or Debtors.

6. In the AMOUNT column, enter the received amount.

7. Click Save and close.

 

Your Profit and Loss report won't display the amount because it's not an income yet. Though, it is in your Balance Sheet report since Accounts Receivable (A/R) is one of the Asset accounts.

 

You can also use this article to set up an upfront deposit:

 

How do I record a retainer or deposit?

 

Let me know if you have other concerns.

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3 replies

JamesDuanTAnswer
Apr 26, 2018 6:01 AM UTC

Welcome to QB Community, Cruise.

 

We can record the customer's advance payment as a bank deposit. Then, we'll make sure Accounts Receivable (A/R) is the affected account.

 

1. At the top, click the Create menu (+) and select Bank Deposit.

2. Enter your desired bank account in the Account field.

3. Go to the Add funds to this deposit section.

4. In the RECEIVE FROM column, enter the customer's name.

5. In the ACCOUNT column, enter Accounts Receivable (A/R) or Debtors.

6. In the AMOUNT column, enter the received amount.

7. Click Save and close.

 

Your Profit and Loss report won't display the amount because it's not an income yet. Though, it is in your Balance Sheet report since Accounts Receivable (A/R) is one of the Asset accounts.

 

You can also use this article to set up an upfront deposit:

 

How do I record a retainer or deposit?

 

Let me know if you have other concerns.

AcctMgrSue
Jul 10, 2018 5:44 PM UTC

By using the process below, will the advanced payment show up on the Customer's account profile and then be negated when the actual invoice is created after shipment?

Thanks!

 

AlcaeusF
AlcaeusF
Jul 10, 2018 10:37 PM UTC

Greetings, AcctMgrSue.

 

Welcome to the QuickBooks Community. I'd like share some information with you.

 

To add up with what JamesDuanT stated, bank deposit transactions are displayed on the Bank register page. You can only see it under the customer's transaction list if the affected account is Accounts Receivable (A/R) or Debtors.

 

If you want to see the list transaction types available under the customer's profile, follow these steps:

 

1. On the left navigation bar, click Sales.

2. Go to the Customers tab.

3. Click the customer's name.

4. Go to the Transaction List tab.

5. Click Filter.

6. Click Type to show the list of transactions.

 

For more information about creating a bank deposit, you can visit the article I've attached down below:

 

Bank deposits.

 

We're here anytime you need help with QuickBooks Online. Wishing you all the best.

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