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JamesWoodcock
November 26, 2023
Question

forfeit Deposit

  • November 26, 2023
  • 1 reply
  • 0 views

Within the business a customer secures a booking by paying a deposit of £50. This is set up within QB as a current liability and is listed against the customer within the Deposit report. If the customer cancels the booking at short notice this £50 is forfeited. What transaction do I do within Quickbooks to reflect this. I want to ideally do a contra on the current liability deposit report specifically against the customer so when I look at that customer in the report at a later date it shows £0 deposit. (£50/-£50).The other side should be credited to income. Any advice as to the transactions necessary would be appreciated. Thank you

1 reply

Bryan_M
Bryan_M
November 26, 2023

I appreciate you for posting here, James.

 

I understand how important it is to zero out the amount of the canceled booking of your customer so it will show in the report correctly. Allow me to help you create the correct transaction to contra its balance.

 

To show a £0 deposit in the report to the canceled booking, we can create a refund transaction to contra the £50. Here's how:

 

  1. Click the + New.
  2. Choose Refund receipt.
  3. Tap the Customer ▼ dropdown, then select the customer who canceled the booking.
  4. Select the Refund From ▼ dropdown, then choose the bank you deposited the £50 payment for the invoice (or a sales receipt).
  5. Add all products or services the customer canceled in the Product/Service column.
  6. Fill in the Date, Qty, Rate, Amount, VAT, and other fields accordingly, then select Save and close.

 

For additional info, check out this article: Record a customer refund in QuickBooks Online.

 

Moreover, I also recommend reaching out to an accountant to help you place the transactions in their correct accounts.

 

If you want to match your bank and credit card transactions, you can read this article: Reconcile an account in QuickBooks Online.

 

We're 24/7 available here if you have additional questions about deposits. I'll be willing to lend a hand. Thank you and have a good day.

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