Q & A with Will English
Showing Deposits Received in QuickBooks Enterprise Solutions
Question from one of our clients who uses the Enterprise Solutions accounting software:
We have a customer that paid a deposit in advance of receiving products.
The funds were received in June in our old system.
We will invoice for the products this month in our new system.
How can I best show this deposit received? Do I set up an invoice with beginning balance? In short, I want to issue a new invoice for the total amount and then show the balance reduced by funds already received.
Will’s answer: Create another charge item called Customer Deposits.
Point it at whatever account you are using for customer deposits.
Create the invoice using that item and discount it to the opening balance equity. Then, on the new invoice, use the same item but minus it on that invoice. It will remove the customer deposit liability and reduce the invoice.
