Was this page helpful?
Thank you!

Comments or suggestions?

Enter Email Address (optional)

Track customer deposits on sales orders or estimates

When creating a sales order or estimate sometimes it is necessary to receive a deposit before the invoice is made. It is necessary to track the deposit appropriately so that it shows on the sales order/estimate and on the financial reports.  For example, on the balance sheet.
By following these directions you get a professional looking transaction to give the customer, and the accounts are affected correctly for the non-posting and posting processes.
Detailed instructions
  1. Create a new Other Charge Item:
    1. From the Lists menu, select Item List.
    2. Click the Item button then select New.
    3. Choose Other Charge as the Type.
    4. In the Item Name/Number field, type Customer Deposit.
    5. In the Account field, select the account you use to track customer deposits.
  2. Create the Sales Order or Estimate with the appropriate items:
    1. From the Customer menu, select Create Sales Order or Estimate.
    2. In the Customer:job field, add the Customer name.
    3. Add the items for the Customer.
    4. The last item on the transaction is the Customer Deposit. This item is a negative amount that they have paid you. The description can include the date the deposit was made.
  3. Create a Deposit
    1. From the Banking menu, select Make Deposits.
    2. In the Received From field, enter the Customer Name.
    3. In the From Account, select the account used on the Customer Deposit Other Charge Item.
    4. Enter the amount.
    5. If other deposits are given, add them to the Sales Order or the Estimate using the description column for pertinent information.
  4. Create the Invoice.
    1. From the Customers menu, select Create Invoice.
    2. In the Customer:job field, add the Customer name.
    3. This should bring up the window to create the invoice from the sales order or the estimate. Choose to do this.
    4. Receive the payment and deposit appropriately.

Note: Generally the Other Charge item is linked to a Liability account as the money is received before the goods or services are given to the customer. Therefore the customer is owed something and the amount becomes a liability to the company. If you do not know which account to choose, please get advice from an accounting professional.

KB ID# HOW13254
4/30/2017 11:21:19 PM
QYPPRDQBKSWS05 9138 Pro 2017 fa791e