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Recording an upfront deposit or retainer as a liability

An upfront deposit or retainer is a liability on your books even though you deposit the funds into your bank account. You should not record it as income when you get it.

To do this task

  1. Go to the Customers menu and click Enter Sales Receipts.

  2. Click the Customer:Job drop-down list and choose the customer and the job name (if applicable).

  3. In the Date field, enter the date you deposited the funds.

  4. Click the Payment Method drop-down list and choose a payment method.

  5. In the Item field, click the drop-down list and choose Retainer or Upfront Deposit.

    If necessary, create the item now. This item should be linked to an Other Current Liability account.

  6. Enter the deposit amount in the Amount column.

  7. To include a message on the customer receipt, click the Customer Message drop-down list and choose a message, or click Add New to create a new message.

    You can also customize the Sales Receipt form by changing the title to Upfront Deposit to make it clear to the customer what the receipt is for.

  8. Click Print or Email to create a receipt for your customer.

  9. If the Deposit To field is displayed at the bottom of the form, select the Checking or Savings account in which you want to put the funds.

    Note: If your Sales & Customers preferences are set to "Use Undeposited Funds as a default deposit to account,", your deposit will automatically be added to your Undeposited Funds account and you will not see this option.

  10. Click Save & Close to record the deposit.

See also

11/23/2017 10:36:32 AM
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