This is a quick blog post describing how to account for customer deposits in QuickBooks. I have also made a YouTube video showing step by step instructions, followed by a example of accepting a customer deposit and later on invoicing that same customer.
Instructions for accepting a customer deposit
- Set up a new “Other Current Liabilities” account in your company file’s chart of accounts called “Customer Deposits.”
- Create a new product/service item in your item list called “Customer Deposit,” the income account associated with this item will be the Other current liability account we created in step 1.
- Accept a deposit from the customer or client using the Sales Receipt option under your customer center.
- Continue to filling out the sales receipt as usual and when choosing an item, choose the Customer Deposit item and input the amount of the deposit.
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