Discussion:
How to receive customer deposit - invoice later
(too old to reply)
Frank
2004-07-28 20:29:29 UTC
Permalink
Can someone please tell me how to create an invoice for a customer deposit?
Then what do I do when the deposit arrives? I don't want the invoice to hit
the books until the final sale is made when the product is delivered.

TIA.


Frank Hughes
BSN
Joanne
2004-07-28 20:50:50 UTC
Permalink
Post by Frank
Can someone please tell me how to create an invoice for a customer deposit?
Then what do I do when the deposit arrives? I don't want the invoice to hit
the books until the final sale is made when the product is delivered.
TIA.
Frank Hughes
BSN
When I receive a deposit in advance of invoicing, depending upon the
circumstances, I do one of the following:

1. Make a deposit, from the customer's name, crediting "refundable
deposits" - a liability account

or

2. Receive a payment resulting in a credit balance to the customer's
"accounts receivable" account.

#1 is probably the correct way to do this, with a journal entry after the
invoice is created moving the funds from "refundable deposits" to "accounts
receivable".

#2 is kind of a quick and dirty way to avoid the journal entry step. I
would always use #1 if the invoice will not be created until after the
accounting period ends so that the assets and liabilities are honest.
--
Sincerely,
Joanne

If it's right for you, then it's right, . . . . . for you!!!

Play - http://www.jobird.com
Pay for Play - http://www.jobird.com/refund.htm
Looking for Love? - http://www.jobird.com/hearts.htm
Garden Kinder CDs
http://www.jobird.com/cd/gardenkinderhome.html
Frank
2004-07-28 21:05:21 UTC
Permalink
That's how I'm doing it now, but I need to send to a bill (or invoice) for
the deposit. Maybe an example will make it more clear:

1. Client orders a computer for $10,000.
2. I need to create a bill to give the client to collect the $5000 deposit.
3. Customer pays $5000.
4. Computer is delivered.
5. Invoice client for the remaining $5000.

Hopefully that helps, but let me know if I'm still talkin crazy....

Frank Hughes
BSN
Post by Frank
Post by Frank
Can someone please tell me how to create an invoice for a customer
deposit?
Post by Frank
Then what do I do when the deposit arrives? I don't want the invoice to
hit
Post by Frank
the books until the final sale is made when the product is delivered.
TIA.
Frank Hughes
BSN
When I receive a deposit in advance of invoicing, depending upon the
1. Make a deposit, from the customer's name, crediting "refundable
deposits" - a liability account
or
2. Receive a payment resulting in a credit balance to the customer's
"accounts receivable" account.
#1 is probably the correct way to do this, with a journal entry after the
invoice is created moving the funds from "refundable deposits" to "accounts
receivable".
#2 is kind of a quick and dirty way to avoid the journal entry step. I
would always use #1 if the invoice will not be created until after the
accounting period ends so that the assets and liabilities are honest.
--
Sincerely,
Joanne
If it's right for you, then it's right, . . . . . for you!!!
Play - http://www.jobird.com
Pay for Play - http://www.jobird.com/refund.htm
Looking for Love? - http://www.jobird.com/hearts.htm
Garden Kinder CDs
http://www.jobird.com/cd/gardenkinderhome.html
Tee
2004-07-28 22:03:26 UTC
Permalink
What you need is a sales order and that's something QB doesn't do in
non-specialty versions. I have no idea why because its a PITA and *should*
be there but....

You can create the invoice, receive the deposit against it (although do so
in the invoice window with a deposit line item so it shows the correct
balance) and print. Then mark the invoice as Pending which will make it
non-posting and it won't show up on your A/R. Or just leave it in your A/R
with an extended due date to reflect the date you actually expect to receive
the remaining balance.
--
Tara
Joanne
2004-07-29 14:43:59 UTC
Permalink
How about creating an invoice for the deposit using an item called "Deposit
to Order" (make up your own) and have it credit the liability account
"customer deposits"?

When you invoice the computer, create a new invoice for the full amount of
the computer.
Next line on the invoice is for "Deposit to Order" again with a negative
for the initial amount.

The invoice balance will be the difference. You will have been able to send
the customer two invoices. Each entry will be appropriately dated. No
journal entry will be needed. I'm thinking out loud and haven't tried it
for you. See if you like it or if it works the way I'm expecting and gives
you the invoice results you want.
--
Sincerely,
Joanne

If it's right for you, then it's right, . . . . . for you!!!

Play - http://www.jobird.com
Pay for Play - http://www.jobird.com/refund.htm
Looking for Love? - http://www.jobird.com/hearts.htm
Garden Kinder CDs
http://www.jobird.com/cd/gardenkinderhome.html
Post by Frank
That's how I'm doing it now, but I need to send to a bill (or invoice) for
1. Client orders a computer for $10,000.
2. I need to create a bill to give the client to collect the $5000 deposit.
3. Customer pays $5000.
4. Computer is delivered.
5. Invoice client for the remaining $5000.
Hopefully that helps, but let me know if I'm still talkin crazy....
Frank Hughes
BSN
Post by Frank
Post by Frank
Can someone please tell me how to create an invoice for a customer
deposit?
Post by Frank
Then what do I do when the deposit arrives? I don't want the invoice to
hit
Post by Frank
the books until the final sale is made when the product is delivered.
TIA.
Frank Hughes
BSN
When I receive a deposit in advance of invoicing, depending upon the
1. Make a deposit, from the customer's name, crediting "refundable
deposits" - a liability account
or
2. Receive a payment resulting in a credit balance to the customer's
"accounts receivable" account.
#1 is probably the correct way to do this, with a journal entry after the
invoice is created moving the funds from "refundable deposits" to
"accounts
Post by Frank
receivable".
#2 is kind of a quick and dirty way to avoid the journal entry step. I
would always use #1 if the invoice will not be created until after the
accounting period ends so that the assets and liabilities are honest.
--
Sincerely,
Joanne
If it's right for you, then it's right, . . . . . for you!!!
Play - http://www.jobird.com
Pay for Play - http://www.jobird.com/refund.htm
Looking for Love? - http://www.jobird.com/hearts.htm
Garden Kinder CDs
http://www.jobird.com/cd/gardenkinderhome.html
S.M. Serba
2004-07-29 20:28:45 UTC
Permalink
See previous post re: invoicing for deposits.

When billing for remainder:

Create new bill. Bill for full amount of item. List each separately if your
habit is to do so.

AT THE END OF THE BILL: invoice for the REVERSE amount of the deposit
already received using the "Deposits" item. EG:

Original bill

Deposits $5,000.00 NO TAX GL: Customer Deposits

NOTE: NO TAX


Completion of delivery:

Computer: $10,000.00 TAX GL: COGS
Deposits: -$5,000.00 NO TAX GL: Customer Deposits

TAX (assume 8%)
$800.00


Due: $5,800.00


This method records the deposit against the final bill as a liability. Then,
when the goods are delivered, it invoices for the full amount of the goods,
all applicable taxes on the goods, and applies the deposit previously
received.

Hope this helps.
--
Stephanie Serba, AICIA
Partner, Durham Business Outsource
Accounting & Technology
www.dbo.ca
Post by Frank
That's how I'm doing it now, but I need to send to a bill (or invoice) for
1. Client orders a computer for $10,000.
2. I need to create a bill to give the client to collect the $5000 deposit.
3. Customer pays $5000.
4. Computer is delivered.
5. Invoice client for the remaining $5000.
Hopefully that helps, but let me know if I'm still talkin crazy....
Frank Hughes
BSN
Post by Frank
Post by Frank
Can someone please tell me how to create an invoice for a customer
deposit?
Post by Frank
Then what do I do when the deposit arrives? I don't want the invoice to
hit
Post by Frank
the books until the final sale is made when the product is delivered.
TIA.
Frank Hughes
BSN
When I receive a deposit in advance of invoicing, depending upon the
1. Make a deposit, from the customer's name, crediting "refundable
deposits" - a liability account
or
2. Receive a payment resulting in a credit balance to the customer's
"accounts receivable" account.
#1 is probably the correct way to do this, with a journal entry after the
invoice is created moving the funds from "refundable deposits" to
"accounts
Post by Frank
receivable".
#2 is kind of a quick and dirty way to avoid the journal entry step. I
would always use #1 if the invoice will not be created until after the
accounting period ends so that the assets and liabilities are honest.
--
Sincerely,
Joanne
If it's right for you, then it's right, . . . . . for you!!!
Play - http://www.jobird.com
Pay for Play - http://www.jobird.com/refund.htm
Looking for Love? - http://www.jobird.com/hearts.htm
Garden Kinder CDs
http://www.jobird.com/cd/gardenkinderhome.html
N Owen
2004-07-30 10:32:13 UTC
Permalink
I know that you know better - I have the "momentary lapses" sometimes, too.
But the GL account on the "completion of delivery" invoice for the computer
s/b a SALES/Income acct, not COGS.

N Owen
To reply, please change "ONE" to numeral
Post by S.M. Serba
See previous post re: invoicing for deposits.
Create new bill. Bill for full amount of item. List each separately if your
habit is to do so.
AT THE END OF THE BILL: invoice for the REVERSE amount of the deposit
Original bill
Deposits $5,000.00 NO TAX GL: Customer Deposits
NOTE: NO TAX
Computer: $10,000.00 TAX GL: COGS
Deposits: -$5,000.00 NO TAX GL: Customer Deposits
TAX (assume 8%)
$800.00
Due: $5,800.00
This method records the deposit against the final bill as a liability. Then,
when the goods are delivered, it invoices for the full amount of the goods,
all applicable taxes on the goods, and applies the deposit previously
received.
Hope this helps.
--
Stephanie Serba, AICIA
Partner, Durham Business Outsource
Accounting & Technology
www.dbo.ca
Stephanie
2004-07-30 14:47:33 UTC
Permalink
You're right. I had a brain fart. I had debated even putting that
extra info, but I wanted to make sure the OP knew the "Deposits" item
should post to the "Customer Deposits" liablity account. I was trying
to do too many things at one time. :)
Post by N Owen
I know that you know better - I have the "momentary lapses" sometimes, too.
But the GL account on the "completion of delivery" invoice for the computer
s/b a SALES/Income acct, not COGS.
N Owen
To reply, please change "ONE" to numeral
Post by S.M. Serba
See previous post re: invoicing for deposits.
Create new bill. Bill for full amount of item. List each separately if your
habit is to do so.
AT THE END OF THE BILL: invoice for the REVERSE amount of the deposit
Original bill
Deposits $5,000.00 NO TAX GL: Customer Deposits
NOTE: NO TAX
Computer: $10,000.00 TAX GL: COGS
Deposits: -$5,000.00 NO TAX GL: Customer Deposits
TAX (assume 8%)
$800.00
Due: $5,800.00
This method records the deposit against the final bill as a liability. Then,
when the goods are delivered, it invoices for the full amount of the goods,
all applicable taxes on the goods, and applies the deposit previously
received.
Hope this helps.
--
Stephanie Serba, AICIA
Partner, Durham Business Outsource
Accounting & Technology
www.dbo.ca
Frank
2004-08-02 20:55:25 UTC
Permalink
Thanks for the help everyone.

I tried the method(s) that were described in this thread. The 2 invoice
system works pretty good, but I have to keep a copy of the first invoice
handy until the final bill is sent. If I don't, I'll have to search through
QB to find the deposit invoice to get the figures I need. This doesn't work
well when a customer has 20 different PCs on order and 20 deposits. Add 100
customers and I have 2000 invoices on my desk!

I also tried using the sales order method (we have Premier version). That
seems to work okay too, however, the only way I could generate an invoice
for 50% of the line items is to adjust the quantity. Is there another way?

Overall, these methods all seem a little funny to me. In a perfect world,
shouldn't I create a sales order and then ask the system to generate a 50%
deposit invoice? Then convert the sales order to an invoice (that
automatically shows the deposit invoice as a line item) to create the final
bill? I can't explain it (because I'm a techie not an accountant), but it
seems so easy in other software (not to bash QB).

TIA.

Frank Hughes
BSN
Post by S.M. Serba
See previous post re: invoicing for deposits.
Create new bill. Bill for full amount of item. List each separately if your
habit is to do so.
AT THE END OF THE BILL: invoice for the REVERSE amount of the deposit
Original bill
Deposits $5,000.00 NO TAX GL: Customer Deposits
NOTE: NO TAX
Computer: $10,000.00 TAX GL: COGS
Deposits: -$5,000.00 NO TAX GL: Customer Deposits
TAX (assume 8%)
$800.00
Due: $5,800.00
This method records the deposit against the final bill as a liability. Then,
when the goods are delivered, it invoices for the full amount of the goods,
all applicable taxes on the goods, and applies the deposit previously
received.
Hope this helps.
--
Stephanie Serba, AICIA
Partner, Durham Business Outsource
Accounting & Technology
www.dbo.ca
Post by Frank
That's how I'm doing it now, but I need to send to a bill (or invoice) for
1. Client orders a computer for $10,000.
2. I need to create a bill to give the client to collect the $5000
deposit.
Post by Frank
3. Customer pays $5000.
4. Computer is delivered.
5. Invoice client for the remaining $5000.
Hopefully that helps, but let me know if I'm still talkin crazy....
Frank Hughes
BSN
Post by Frank
Post by Frank
Can someone please tell me how to create an invoice for a customer
deposit?
Post by Frank
Then what do I do when the deposit arrives? I don't want the
invoice
Post by S.M. Serba
to
Post by Frank
Post by Frank
hit
Post by Frank
the books until the final sale is made when the product is delivered.
TIA.
Frank Hughes
BSN
When I receive a deposit in advance of invoicing, depending upon the
1. Make a deposit, from the customer's name, crediting "refundable
deposits" - a liability account
or
2. Receive a payment resulting in a credit balance to the customer's
"accounts receivable" account.
#1 is probably the correct way to do this, with a journal entry after
the
Post by Frank
Post by Frank
invoice is created moving the funds from "refundable deposits" to
"accounts
Post by Frank
receivable".
#2 is kind of a quick and dirty way to avoid the journal entry step.
I
Post by S.M. Serba
Post by Frank
Post by Frank
would always use #1 if the invoice will not be created until after the
accounting period ends so that the assets and liabilities are honest.
--
Sincerely,
Joanne
If it's right for you, then it's right, . . . . . for you!!!
Play - http://www.jobird.com
Pay for Play - http://www.jobird.com/refund.htm
Looking for Love? - http://www.jobird.com/hearts.htm
Garden Kinder CDs
http://www.jobird.com/cd/gardenkinderhome.html
nospam
2004-07-29 01:54:32 UTC
Permalink
Receive the payment using the receive payments screen. This posts an
unallocated payment. When you create the final invoice then apply this
payment to it. It will show up on the invoice & clear the account.

You will go back to receive payments and apply the unallocated payment
to what ever invoice you want when they are created using the set
credits button.
Post by Frank
Can someone please tell me how to create an invoice for a customer deposit?
Then what do I do when the deposit arrives? I don't want the invoice to hit
the books until the final sale is made when the product is delivered.
TIA.
Frank Hughes
BSN
Mike Block, C.P.A.
2004-07-29 08:15:51 UTC
Permalink
Post by Frank
Can someone please tell me how to create an invoice for a customer deposit?
Then what do I do when the deposit arrives? I don't want the invoice to hit
the books until the final sale is made when the product is delivered.
TIA.
Frank Hughes
BSN
When you will receive the deposit from your customer enter such
through the Receive Payments Window in the Customer Navigator and in
the Deposit To field the name of the bank account should be entered.
Do not select any Invoice for such deposit. Now, when the final sale
is made and the Invoice is created, go to Receive Payment window and
select the Customer. Enter the amount in the amount field and select
the Invoice to be paid. Click on the Set Credit button and then click
Done. Delete the amount, which you previously entered. Now save this
transaction.

Mike Block, C.P.A.
Intuit paid me to make QuickBooks better!
http://www.blocktax.com/
http://www.quickbooks-add-ons.com/
S.M. Serba
2004-07-29 19:56:56 UTC
Permalink
Create a liability account called "Refundable Deposits" or "Customer
Deposits". Create an Item called "Deposit" using the "~ Deposits" account in
the setup. Then create an invoice, using your new "Deposit" item. It should
be a nontaxable amount.
--
Stephanie Serba, AICIA
Partner, Durham Business Outsource
Accounting & Technology
www.dbo.ca
Post by Frank
Can someone please tell me how to create an invoice for a customer deposit?
Then what do I do when the deposit arrives? I don't want the invoice to hit
the books until the final sale is made when the product is delivered.
TIA.
Frank Hughes
BSN
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