Managing invoices in QuickBooks is as easy as pie. Still, there are many feature intrinsic tasks that users would want to perform with these invoices. Some of these tasks require technical expertise that a normal QB user seldom possesses. One such task is of applying customer deposits and attaching them to an invoice. There are many different ways of doing this within the program. Below, we have provided the easiest way of applying customer deposit to invoices in QuickBooks.
How to Apply a Deposit to an Invoice in QuickBooks?
Though as already said there are different ways of applying to invoices but the most convenient way is through sales receipt and liability accounts. Follow the steps given below to apply customer deposits to invoices in QB:
Create Sales Receipt
- From the Create (+) menu select Sales Receipt option. This option will be provided under Customers tab on the top navigation bar.
- Enter information in all the required fields such as Customers name, Product/ service, Amount Paid and so on. You can create new customers/products/ services or add pre existing ones.
- Enter the mode of payment. QB also enables you to add description for transactions and check number for check payments.
- You can either select the bank account you deposited the funds to or simply click on the tab named Undeposited funds. Undeposited funds are usually accounts receivables or checks/cash that companies receive/ deposit on later dates.
- Click on Save and your document will now be saved for Later use.
- You can add these Undeposited funds to particular bank accounts by:
- Going to Create option by hitting the + sign tab and click on the Bank Deposit
- Adding new Deposit to the undeposited funds
Create Customer Deposits
- Go to create option button. It is usually represented by (+) sign tab. Now Click on Receive Payments option. This you can find under Customers tab.
- Fill in the necessary fields such as Payment Date, Amount Received
- Click on Save and New
- Match the provided payments or expenses to an Invoice.
Remember to create both Customer Deposit and Sales Receipt for the same item. This will help you in easily issuing a credit memo for them.
Create Credit Memo (Used for applying credits to invoices of a customer.)
- Go to Create (+) and choose the Memo option. Again this you can find under Customers tab.
- Fill in all the information that is required and hit save. This will secure your credit memo created.
- Close the tab for Credit menu
- Go to Receive Payments under Create Menu
- Enter necessary fields. Make sure to leave ‘Deposit To’ section empty as there isn’t any actual deposit being made.
- Now your final step would be to choose an Invoice that you would want to be applied to your memo. When all done then hit save.
Make sure to verify all the information you have entered for the previously created statements. Once you have done this for a particular item and customer, the customer deposit is applied to the invoice.
Not matching customer deposits to correct invoices can be fatal and can attract hefty penalties. Feel free to contact us for more information about applying customer deposits to invoices in QuickBooks. Give us a call and talk to our Quickbooks proadvisor now.