Apply a Deposit to an Invoice in QuickBooks

How to Apply a Deposit to an Invoice in QuickBooks Desktop

Below, we have provided the easiest way of applying customer deposits to invoices in QuickBooks. 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. Learn how to apply a deposit to an invoice in QuickBooks Desktop.

Some of these tasks require technical expertise that a normal QB user seldom possesses. One such task is applying customer deposits and attaching them to an invoice. There are many different ways of doing this within the program.

How to Apply a Deposit to an Invoice in QuickBooks

Though as already said there are different ways of applying to invoices the most convenient way is through sales receipt and liability accounts. Follow the steps given below to apply a deposit to an invoice in QuickBooks Desktop.

Create Sales Receipt

  • From the Create (+) menu select the Sales Receipt option. This option will be provided under the Customers tab on the top navigation bar.
  • Enter information in all the required fields such as Customer 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 descriptions for transactions and check numbers for check payments.
  • You can either select the bank account you deposited the funds 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 the Create option by hitting the + sign tab and clicking on the Bank Deposit
    • Adding new Deposit to the undeposited funds

Create Customer Deposits

  • Go to the Create option button. It is usually represented by the (+) sign tab. Now Click on the Receive Payments option. You can find this under the 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 Deposits and Sales Receipts 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 the Customers tab.
  • Fill in all the information that is required and hit save. This will secure your credit memo created.
  • Close the tab for the Credit menu
  • Go to Receive Payments under Create Menu
  • Enter necessary fields. Make sure to leave the ‘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 is 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 and how to make a deposit in QuickBooks. Give us a call and talk to our QuickBooks consultant now.