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Old 01-30-2018, 07:37 PM
ofof ofof is offline
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Upfront deposit from customer

I am a general contractor in Ontario and after quoting a customer on a bathroom renovation I received a 50% upfront deposit from the customer. I then deposited the cheque in the bank by filling in "make bank deposit" and choose the "customer deposit" account from my chart of accounts. This was back in Sept, 2017 and I have reconciled the bank account 4 times since then. I use QB 2012. Was this the correct way to record this or should I have recorded it through "receive payment from customer" drop down?
Now that I am trying to do my year end(Oct 31st) I notice that this money is listed as a liability and I do not think it is attached as a credit for this customer as I purchase items to complete this renovation. I have tried correcting this but fear I could make things much worst. Can anyone please help? Changed the deposit to bank entry to use the "accounts receivable" account instead of "customer deposit" and entering the cheque also in "receive payment from customer" but this deposited the cheque twice.
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Old 01-31-2018, 05:47 AM
Rustler Rustler is offline
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A refundable customer deposit is a company liability.

Posting the deposit to the customer a/r account is one way to show that liability. I do not agree with doing it that way since doing so lowers over all a/r on the balance sheet.

If you have it posted to a/r then the customer has a credit, and when you invoice you can apply it to the invoice in receive payments.

I prefer to do it differently, using the customer deposit liability account
create an other charge item called cust-dep and select the customer deposit liability account on the item screen

use a sales receipt to accept the deposit using the cust-dep other charge item

when you invoice list the items for the sale, a sub-total, and the other charge cust-dep item and enter the amount as a negative
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Old 01-31-2018, 09:33 AM
ofof ofof is offline
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Thanks, after I posted my question last night I started searching the internet for suggestions and found 2 posting that described doing exacting what you are suggesting - one was "Penny Lane's". I did it and everything seems good. Thanks again.
Can I ask you another question - I have some unreconciled credit card entries on a credit card that I stopped using for the company in 2014. At that time I reconciled it it to a zero balance and stopped using it as a company card as I switch the company to a new card. Do you have any suggestions on how I can zero this amount as it shows every year as a liability?
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Old 02-01-2018, 07:03 AM
Rustler Rustler is offline
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You must have either paid off the CC, or transferred the balance, that entry has to be there somewhere. I would search for it and insure that it uses the CC account as the expense for the payment

But if all you want is to get it off the balance sheet, you could pay it from the cash account, or better if the amount is small, enter a credit card credit and use other income as the source of the credit
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