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  #1  
Old 02-28-2017, 12:40 PM
Frankie413 Frankie413 is offline
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Location: Girard, Pennsylvania
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Recording Downpayments

We are a fence construction company. A down payment is required when a customer accepts our proposal to do a job. What is the correct way to record the down payment in QB?


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Frankie
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  #2  
Old 03-01-2017, 04:59 AM
Rustler Rustler is offline
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If the deposit is NON refundable it is income when received

If the deposit is refudable
create a short term liability account called customer deposits
create a service item called cust dep and select the customer deposits liabilityu account as the income account on the item screen

When you receive the deposit use a sales receipt and the cust dep item

When you invoice, list the items the customer is being charge for, follow those with the cust dep item, qty is negative one, enter the deposit amount
The customer pays the balance owed.
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Old 03-02-2017, 09:14 AM
Frankie413 Frankie413 is offline
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Yes, the down payment in non refundable. I guess I should phrase my question more precisely!

When I receive a down payment on a job, I create an invoice for the entire amount, from the estimate. I then apply the down payment to that invoice, which leaves the balance due when we complete the job.

The invoice is dated for the date which the deposit was received. When the job is completed, I send the invoice for the balance, but I change the date to the current date. It suddenly dawned on me the other day, this is not the correct way to do this because it skews my company totals on reports! (I posted earlier about totals on my sales tax payable report not being accurate, and I'm pretty sure this is the main reason causing that problem!)

How should I handle this? How do I record the down payment and subsequent final invoice for the customer?

Thanks,

Frankie
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  #4  
Old 03-03-2017, 04:08 AM
Rustler Rustler is offline
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An invoice is a sale, if you complete an estimate in a couple of days it is probably not a problem doing it the way you are doing it. But it is bad form anyway

My first reply explained how to do a deposit in QB
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  #5  
Old 03-03-2017, 07:01 AM
Joe Williams Joe Williams is offline
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If you run the report in Cash basis then it will report on Paid invoice amounts
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