How to deal with advance deposit

[Nusrat]

I have a computer sale and service business. Sometimes customers deposit some amount (or total amount) in advance. I deposit their cheques in the bank, and then delivers their items. It might take more than a month to set up customers computer system or deliver their items.

Now I am not sure what is the best way to deal transaction with advance deposit. Can any one help me please. Thanks

[Joe Williams]

Create a new account "Customer Deposit" of Other Current Liability. Create a nre Item Customer Deposit of Other Charge that used that account. Create a Sales Receipt using that item to show the receipt of the customer's down payment. When you create an invoice for the Sale or serivce, use that item witl a negitice amount. This will track their deposit and the use of the deposit in the liability account. You can create a report to see the customer deposit balance: use the Custom Summary report and modify it. Set Date to all, display Rwo to Customer then on Filters set Account to the Customer Deposit liability. The report will list ALL customers with a balance of non-zero amounts.

[irbrenda]

I do as you describe but really, how are you supposed to remember that a customer gave you a deposit on a job, esp. when you have many different customers that you invoice? I would never think of creating a report to see if a customer gave me a deposit. I would have liked to bill the customer and have the program somehow rremember that a deposit was given for a job.

[suzannemead]

You can just Receive Payment and leave the amount as a credit on the customer's account. The problem with this is it distorts the accounts receivable balance. But it is an alternate way to do the same thing.

[Joey]

If you're using the new 2006 version, they have really improved the Customer and Vendor Centers and they placed the NOTES area right in the center of the screen.
When I have a deposit advance from a client, I enter a NOTE in his file and the amount and it appears right in the middle of the screen when you select that customer's name.
Then you know before you invoice that you have the amount in the liability account.

[irbrenda]

Thank you both! Looks like I will upgrade veerrry soon! I'm still using Contractors Pro 2004 and it has worked very well. I do have 2006 but I've read a few upgrade stories where the program runs slow or crashes. I hope those are isolated cases.

[Nusrat]

Thank you all. Really a great help. Thanks again

Nusrat

[Joey]

They have updated to Release 7 for the 2006 version now and it has corrected most all of the "bugs" that I was aware of. Just be sure when you install the program to also install the program updates and you should be fine.

[irbrenda]

I meant to say "thank you" to everyone, not "both" as I posted above.

Yes, I will definitely install the updates and pray nothing goes wrong. My 04 version has ran flawlessly, as have all my prior versions. ('99, '00, 01, 03 and 04)