Rustler’s Quickbooks Tips

Create an other current liability account called something like Customer-deposits.

Create a service item in your items list called something like Deposits and in the account point it to the Customer-deposits account you just created.

When you accept the deposit, use the deposit item on an invoice. What happens is that the money received (the deposit) is sent to the other current liability account. It is a liability because you owe the customer something, either a refund or a product.

When the product or job is done, invoice the customer for the full amount, then as the last entry on the invoice enter the deposit item and enter the amount of the deposit as a negative number.

This records the sale, takes the deposit out of the liability account and applies it to the amount owed, and the invoice will show the amount still due to you.

OR

If all that sounds like too much trouble …

Another way to do it is to create the invoice, then use receive payments against that invoice with the deposit amount being received. Then after that use the statement function to bill rather than a new invoice, the statement will show the deposit and subsequent payments made and the balance due. Receive payments against the original invoice.

And as an example of another way - easier in my opinion 

To handle customer retainers (deposits) you need an “Other Current Liability” account, lets call it cust-deposit. Then an “Other Charge” item, which points to the cust-deposit account, lets call it use-cust-deposit.

To record the deposit:

Open the bank register, enter the customers name, enter the amount in the deposit column, and select the “cust-deposit” account.  That puts the money in the bank, and creates a current liability in that amount.

To bill and use the deposit:

Create your sales receipt or invoice billing for what ever.  Last item, enter the other charge item use-cust-deposit, enter a negative 1 (-1) in the quantity, and the amount in the rate.

The invoice will reflect the lower amount due, or zero. The amount of the retainer used will come out of the current liability account cust-deposit.