Managing your customers deposits in QuickBooks


quickbooksProcess Documentation-Managing Customer Deposit as Negative Liability-Sales Cycle

 

  • Sales order-Create your sales order and save it in pdf format.  Create the deposit email below. Then send both together.

 

  • Create a separate invoice for the needed deposit. Do not create the invoice from the sales order.  In the item column, use an item called “Customer Deposit”.

 

  • To create a new gl account, go to lists, gl accounts, right click new, setup as other liability account called Customer Deposit.
  • To create this new item called Customer Deposit, go to lists, list items, right click new, assign it as: other liability account and make it a service item.
  • If you have outlook, you can setup a preference to send your forms through Outlook. Click edit, send forms, email option, check outlook. When you send this deposit invoice, it will open in an outlook email window, you can then attach the sales order to the email and both documents will be attached to the email. You can also setup standard text for all invoice emails so  text in your emails are consistent. .

 

  • At this point, there is a sales order open for the entire order, there is an accounts receivable  balance for the deposit, there is no revenue recorded, just a negative liability for the billed deposit.

 

  • When the customer pays the deposit, apply it against the deposit invoice. Find the original invoice and note deposit is paid in the memo field by noting paid and the date.
    • This DOES NOT clear the liability account but the memo showing it was paid will show on the below report.

custsatisfaction

 

  • You can create a customer report by going to reports, customers and receivables, and choosing A/R detail, then customize, display and add memo field to report, customize filters, choose the “Customer Deposit” account, and customize the title to Customers Deposits. This will give you a report of deposits pending. Memorize the report and put into the customer reports group. Note, this report will age the deposits, so you can track if any customers are not paying the deposit in a timely manner or someone forgot to update the memo field on the deposit invoice.

 

  • When the sales order is ready to ship, from the sales order, go to print, pick list.
    • Pick list can be setup under preferences: edit, then preferences, then sales & customers, on the right assign the default pick list form, then save.
    • Also in the same preference area, you can setup your common carriers and your FOB’s points.

 

  • The packing list is used for packing in the shipping container and the shipper documentation. You can create a custom form from the sales order for the shipping document if you like.

 

  • The invoice is now created using the sales order. Add a line to the invoice, (do not apply any pending credits). The item for this line is “Customer Deposit”. The amount for the deposit paid goes on this line as a negative number.
    • This clears the pending liability account.

This is a good solution for managing your Customers Deposits.

Written by: Susan Faulkner,  Business Logic Solutions


About Susan Faulkner

Expertise in ERP Manufacturing and Quality Software. Provides business software consulting for VISUAL Jobshop, Unipoint Quality Software and QuickBooks. Implementation, training, and process improvements for manufacturing environment.. Includes bar code setup and integration. Crystal report writing and distribution partner with Infosol Re port Scheduler. Many years of experience in IT, accounting, and manufacturing, makes me the perfect fit to see the total picture. Organized data is extremely important to your bottom line. Without the right visibility of your business you are flying blind. Let me show you how to automate your processes and save you money. Specialties: Quickbook ProAdvisor, VISUAL Jobshop, Crystal Reports and distribution/bursting. Specialties in process improvements for manufacturing processes.

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