QuickBooks Online Contractors Credit Balance From Client Down Payments

In this QuickBooks Online contractor instructional lesson, you will learn how to record advanced payments and “job deposits” from clients. Most often contracts require the customer to pay some money “up front” This requires recording a credit memo for the customer and possible printing it as a receipt for the customers advanced job payment. This brings the customer’s balance to a negative amount. This pre-payment will show up on the open invoice report until the first 1 or 2 job invoices are created. Then you will apply the invoice to the prepayments and the customer’s balance will be positive until they pay the open invoices. This method of recording pre-payments or advanced payments is called the “credit balance” method of accepting job deposits. It’s the clearest way even though you will see that there is no perfect way as was discussed in the video prior to this one.
This QuickBooks KZbin Playlist will teach you every possible contractor feature that a contractor could need when using QuickBooks Online. Not all contractors are physical contractors that do renovations or construction. QuickBooks Online has features for those types of contractors as well as “office professional” type of contractors like marketing companies that fill their client’s service contracts over time. This KZbin QuickBooks Online For Contractor’s Playlist will teach every available contractor feature in QuickBooks online. It will give you real-life, hands on practice with actual contractor problems and solutions for anything that could come up when managing any contractor company’s books and records in QuickBooks online. Every “on the job” challenge is addressed by demonstrating all job project features and how they are used in QuickBooks online. Even non-contractors can benefit from the features in QuickBooks Online demonstrated in this playlist.
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[@worldwidequickbooks]

Hello to all my contractor friends using QuickBooks online! I will show you how to record pre-payments. These “down payments” usually come at the beginning of a contracted job before work on the project begins. Subsequent invoices are created when the work on the job is done. Then you can apply the pre-payments to the subsequent invoices and check them in the open invoice report. This “credit balance method” is one of the best ways to keep trach of advanced payments that come in from contractor clients. I thank you all and hope fs that you will click “like” and “subscribe.

[@ScoobyDoo-rm8xl]

Great work. But my invoice was not automatically applied, rather "open invoices" report show $1000 down payment and $1125 invoice separately. Why?

[@worldwidequickbooks]

Thank you. Now, if the payment comes before the invocie, you have to re-open the payment window and apply the payment to the invocie. There is also an option on the invoice, in the ribbon of the invoice, to "apply credits". Check them both out and let me know. -Mark

[@jongray4519]

Hello, love the content. however when i create an invoice and the estimate pops up on the left of the screen, I hit add and it adds the whole invoice. there's no pop up, I doesn't give me the option to select a percentage. What am i doing wrong?

[@worldwidequickbooks]

Thank you Jon. I cannot be sure. First, make sure you have the plus version of QBO. Then make sure you have no browser issues. You may need to contact QBO tech support. -Mark

[@bryanmetillo4342]

Can contractors view their payments?

[@worldwidequickbooks]

Sure of course!! If you click in the top-right corner of the video, you will get a link to the whole playlist. Watch them in proper order and you will have everything you need. To see the payments, or any transaction, use the reports shown in this playlist; it's the best way, you will see. -Mark

[@Gr8mom2tac]

Is there a way to invoice the customer for the deposit amount so that they can use the online payment option? And then how do I reconcile the deposit from the invoice and apply it to another service invoice? Let's say the customer needs to pay $2000 before the job starts. We work on continuous retainers essentially. So the first invoice they get for work might be for $3000 - then I need to apply the $2000 deposit already paid - but I also need to invoice for the next $2000 deposit/retainer (I am not great with the correct vocabulary). I've been using a "work around" but it's got a critical error - once they pay online and I delete the invoice for the deposit (or the line item with deposit) then quickbook payments doesn't acknowledge the money received and won't correctly apply it to a current invoice. Using the above example - Quickbook customer balance will show that $3000 is due. But when my customer clicks their quickbooks payment link, the payment amount filled out automatically will be $5000. The initial deposit of $2000 isn't applied. I've spent HOURS on the phone with QB with zero progress.

[@worldwidequickbooks]

Thank you Chon, I can only answer general and quick questions form here on KZbin. It would not be responsible for me to comment an anyone's specific, unique and/or detailed situation without a formal session. If you would like to set that up, please email to me - [e-mail]

[@familyblevins169]

Did you ever figure this out? We're having the same issue.

[@Alexenes7697]

@@familyblevins169 Me too.

[@leehuiling7222]

In my trial balance, instead of Income from heating repair $2700, it shows retain earnings $2700. The account is different. could you please tell me why, how do I fix it. Thanks.

[@worldwidequickbooks]

Yes it's because you ran the report on a much later date from the transaction It will only show retained earnings instead of income if you're running the report in the next accounting period after the date of the transaction so check your dates and look at your transaction and your report again Mark

[@leehuiling7222]

@@worldwidequickbooks ok, thank you for your explanation.

[@leehuiling7222]

@@worldwidequickbooks yes, after I fixed the dates. It changed from retain earnings to Income from heating repair. Thank you!!!