would you like to get paid before you start the work well then you will have to record a job
deposit down payment in quickbooks online if you have any questions about this topic you can leave
them in the comment section below and i'll do my best to help you and of course if you feel the
video helped you I hope you will click like and don't forget to subscribe to get updates on new
videos that come out all the time job deposits can also be called down payments it's a payment before
the work is done on a job also called payments in advance it's normal to receive some payment before
starting work in QuickBooks Online here are two possible ways that you could record job deposit
payments in advance of the work done the video that follows this one will show one method for
receiving payments in advance and then the next video after that we'll show the other method for
a different job this way you can experience and see the results of both methods looking at it at
two different jobs there are two ways to record deposit down payments in quickbooks online you
could use the credit memo method or you could use the quickbooks online invoice deposit feature now
if you use the credit method it means that the credit memo that you generate when you get the
advance payment is the receipt that you would give to the client for the down payment it makes the
job and client balance negative until some work is done and an invoice is actually made customers
balances are accurate after each transaction that means that if you use the credit memo method and
you look at any of the reports that show the customers balance at any given moment that
balance will be correct however it does require a simple accountant adjustment if you need to report
your financial statements after you got the down payment but before you did any work on the job
now let's compare that to the other method the QuickBooks Online invoice deposit feature method
well it uses the first or only job invoice as the receipt for the deposit down payment the
customer's records will not show an accurate balance until the work is done on the job if
you use this second method deposit down payment will not be listed as a separate transaction in
the customer records in other words you record the first invoice and part of the invoice is the down
payment deposit it also requires an accountant adjustment if you are reporting your financial
numbers from your chart of accounts after you got the deposit but before the work is done now
let's set up two estimates one for each method that will be demonstrated in the videos that
follow this one let's make estimate number three for the Southwood roads job under Kirschbaum and
we'll make estimate number four and that'll be under the Mockingbird Lane job under Brown
company we will put in the memo field of the estimate the method of the deposit down payment
that we're going to use then we will demonstrate each method in the following two videos estimate
number three will be for the Kirschbaum South Woods Road job will date it February 1 and it
will have 30 units of carpentry at $45 each 30 of electrical work at 40 dollars each 30
mason work at 35 and 30 replacement parts at $30 each but the most important thing we will put in
this estimate for this video will be the credit memo method that will write in the message at
the bottom so we remember how we got paid and what method we're using for this job well it's
very simple just like we learned in a previous video we click new estimate now mine came up
as number 4 because I messed up my number 3 so I'm gonna change this to number 3 but you
don't have to yours should already say number 3 unless you also went ahead and deleted and went
back now this is for the Kerschbaum job but specifically the South Woods Road job under
Kirschbaum and the estimate date is February 1 and let's read off the products and services
30 of each carpentry electrical work Mason work and replacement parts again carpentry 30
electrical 30 and I believe it was Mason work Mason work and replacement
part Mason work you can put this in in any order you like 30 and replacement parts
30 parts not pipes be careful now I like to put the rate last because we would
probably charge a different rate for each item depending on the client 45 40 35 30 so 45 40
thirty five thirty now we have our estimate for a total of four thousand five hundred but the
most important thing to remember in this video is that somewhere in the bottom of this estimate we
should record credit memo given as deposit receipt so that tells us the method that we're using for
this estimate and this job save and close and now let's make estimate number four estimate
number four is for the Mockingbird Lane job under Brown company we will date at february second 35d
winterizing thirty-five replacement parts steam cleaning and electrical work and somewhere at
the bottom of the estimate we will write down a note that we are using the invoice deposit
method in the next video to receive the money for the down payment before we start the work
we click new estimate and quickbooks remembers we're up to estimate number four and this is for
the Mockingbird Lane job under Brown company and the date is February second now let's make sure
we put in the items properly thirty five of each D winterizing replacement parts steam cleaning and
electrical work so d winterizing replacement pipes make sure it's pipes and not parts steam cleaning
and electrical work and how many of each 35 and what's the rate for each of these
remember we charge a different rate for each customer and each job 40 50 40 50 respectively
okay now the total for this estimate is six thousand three hundred and fifty and again
at the bottom we should put a memo the method of recording the down payment was the invoice
deposit method so we know what to expect now we click Save and close and we're finished
preparing for the next video but let's just double check the two reports that show the
estimates do you remember which two they were transaction list by customer and estimates and
progress invoicing summary by customer we click the reports tab go to custom
reports and when we go down to transaction list by customer we can see that under the
you