What should my transactions and accounts affected look like to record and recognize revenues at the appropriate times?
Answer Hi Barb Some setup is required Set up a new chart of accounts List > Account > right click -new > name =customer deposits, type=other current liability Set up 2 new items on your item list list > Item > right click- New > type= Other charge Name- Customer deposit required – point to account “customer deposits” Name – Customer deposit applied – Point to account “customer deposits” In the description type a note to yourself – Customer Deposits applied (enter as a negative) Also – set up a subtotal item in your item list if you do not have one already right click -New > type = Subtotal, name Subtotal When you invoice a customer deposit, use the item Customer Deposit Required on the invoice. When you ship the goods, create an invoice for the full Qty Shipped, add the subtotal line then add the item Customer deposit applied and enter the amount of the deposit as a negative. Hope this helps, Linda Saltz, CPA Advanced Certified QuickBooks Advisor Certified QuickBooks Enterprise www.qba
