Software: Intuit #QuickBooks #accounting software
The “Balance Due” in the Sales Invoice is referring to an outstanding amount of a sales invoice after knocking off the payment received. It is useful for project-based business to show the balance due of a sales invoice when an advance payment has collected.
You can use the Make Deposit or a General Journal in QuickBooks to record an advance payment received from the customer. The journal of the transaction debits the Bank account and credit the Refundable Deposit Received account (an Other Current Liability account type).
If you are a Singapore GST register trader, you may have to issue a Sales Receipt to record an advance payment received with GST from the customer. If the deposit is a part payment, GST applied. If you are not sure in GST management, it is better to consult your accountant first before you record the entry.
When the Sales Invoice issued, it will debit the Accounts Receivable and credit the Sales account. Then, you pass a journal or use an Adjustment Note to reverse the refundable deposit received, which you have recorded earlier. You credit the Accounts Receivable and debit the Refundable Deposit Received account. This General Journal will contra off the refundable deposit that you have received and reduce the outstanding amount of the customer. Next, knock off the General Journal with the Sales Invoice, this process is to tag the payment to the invoice. The outstanding amount of the invoice will be captured in the Balance Due field, which you have inserted in the invoice form.
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