A deposit received is a payment for goods and services which yet to deliver. It’s liabilities. The balances are cumulative presents in the Balance Sheet. It has to offset against the invoice when goods and services have fulfilled at a later stage.
All the balances in the Balance Sheet have to transfer over when the accounting system changed. And that includes the deposit received from various customers.
Let’s assume that you have decided to move your business accounts to the cloud and adopted QuickBooks Online (QBO) accounting system.
You can use the general journal to transfer the balances from the Balance Sheet to the QuickBooks Online. Set the date of the journal as the crossover date, and then debit the opening balance equity and credit the deposit received account when transferring the deposits over to the new system.
Issue an invoice when goods and services have fulfilled on the following financial year. Then, use a journal to transfer the deposit, which paid by the customer in the previous year, to the receivable account. It reduces the amount owed by the debtor when the journal credits the accounts receivable.
Offset the journal with the outstanding invoice when payment received.
QuickBooks accounting system is easy to use and is suitable for small businesses. Sign up a demo to find out more.
Software: QuickBooks Desktop Accounting Software
You can record bill or issue invoice in foreign currency once you have set up to use the multiple currencies feature in QuickBooks.
A currency has to tag to each name set up in QuickBooks. For example, you tag USD to Customer A if you trade with him in USD and invoices issued will link to the USD Accounts Receivable account automatically.
Multiple Customer A has to be created if you are trading with him in multiple currencies. For example, you create two names in Customer Centre if Customer A buys from you in both USD and MYR. One set as USD and another in MYR. QuickBooks treats them as a separate entity and will both show in the receivable report separately.
Software: Intuit QuickBooks Desktop accounting software
Credit Memo (aka Credit Note or Adjustment Note) is an accounting document given by the seller to the buyer for goods or services returned. A refund of the credit amount can be given or offset against the future purchase.
Use the “Create Credit Memo/Refund” feature in QuickBooks to record the return of goods/services from a customer. QuickBooks gives the user an option to retain as an available credit to offset against the future purchase, give a refund immediately, or apply to an invoice when the credit memo saved. Among the three options, “Retain as an available credit” is most commonly used.
“Retain as an available credit” is use to contra the credit memo against the future purchases. Let’s say you have issued a credit memo and some invoices for a customer. When making payment, the customer can opt to apply the credit memo to the outstanding sales invoices. In the QuickBooks’ Receive Payment transaction, click the “Discount & Credit” button after you have highlighted the sales invoice and apply the credit memo to an invoice accordingly.
Join my QuickBooks training class to explore how QuickBooks can help in your business.
Posted in Accounting, Accounting Software Singapore, QuickBooks, QuickBooks 2016, QuickBooks Asia, QuickBooks Desktop accounting software 2017
Tagged accounting software Hong Kong, accounting software Malaysia, accounting software Myanmar, accounting software singapore, accounting software Taiwan, Credit Note, QuickBooks, QuickBooks Hong Kong, QuickBooks Malaysia, QuickBooks Singapore, Small Business Accounting Software