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.

You have an option in QuickBooks Desktop accounting software to offset the overpayment received with the outstanding invoices via set credit feature or refund customer the overpaid amount.

You get an error of ‘Receipt amount exceeds amounts allocated to invoices’ when try applying an overpayment to a foreign currency invoice. You have to use dummy invoices to transit the additional amount received between the Overpayment Received and the Accounts Receivable account.

Customise the QuickBooks Agenig report if you want the ageing report show in transaction currency instead of functional currency.

A clearing account is used to offset the accounts receivable and accounts payable account in MoneyWorks.

The Payment History provides an overview and traceability of what and how much has been paid/contra.