Recording Job Deposits in QuickBooks

QuickBooks Tips, Techniques & Work Arounds
  A job deposit is money that belongs to the customer, but the customer has given it to you to hold or to use to purchase materials and labor for their job. In other words, it's money in the bank, but you still need to earn it. You should not record it as income when you get it. The deposit is a liability on your books even though you deposit the funds into your checking account. When you have incurred costs on the project in excess of the deposit, an invoice should be created to bill the customer for work performed to date and the amount of the deposit should get applied to the customer's invoice. That means that the deposit will be subtracted from the amount the customer owes…
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