Customer Deposits

Customer Deposits represent money received in advance of providing a service or product to a customer. Customer Deposits are classified as a current liability on the balance sheet because the company still owes the service or product to the customer. An example would be taking a deposit on a job before the job is started or a layaway deposit.

You can set the default Customer Deposits account by going to Admin -> Billing -> General Setup.

You can view current deposits in the system by going to Income -> Billing -> Payment Report. You can filter the report to just deposits by marking the box labeled Show Only Order Deposits.

Once an order is converted to an invoice, all deposits on the order will be transitioned to invoice payments.