Retainer Invoice Example for Financial Services that Streamlines Your Billing Process

Retainer invoice example for Financial Services

hello my name is Leanne raúl and today I'd like to show you in this sample company on QuickBooks Online how to do a customer deposit in advance of shipping the product or or doing the service there's several set steps to doing this so I'll go through them the first thing that you would have to do is to look to see if you have a chart of account items under liabilities called customer deposits so you can either go under transactions here to your chart of accounts or you can you can go here under sorry yes here under the gear icon to chart of accounts okay so there's two ways to get there so I just happen to know that there is not a liability account called customer deposits so we're going to make a new one okay so this will be a other current liabilities because that's all that we have to pick from here so okay we'll just call this other current liabilities and the type will be this actually is a fine earned of revenue I'm just looking at the type that would be best for this hmm it's fine just where we have it just under current liabilities is fine okay and then we would call this customer deposits whoops and the tax code because this is just going to be a deposit is we'll just make it exempt and that's it save and close okay so if I sort this by name we can see our customer deposits there is right there okay and it's exempt so now I'm going to take a customer go and find a customer this is a sample account okay we'll just use admin Cole let's write him down because we'll use them for everything we're gonna do here okay so what I want to do now is I want to do an estimate because when a customer is paying something in advance they would like to know approximately how much it's going to cost because just say you're asking for half of the money up front they just want something that they can pay from so that's the first thing that I would do I would do a estimate so we're gonna do and this is a estimate is always a non posting transaction but you can email that to your customer okay so we're gonna do this for a twin CO and right now it's pending and once they accept it they will accept it and they will it will say accepted and the date and their initials and then then we can not do the invoice for it so we're going to do the product here can be I'm actually going to make an inventory product which name badges are so I don't know let's do like 5,000 of them or something 500 that's so it'll be $3,000 so we can send we can send this to our customer we do not have an email for Adeline but you would send that to your customer okay you might want to put a message on estimated time of delivery blah blah blah whenever you believe that the product will actually be delivered so you would you would click save and send but we can't say send it so I will just click send again this is a non posting transaction and we were able to copy it this to an invoice which is great okay so that has been saved so now what we want to do is we want to make an inventory item so we will go under our gear icon under products and services and we'll go new and what we want to do is we want to make it a service inventory item and we're gonna call it customer deposits well I'm not gonna bother putting it under category right now this is just just to show you how to do this I'm not gonna put a description in here because you will put your own description on it when you when you do the deposits there's not going to be tax on here it will be exempt or zero rated because attempt and we don't need any purchasing information okay so it has to it will be a service item and it self income account is not going to be services we are going to put it under our newly made account which is under miscellaneous life these and called customer deposits just finding it here where the heck did it go I go by this again that miscellaneous it's other current other current liabilities so there's customer deposits so that's where we want to put that so the customer deposit current liability actually you might say it son earned revenue okay and then we would save it and close this okay we're gonna go back over to customers and now we're going to make an invoice for adwin going to its account here okay so we have an estimate for $3,000 just to say that we have sent that to them and it's come back and they've approved that they say they've accepted it so now we're ready to do an invoice to bill for half of that $3,000 that we're going to get upfront so we're going to do a new transaction and this time it's going to be an actual invoice and if you have your payment online set up your Pay Now button that they will be able to pay that way if they wish so because this is a sample account they can't have this set up but right here but you you would have that probably set up so we're going to make this because it's payment in advance we're gonna have it do on receipt just say it was a day after we did the earth two days after we did the other one for the estimate were they finally accepted it and that whoops it's gonna be the 10th - I mean it should have automatically put it in there except I type something there okay there you can see the estimate we don't need that right now we will need it when we finally finish the invoice with the amount of their payment upfront off their customer deposit so the product is going to be our new product that we put in here customer deposits and we'll just put deposit deposit for half or yes half of the total I don't know what to say total of estimate number five you can see on the right that's our estimate that we did so before tax that was three thousand dollars so we just wanted e1 it's just a this is just like a service price is not a inventory it's just service so it doesn't matter it's not keeping track of inventory so quantity one and we'll make it fifteen hundred dollars and it's going to be tax exempt because we're just we just want payment from them okay so now we'll just go in and we can accept that we can I mean sorry we can say that actually we would normally save that and send and email that but we can't because again this is this is a sample account so we'll just pretend that it isn't we'll pretend that the customers got this so we're saving it now okay that's been saved so the last thing that we are going to do here is we're going to do an invoice no sorry that's not the last thing that we're going to do we're going to do it laid credit which okay I'll show you what will happen we need to do a delayed credit card too late just a minute late where's the credit there we go okay delayed credit which is the customer again add one cold and product this is because they have we're saying that they have paid that invoice that we just did for fifteen hundred dollars half of the invoice upfront okay so that we're saying that that's been paid actually hasn't here but we're saying that it has so put it under customer deposits and I'm just gonna say because this is going to go on our invoice at the bottom of our invoice as a credit I'm just going to put less deposit received on I don't know I think we did this for March 10th 2017 hmm and I'm just going to manually put this in so their deposit was $1,500 and it will be exempt you can make a class if you've got classes here too and we will save it and we do not this is a delayed credit so it does not go to the customer so we're just going to say it and close that one okay so now what we want to do is we want to do we want to turn this invoice because we can turn the same voice into we I mean sorry this estimate here for the $3,000 3390 with tax to turn the estimate into an invoice so we're going to start invoice okay and say we ship this this will be net 30 days depending on what your customer is you can make new terms it could be net 60 or net 90 whatever so let's just say we delivered it say 1004 like a month later so now this is when we're building the total amount less the credit that we just did okay so we're going to add the credit in here well just add it there we go so it's taking off that $1,500 and it's charging HST on the total amount of $3,000 which it should do so we're good to go we can save and send that now to the customer and a customer can pay the balance of the invoice I hope I explained that properly it's kind of hard sometimes when you're sitting here by yourself trying to explain something so anyway I hope you found that helpful and have a great day bye now you