Financial Exchange: Customer Order Deposits

Overview | Customer Order Overview

Pro

Although customer orders created in Point of Sale are not sent to QuickBooks, deposits and deposits used as payment create either sales receipts or invoices in QuickBooks, depending on the payment type.

Deposits Taken

In general, deposits taken on customer orders are recorded on sales receipts in Point of Sale and sent to QuickBooks in the same manner as other sales receipts. The deposit amount increases the Customer Deposit liability account.

If you send summarized data to QuickBooks:

Customer order deposits taken by cash, credit card, or gift card/certificate appear on the consolidated sales receipt for the day, and the amount of the deposit is added to the consolidated total for the appropriate payment type(s)and to the POS SO Deposit item, which increases the Customer Deposits liability account.

Note that while these deposit receipts show a link in Point of Sale to the general journal transaction created for the day in QuickBooks, they in fact do not affect the Cost of Goods Sold or Income Asset accounts since the items on a customer order are not actually sold when a deposit is taken.

A customer order deposit paid by check or charge on account is always sent to QuickBooks as an individual sales receipt or invoice, respectively. No general journal entry is created for these transactions.

If you send detailed information to QuickBooks:

Deposits are sent as their own sales receipt (cash, check, card, gift certificate) or invoice (charge to account). Since the items on the order have not yet been sold, the individual items listed on a customer order do not appear on the documents created in QuickBooks and no general journal entry is made.

Deposits Applied to Sales

When customer order deposits are applied to the final sales receipt in Point of Sale (to actually sell the items), the new sales receipt is sent in the same manner as other sales receipts and a general journal entry is made to reflect the effect on Cost of Goods Sold and Inventory Asset Accounts. The Customer Deposits (liability) account is decreased by the amount of the deposit used as payment on the sale.

If you send summarized data to QuickBooks, deposits used that were originally paid by cash, credit/debit/gift card or gift certificate appear on the consolidated receipt for the day. Customer Order deposits used on receipts paid by check or charge to account will appear on the corresponding receipt or invoice created in your financial software.

If you send detailed information to QuickBooks, deposits used appear on the corresponding sales receipt (cash, check, card, gift certificate) or invoice (charge to account) created in your financial software.

You can use these links for more information and illustrations:

- You can view the specific document created In QuickBooks for a deposit receipt via a link in your Point of Sale sales history list.

- Read various ways to customize Financial Exchange

Overview: How QuickBooks handles Point of Sale data