I work with other photographers and they sometimes recognize revenue on the first $500 in the year they collect the deposit because they consider it non-refundable. % of people told us that this article helped them. How do these get recorded so that the sales tax is recorded correctly and their invoices are accurate? Accepting online deposits saves you time, secures your customers commitment to your projects, and gives you a jump start on cash-flow. This just leaves on open credit within the customers AR record and you then apply that credit the ales invoice once its created. That very simple way of doing it (which I had been doing for over a decade) came to an end when I updated in 2020. Once you have your slip of the deposited balance from your bank, you're ready to record. Thanks for coming back with more detailed information on your concerns. Now I have a 2 line item credits in my online account, and 2 line item credits in my QB register. From the Customer:Job drop-down list, select the customer or job. In the Detail section, select the Upfront Deposit item you created from the Item drop-down list. Q7 How many times are customers able to make a payment via a payment link before it expires? Upfront prepayments are income for a cash basis entity, one that is not allowed to carry liability. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/e\/ee\/Account-for-Customer-Deposits-Step-1-Version-2.jpg\/v4-460px-Account-for-Customer-Deposits-Step-1-Version-2.jpg","bigUrl":"\/images\/thumb\/e\/ee\/Account-for-Customer-Deposits-Step-1-Version-2.jpg\/aid1405256-v4-728px-Account-for-Customer-Deposits-Step-1-Version-2.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"