How to account for deposits for advance bookings. Sometimes for events in the following tax year


I have a similar problem like this topic…

Can you help me to understand how can I achieve the first step, please?

“1. Find the money coming in on the bank and click to tag. Select the option ‘Payment from a customer’.”

There are more ways?
Should I send an invoice for the deposit payment or not?
If I receive a payment from my client, can I register manually in my quickfile account the payment to follow the first step? I’m confused.

Thank you!


I am not an accountant so it would be best to check with one to be completely sure, but I would raise an invoice for the deposit and then raise a second invoice for the total less the deposit when the event is due to take place. I think it would make it easier to keep track of the money movement this way.

I have found this which also may help:

Hope this helps :slight_smile:

Thank you, QFBeth.
That’s helpful.
But how can I follow the steps if I don’t receive the payments by bank transfer?

If you receive the payment via cash, then you can do a cash deposit to petty cash and then tag this as payment to the invoice?

Would this help? how else might you receive the payments?

cash deposit to petty cash… by Input New Transaction?

Banking/All Bank Accounts/Petty Cash/Input New Transaction

Yes - you want to add a transaction into your petty cash ‘bank’ account. Once the Money in has been recorded you should be able to link this to the invoice you have created :slight_smile:

Now I understand where to start.
Many thanks!

Sometimes I receive full payment as a deposit.
Do I still have to do this, or an invoice and an ordinary payment is enough in this case?

You’re welcome :slight_smile: glad I could help.

You may have to check with an accountant for specifics. It is up to you how you process deposits/invoices - whether you want to create a deposit invoice or just the total invoice if they have paid for the full event. If you are questioning for VAT purposes then I would definitely check with an accountant to make sure that you are processing correctly.

I’m not questioning for VAT purposes, and unfortunately, I can’t afford an accountant right now, so any help is very useful.

I can see in the previous topic that the payment for the deposit is tagged to the client account (Payment on account (Assign later)), not to an invoice.

“I would raise an invoice for the deposit and then raise a second invoice for the total less the deposit”

What is happening with the invoice for the deposit in this case? Remains unpaid?

You wouldn’t use both methods at once, you would either assign to a client account as a prepayment or you would raise an invoice for the deposit.

Personally I tend to use the latter method as it is easier to keep track of what is paid and what is due.

1 Like

Thanks, Lurch.
What paper can I give to my client in case of the first method as proof of deposit payment?

This is the second method?

You can give them whatever you want. This is why I use the other method as the deposit invoice shows up on their statement and they can see exactly where the payment went and what it was for and it also saves me having to manually generate any other paperwork for the job.

No, this is;

Ok, Thank you.

The first method helps us to separate the deposit and the income. The deposit becomes income only when we issue the invoice and we use it as payment.

What is the solution for the second situation? How we can separate the deposit from the income if the second/final invoice will be issued, maybe, the next financial year?

I think that would be something to ask your accountant if you are wanting to hold deposits but not account for them on your books.

Thank you so much for your help by now, Lurch.

I just realized there is a solution from an accountant here…

I just need to add 2102 Other Creditors

I hope I understood right.

Functionally that seems correct but I am not an accountant so I cannot say whether that is the correct way to handle it overall.

I understand, Many thanks!

It seems, Faraday Keynes it is an accountant -

“FaradayKeynes - Accountant
Once you get money in advance, tag them to 2102 Other Creditors and once job done move them to Income account”

Even though he is an accountant I would be hesitant to blindly follow a vague posting on the internet. You can easily find posts from people saying yes and no to any question you ask so take anything you read with a pinch of salt. Each to their own though.

When I try to add “2102 Other Creditors” I receive this… “This code is already in use”

Where can I found “2102 Other Creditors” category, as, on my invoice, I have only the ones from below:


Other Creditors is not a nominal you would process invoices against which is why it is not showing as being one of the options in the drop down.

I think the easiest and most simple way for you to account for your deposits is to create an invoice and tag the payment to this - leaving the ‘other creditors’ alone.