Enter a Customer Deposit or Prepayment

From the Tasks menu, select Receive Money.
Enter or select the customer ID. To display a list of existing customers, type ? in this field, or select the Lookup button. This is required for a prepayment.
Select the Apply to Revenues tab, and select the Prepayment check box.

If you enter a prepaid income or customer deposit liability account instead of the default A/R account, your detailed Accounts Receivable aging report will not agree with your general ledger accounts receivable balance. The aging report uses the accounts receivable information and does not include the deposit's liability account.
Enter a check/reference number for this transaction. This must be a unique number and is generally the customer's check number.
Save the prepayment.

When you later invoice the customer for a final sale, the invoice and prepayment appear in the Receive Money window for this customer, along with the other posted invoices. You can select the prepayment along with the other invoices. The prepaid amount will be subtracted from the receipt amount for this customer.

Note: Once you apply a prepayment to an invoice, you will not be able to drill down to the prepayment from reports that display the transaction.