I have a service business where I take an upfront deposit before starting services. I followed the 'help' in QB 2005 Pro and it said to create a Sales Receipt for the deposit amount and create an item I called 'Upfront Deposit' and charge it to an Other Liability Account I called 'Customer Deposits'. If that's not right, please let me know.
A client started service, but stopped before the entire deposit was used up. So, I created an invoice for the services rendered ($250) and tried to apply the deposit ($500) which gave me a negative balance. Quickbooks doesn't allow this. So, I created a Credit Memo for $500 and applied it to the invoice, leaving $250. However, when I print it, both of the amounts are negative! Why is that? Did I do something wrong? What do I print that I can send to the customer that will indicate to them that they are receiving a $250 check instead a negative amount?
Thanks for your help.
Tim
P.S. Be gentle with me...I'm not an accountant!