partial payments

We use 2007 Pro, contractor edition. Many of our jobs are paid in thirds. Could you tell me the correct way to handle the money taken in before the job is complete and the final payment is made? Thanks. -Allen Thompson

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wrote:

To start, unfortunately I do not have contractor edition, but I have 2007 qb pro. However, you should have an option to create progress invoicing. IN qb pro i think its 'edit:preferences: jobs and customers' then company preferences. it works ok.
One thing I found with qb anyway is that their editions, like qb PRO and qb ONLINE or in your case perhaps qb contractor they all do the same thing but the specifics are called different things, like in your version customer job may be called something else.
Best of luck.
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Robert is right, you can do progress invoicing. You'll enter the full amount and then tell QB what % you want to invoice/bill. OR--simply invoice the full amount. Then when you 'receive payments' that are partial payments, QB will just keep track on the amount still owed. I hope that helps!
Michelle L. Long, CPA, MBA Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business http://www.SuccessfulQuickBooksConsulting.com (Amazon.com product link shortened)-... Advanced Certified QuickBooks ProAdvisor Member of Intuit's Certified Trainer Network
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Hi Allen,
We use the same edition of QB. The answer to your question is... it depends.
For many of our jobs we use estimates and progress billing. At the time the customer makes the required deposit, we create a progress invoice direct from the estimate. We made a template for this one, called 'Deposit Application' and we memo the bottom to show that this invoice was to 'Apply deposit for proposal # xxx'. Most often, the customers do not see this invoice, but some require some sort of 'receipt' for deposits.
Once the progress invoice has been created for the amount of the deposit, go to the 'receive payments' window and apply the payment to the invoice.
When it comes time for the next payment, go back to the estimate, and create a 2nd progress invoice. Again, we've made a separate invoice template for this, showing the percent billed and the remaining amounts.
The advantage to using progress billing, is that an open balance report will show a 'balance' of the unbilled amount on the estimate. This helps in making sure we've billed the final third.
Now -- for the 'depends'. If you haven't issued an estimate, and are perhaps doing a job on T&M billing, or if you don't use progress estimates, then you could simply receive the payment against the customer account. This would leave a credit to the customer that you would apply, using the 'receive payments' window, to any invoice you create later. You can memo the payment 'Deposit toward T&M work'. We've found that it is important to create a 'job' under the customer and to apply payments to that job. That way, you will be able to separate out deposits, etc., in statements to the customer. When you apply the payments to the customer account, instead of the customer:job, the payments will show on reports under 'other'.
Oh, to be able to use progress billing, you need to set the company preferences under jobs & estimates to read that you create estimates and do progress invoicing.
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