I teach all my clients to use the discount column in Receipts for this purpose.  If a customer owes $120.08, then I will put the 0.08 in the discount column and tab into the Amount column.  It will automatically put in the $120.  All done.  You can view the journal entry to see what it will look like before posting and when you print the receipt they will see you gave them a discount.

If you do not have a linked account set up for customer deposits, you will to do this under the Home Screen Setup, Settings, Receivables, Linked Accounts.

If you do not have the Discount columns in Receipts, then in Receipts select View, Customize Journal and add the column(s) back in.  Then select View, Restore window to sort the columns better.

 That is a good idea I never thought of that; however I'm also liking the idea of keeping track of how much money we are giving away in which the 1205 account would be handy.  Would there be a report you could run for total customer discounts throught the year or something to that effect rather than just going through every costomer?

Because you have to link either a revenue or expense account to the discounts field, then yes, you can run the income statement.  If you never post to that account in any other transaction method, then it will be the total of what you are giving in discounts.

 Alright that is great thank you, I have a noobie question also; how can I confirm which account is set up to the discount field? (ie where do I go to find that information and how to change it)