Client deposit and T&M invoicing

SOLVED

I am new to T&M billing so looking for the best practice of attributing invoicing from a T&M job to the initial deposit made by the client.   I have not entered either into sage yet...Is it best to post the initial deposit to a liability account and then pull those funds over to cover the invoices as they are invoiced?   Tell me how you do it. 

Thanks!

  • 0

    I have run into this as well.  I simply create a misc entry on the register and use that to create the invoice.  Funds get posted to account to pay invoice, then in the end I delete the misc entry and end up having to modify the final invoice as an rtf. doc to make it look right for the client.  So I am interested in ways to accomplish this task as well.

  • 0
    verified answer

    It usually depends on how long you have to keep the deposit before using.  Yes the accounting practice is to book it to a liability account

    But you can just create a credit invoice at 3-2 to That debits cash as your deposit. Then after your first T&M billing apply the deposit through cash receipts and include a statement showing the balance due.

    Note:  The T&M invoice is not a statement and therefore not going to show cash applied. 

  • 0 in reply to Char DeLange

    Thank you for this answer!  I was hoping there would be an easy way as we immediately start using the deposit.