Advance receipt for future invoice

It's a pleasure to have you here, @Sai Krishna Hyderabad. Let me provide some ideas about advance receipts for future invoices.

In QuickBooks Online, we can set up a retainer process for your company. A retainer is treated as a liability. When you invoice the customer and receive payment against it, you'll turn that liability into income.

To proceed, let's create a liability account to track the number of retainers you receive from your customers.

1. Go to Settings ⚙, then choose Chart of Accounts.
2. Click New.
3. From the Account Type ▼ drop-down menu, select Current liabilities.
4. Choose Client Trust Accounts - Liabilities, in the Detail Type ▼ drop-down menu.
5. Input a name for the account.
6. Select a Default Tax Code, enter an Unpaid balance, and an as of date.
7. Lastly, click Save and close.
   
   

Then, create a retainer item:

1. Go to the Settings ⚙ menu, then choose Products and Services.
2. Click New.
3. From the Product/Service information panel, select Service.
4. Indicate the name of the new product or service item.
5. From the Income account ▼ drop-down menu, choose Trust Liability Account.
6. Once done, click Save and close.

Now, retainer items can now be selected when creating an invoice or sales receipt for a retainer payment. Then, you can create a trust liability bank account. For detailed steps, please check out this article: Record a retainer or deposit.

You'll want to view retained earnings account. It displays the profit a company reinvests in itself.

Keep me posted if you have other questions about advanced receipt in QuickBooks. I'll be happy to help you. Stay safe and have a good day!