To account for invoice deposits
- Select Accounting > Chart of Accounts then Add an account under income called "Deposit Holding Account".
- Go to the Transactions screen and find the invoice deposit/pre-payment.
If you have connected a bank account or uploaded statements, your transaction should already be on the on the Transactions page. Otherwise, you will need to add the transaction manually.
- Categorize the transaction into your Deposit Holding Account. You can also add the customer under Details.
- When you actually send the invoice your customer, go back to the transaction created in previous steps and change the category to Invoice payment (matching it to the correct invoice).
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