Firstly you need to create the appropriate accounts:
- Create a CURRENT LIABILITY account called Customer deposits
- Create a charge item with the INCOME account mapped to this account
You can then either use the basic method using Cash Sales - or use the method including Sales Orders instead (which allows for better tracking).
Create the accounts and charge item as above. Then create a Cash Sale using the charge item for the amount of the deposit. When you have shipped the goods create an Invoice for the goods AND the charge item with the deposit amount in negative.
If you check account entries on the Invoice you will see that the accounts are updated correctly.
Create the accounts and charge item as above. Then follow example below:
You have a Sales Order for some goods for 600.00 for example and you want to take a 60.00 deposit. Once you have entered the line items for your goods you simply add the charge item you have created for customer deposits - entering first a value of 60.00 and then add it a second time entering a value of -60.00 - bringing the total balance back to 600.00. At this point you probably don’t want the deposit line items printed on the Sales Order if you are sending it out so you can simply toggle them off by clicking on the line number (when in edit mode).
Next select the positive deposit line item and click on Actions > Create Cash Sale (you could create an invoice here too but cash sale is quicker and simpler!). Simply enter the payment method and save the cash sale - you will see that it has the SO ref automatically populated in the Our Ref field. If you click on this link it will take you back to the SO and you will see the deposit line item shows a tick indicating it has been paid.
When you wish to send the final invoice you simply select all the other line item(s) to create your invoice - the item that has already had a cash sale created will not be carried over. The total of the invoice will reflect the deposit already paid (total 540.00).
You can then receive the payment on the invoice as normal - the PO will be fulfilled and you will be able to view both the transactions (cash sale and invoice) from the transactions tab on the SO. More importantly the Accounting 'under the hood' will be correct.