Hi Ptonjalken,

It's good to hear back from you. I'm glad you found the advice helpful.

Here's the clarification for Creating a Liability account and Product for Deposits you requested:

1) You set up a deposit account under Current Liabilities called Deposits, creating the Deposit Liability account is the first step.

2) If you haven't created the product item Deposit, this would be the next step.

3) Then you'd create and send the customer an invoice with just the Deposit item, no HST, and have it linked to the account above as you've mentioned.

4) Yes, you'll set up a Delayed Credit or Credit Memo of the same amount for that customer. 

5) You're correct, when service occurs you send them the true invoice, dated properly, and apply the delayed credit to the invoice and have them pay the remainder.

>When you create this invoice it lists the products/services you've provided. On the last line you'll include your Product Item-Deposit in the product/service field. You'll enter the Deposit amount as a negative to subtract it from the invoice. The deposit amount can't be greater than the invoice total. An invoice can have a zero total, but not a negative one.

>This decreases the liability account and applies the credit to your customer's invoice. It'll then recognize the income.

If you'd like more detail check out the articles I've shared above. They also explain the difference between delayed credit and credit memos and how to track the deposit amounts by customer. You should have all the information you need to accept deposits from your customers.

Thanks for reaching out with your questions. I'm here to help. I hope you're having a fabulous day!