07/22/2025
Something new in QuickBooks Online.
Hi Cindee,
We’d like to let you know about improvements to the deposits on estimates feature.
What’s happening?
Based on feedback from customers, we’re adding a new option for deposits on estimates. Starting on July 14, 2025, you will be able to choose whether deposits on estimates will be recorded in a liability account or automatically converted into an invoice. This change will enable you to control how deposits are handled to fit your clients’ specific business needs.
If you choose to automatically convert deposits into an invoice
When you receive a deposit on an estimate, it will automatically be converted into an invoice and recognized as income.
If you choose to record deposits in a liability account
The funds your client collects as a deposit will be recorded as a liability until they are ready to recognize the deposit as income and convert the estimate into an invoice for the requested goods or services.
If you or your client have already been using deposits on estimates for some time, you should not experience any change to your current functionality and workflow. However, if you notice a change in the linking of estimates and invoices, please follow the instructions below.
How to choose an option for how deposits on estimates are handled
You can choose how deposits on estimates are handled by taking the following steps. Note that this setting will apply to all future deposits received on estimates.
1. Select the Gear icon to go to Settings and select Sales.
2. Select the Pencil icon in the Deposits on Estimates section to edit your settings.
3. Use the toggle to set whether to auto-convert estimates to an invoice when deposit is paid.
Please note that the rollout of these changes will occur in phases starting from July 14, 2025. You or your client may see these changes implemented at a slightly later time.
If you have any questions please feel free to reach out.
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