Description
A customer deposit transaction records the funds received when a customer makes an advance payment for an order.
This payment is recorded in the general ledger as a liability until the goods or services are delivered, and does not affect the customer’s accounts receivable balance.
After the order is filled, the deposit is applied against the invoice.
Usually, we are creating the customer deposits for the customer but we can also create this transaction for a Lead / Prospect.
Here we have created the customer deposit for the Lead and trying to apply it to the invoice.
Here we couldn’ apply it to a transaction due to the absence of Sales order for the particular lead/prospect.
If we need to apply that customer deposit to an Invoice, the Lead must be converted to a Customer and need to create a order with that customer.
We can also create standalone Invoices for the Lead/Prospect. In this case, the corresponding Lead/Prospect will be automatically converted to a Customer after the creation of the Invoice record.