You make an Other Charge type item for prepayments. Link it to income, for a Cash basis entity; link it to Liability, if you are allowed to carry liability.

Use this on a Sales Receipt when you get the prepayment.

Use it later on a Credit Memo for the date you are […]

Resolution for 'actual invoice issue: 'How do I record down payments and then later invoice the customer without QB showing a negative accounts receivable balance?' available: Yes.

The actual invoice issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the actual invoice issue yourself by looking for a resolution described in the article. If it is a complex actual invoice issue or you are unable to solve the issue, you may contact us by clicking here or by using other actual invoice support options.

For more information about resolving issues related to actual invoice in Quickbooks/QBO or to get support for the issue 'How do I record down payments and then later invoice the customer without QB showing a negative accounts receivable balance?', click the link below: