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in this guide well to have a look at how to record a customer deposit in xero then well have a look at how to allocate that deposit against the sales invoice that we create in xero and then finally well have a quick look at the theory behind recording customer deposits lets get started lets take a look at how we record a deposit that we receive from a customer for which we havent raised a sales invoice yet because we havent supplied the service yet so in order to record a customer deposit we want to go to the bank reconciliation screen im using a demo account here in xero and well move down and well find the example deposit this item here so we click on add details making sure that the tab is on create here this opens up a new box now the important point here is to make sure that we change this drop down here received as and we go into it and we make sure that we select prepayment the date should be also filled and the customer should be as well although you may want to choo
