Accounting for Escrow Transactions in QuickBooks

  1. Escrow deposits should be deposited into your Escrow account and should be classified as Escrow Liability . Please make sure not to deposit Escrow funds into your Operating accounts. 

  1. Create Invoice for the Escrow Deposit
  2. For Product/Service filed enter "Escrow" and enter amount of invoice

  1. Click Receive payment to Receive Payment and Enter the deposit