If Books allowed deductions to be allocated to Current Asset and Current Liability accounts I would know what to do,but it doesn't. So here is my scenario:

We have a 4yrs contract with a customer where we agreed that the customer shall withhold 5% from every invoice and pay it when the contract concludes.

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Invoice Example:

Service charge +$100,000 (Income)

5% Deduction -$500 (Current Asset)

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So we submit an invoice for $100,000 and we get paid $99,500 (the customer holds $500 as security deposit to be paid at the end of the contract)

Can you tell me of a way I can enter this into Books and still be able to track these security deposits