Yes, a situation that I think must be fairly common:
A customer requests services or products. Terms of the deal involve a deposit of X before work will begin. But the customer’s procedures require presentation of a sales invoice for authorization and payment of the deposit. Since no economic activity has actually occurred, under accrual-based accounting, no allocation can yet be made to an income account. Allocation on the sales invoice to
Customer credits would create the account receivable, which in turn would be cleared by payment of the deposit. Note that at this point no income has yet been recognized.
Now the work can be begin. Upon delivery of the products or services, another sales invoice can be created, and Manager would automatically apply the customer credit, reducing the balance due, but detailing all work on a single invoice.
To do this now, the first sales invoice must allocate the deposit to a temporary liability account. Then a journal entry must be made to transfer the deposit to the customers subaccount in
Customer credits. The goal here is to properly associate the deposit with a specific customer for application to future sales invoices, not just to lump it into an undifferentiated prepaid income account.