Using Deposits

We recommend you read this entire article before you use a Deposit.

Setup

Setup Accounting for Deposits /Prepayments

Use an existing account or create a new account:

ACCOUNTING > Chart of Accounts > + 

CURRENT LIABILITY > Account name = Deposits

Setup Deposit/Prepayment Item

Set up a Charge Item with its Income account mapped to the current liability account Deposits

PRODUCTS/SERVICES > Items > + > Charge > Item Code = Prepayment or Deposit – or a name your sales team uses to describe this type of task.

CHARGE ITEM > Accounting Tab > Accounts > Income = Deposits

Show a Deposit on a Sales Order

You’ll need to be careful with this method. Take your time.
  1. Enter the ordered Line Items
  2. Enter two Deposit Charge Items on separate rows
  3. Enter the Deposit amount in the Unit Price column against each Deposit Charge Item.
  4. Sign the second Deposit Item’s Unit Price with a minus (-)
  5. If you are going to send the Sales Order to the Customer, you’ll want to show the deposit on the PDF. Omit the row with the unsigned Unit Price, so as the Sales Order only shows the Deposit Item with the signed amount. Here’s how:

    Hiding Rows when printing a Document

    The display of the rows of a Document when it’s printed or emailed as a PDF can be disabled by clicking the row number.
    1. Edit the Document.
    2. Click on the row number you want to omit from printing. The row number will appear faded.
    3. Click Print to check the result. (Just open and review the PDF)
  6. You can now link the recording of the Deposit on a Cash Sale or a Sales Invoice to this Sales Order, here’s how…

From a Sales Order, invoice the Deposit or take immediate Payment using a Cash Sale

  1. Go to the Sales Order you prepared as above.
  2. Select the row containing the unsigned Deposit Charge Item.
  3. Create an Invoice or a Cash Sales.
  4. If you use a Sales Invoice, save and send it with just the Deposit Item.
  5. If you use a Cash Sale, take and process the payment on the Payment Methods tab. Then send the Cash Sale to the Customer.
  6. In both cases, the Sales Invoice or Cash Sale will be linked to the Sales Order (Our Ref), and the respective Document will appear in the Transactions tab on the Sales Order.

When you review the Sales Order, you’ll notice the row with the Deposit Charge Item has an indicator Invoiced. When you invoice the residual of the Sales Order, because the Deposit has been invoiced/collected the Invoice status will set to Fulfilled.

If you are not using a Sales Order for this transaction

Setup a Memo type Deposit for use as a reminder/memo

This is an optional step.

See Using Memos

When you take the deposit you can create and link a Memo to the Cash Sale or Sales Order to record details about the transaction, and act as a reminder.

Take a Deposit or Prepayment without a Sales Order

See Using Cash Sales, if this is the first time you’ve encountered the Cash Sale Document.

  1. Create a Cash Sale.
  2. Add the Charge Item and set the Unit Price column to the deposit/prepayment amount.
  3. On the Payment Method tab record and process/save the payment details.
  4. Email the Customer a copy of the Cash Sale Document. 
  5. Add a Memo to the Cash Sale (type Deposit) and record details.

Account for the Deposit on the Sales Invoice without a Sales Order

When it’s time to Invoice the customer, you’ll need to account for the deposit. To do this:

  1. Go to the Transactions tab on the respective Customer master and locate the original Cash Sale. If you created the Memo type Deposit, locate the Memo on the Memos tab using the SEARCH OPTIONS > Memo type = Deposit. The Memo will be linked to the original Cash Sale. Bookmark the Memo and the Cash Sale for reference.
  2. Create the Sales Invoice.
  3. Add the Deposit Charge Item as a Line Item, with the Unit Price set to the original Deposit balance. 
  4. Sign this Unit Price with a minus (-) to subtract the deposit from the Invoice.
  5. Save and email the Invoice.

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