Customer Deposits

If a customer makes an initial deposit payment as an advanced payment pending the completion of a project and final invoicing, we suggest following the simple process described below.

For charities or Churches reporting on a Receipts and Payments basis what is described below is not really recommended, please use this link Receipts and Payments-Dealing with sales deposits for a more appropriate process.

Creating the Sales Deposit Invoice Transaction

Create a sales invoice as usual; this is accessed via the Sales Menu.

Sales - Add Invoice

Enter information as usual, however entering the line item, select "Deposit" as the Item.

Enter the deposit amount, and if VAT registered the VAT rate and VAT Amount. We recommend that you consult your advisor if you are unsure as to the VAT position.

The SUBMIT button, records the transaction. The confirmation line shows both print and email icons for the required action. The printed Invoice will show a deposit description and amount. The transaction appears, until paid, as an Open Invoice. The deposit appears as a liability in the Sales Deposits Received account and can be viewed.

Accounts - Other Accounts - Liability - Sales Deposits Received

Creating the Final Sales Invoice Transaction

Create a sales invoice as usual and enter the line item or items for the full invoice value.

The final line item needs to be the Deposit received entered with the quantity as a positive 1, and the rate as a Negative figure. The extension gives a negative Net amount and if relevant a negative VAT Amount. The Invoice will now show the balance still to be received for this particular project. Click SUBMIT to complete the transaction and at the same time reverse the sales deposit liability. The confirmation line shows both print and email icons for the required action.

Report

A specific report exists that provides the balance for each customer of deposits taken and still currently held on the Sales Deposits Received account, from the Reports menu

Reports - Customers - Customer Deposits Held

Select an As at date (The default is todays date) and determine the output format. The report may be prepared in hardcopy as a PDF or downloaded in XLS (EXCEL) or CSV format.