Deposits

Occasionally, a customer will leave a cash deposit on an order and agree to pay the balance when invoiced. Two transactions are needed to accomplish this; the first is a cash receipt to record the deposit, and the second is the invoice that acknowledges the deposit. Both of these transactions are detailed below.

For the cash receipt, enter the amount received on the check record and identify that amount as the “Credit Amount” on the line item. Make sure that the account number in the “Receivable Acct” field is the Deposit account number as defined in the Parameters file (this should default for you), and that the “Apply to Type” is 2 (Deposit). Make sure also that the “Apply To” is the sales order number for the associated order. This order number also has to be entered on the invoice for the system to properly acknowledge the deposit.

Assume a $100.00 deposit was made on a $1000.00 sale. The cash receipt entry looks like this:

Check Amount: $100.00

With the following line item:

Credit Amount: $100.00 Apply To: Sales Order Number Receivable Acct: Deposits

When the cash receipt is posted to General Ledger, the following accounts are updated:

When the invoice is issued, the following items are entered:

Invoice Subtotal: $1000.00 Deposit: $ 100.00 Invoice Total: $ 900.00 Order Number: Sales Order Number entered on Cash Receipt This accompanied by a single line item for $1000.00 of merchandise.

When the invoice is posted, the following accounts are updated: