Prepayment/Deposit
Last updated
Last updated
Read this entire article before you use a Prepayment/Deposit.
Use an existing account or create a new account:
Accounting>Chart of Accounts>+
Current Liability>Account name = Deposits
Now 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
You’ll need to be careful with this method. Take your time.
Enter the ordered Line Items
Enter two Deposit Charge Items on separate rows
Enter the Deposit amount in the Unit Price column against each Deposit Charge Item.
Sign the second Deposit Item’s Unit Price with a minus (-)
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:
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.
Edit the Document.
Click on the row number you want to omit from printing. The row number will appear faded.
Click Print to check the result. (Just open and review the PDF)
You can now link the recording of the Deposit on a Cash Sale or a Sales Invoice to this Sales Order, here’s how…
Go to the Sales Order you prepared as above.
Select the row containing the unsigned Deposit Charge Item.
Create an Invoice or a Cash Sales
If you use a Sales Invoice, save and send it with just the Deposit Item.
If you use a Cash Sale, take and process the payment on the Payment Methods tab. Then send the Cash Sale to the Customer.
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.
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.
See ‘Using Cash Sales’, if this is the first time you’ve encountered the Cash Sale Document.
Create a Cash Sale
Add the Charge Item and set the Unit Price column to the deposit/prepayment amount.
On the Payment Method tab record and process/save the payment details.
Email the Customer a copy of the Cash Sale Document.
Add a Memo to the Cash Sale (type Deposit) and record details.
When its time to Invoice the customer, you’ll need to account for the deposit. To do this:
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 te Cash Sale for reference.
Create the Sales Invoice
Add the ‘Deposit’ Charge Item as a Line Item, with the Unit Price set to the original Deposit balance.
Sign this Unit Price with a minus (-) to subtract the deposit from the Invoice.
Save and email the Invoice.
