Customer Deposit

Menu: Customer | Customer Deposit...

Introduction

Deposits are the advance payments made or received for future services and goods to be invoiced. With accrual basis accounting, a prepayment for work that a corporation is obligated to perform becomes a liability.
It might be refund or forfeited in partial or full balance of deposit received.

Account Description	DR	CR
Bank Account	500.00
Prepayment from Customers		500.00

At General Ledger, Maintain GL Account must have a deposit account named "PREPAYMENT FROM CUSTOMERS" under Current Liabilities.

1. Click on New button.

2. Select the Customer Code. You direct key-in and search by either customer code or name.

3. You may select other deposit account to be credited in Deposit Acc.

4. You may select the bank / cash account to be deposit (to be debited) in Received In.

5. Enter the deposit amount into Paid Amount.

6. Below is the example of the entry created:

7. Double entry will be:-

GL Account	Description	DR	CR
310-001	Maybank	6,000.00
PREPAYMENT	Prepayment from Customers		6,000.00

Menu: Customer | Customer Payment...

1. Create NEW or EDIT the customer payment.

2. From Deposit will display a total deposit for a customer selected.

3. Click to the arrow key down to select a deposit to offset with customer payment (to knock-off the outstanding invoices).

4. Deposit no (official receipt no) selected and enter paid amount to be off-set. Received in will be auto set.

5. Click SAVE to post. Double entry will be:-

GL Account	Description	DR	CR
PREPAYMENT	Prepayment from Customers	3,000.00
300-A0002	Customer Account		3,000.00

HINTS:
Deposit balance will shown 0.00 in customer payment if no deposit balance to be off-set.

1. To make refund for deposit. Access to Customer | Customer Deposit...

2. Click on ADD button. See the screenshot below.

3. Select Deposit Refund.

4. Enter the Deposit Refund amount and payment method to be pay back to customer.

5. Click Ok to save it.

6. Deposit refund will be added to off-set with deposit unapplied amount.

Double entry will be:-

GL Account	Description	DR	CR
PREPAYMENT	Prepayment from Customers	2,000.00
310-001	Maybank		2,000.00

1. To forfeit the deposit balance (unapplied amount). Access to Customer | Customer Deposit...

2. Click on ADD button. See the screenshot below.

3. Select Deposit Forfeit.

4. Enter the Deposit Forfeit amount and select an account to be credit (eg. gain from deposit forfeit).

5. Click Ok to save it.

6. Deposit forfeit will be added to off-set with deposit unapplied amount.

Double entry will be:-

GL Account	Description	DR	CR
PREPAYMENT	Prepayment from Customers	1,000.00
590-000	Gain from deposit forfeit		1,000.00

NOTE:
Document number for deposit forfeit will be follow to original customer deposit no.