Customer Deposit

From eStream Software
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

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.
  • Generally, the double entry will be:-
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.
Customer Deposit-00.jpg


Customer Deposit - Entry

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:
Customer Deposit-01.jpg


7. Double entry will be:-
GL Account Description DR CR
310-001 Maybank 6,000.00
PREPAYMENT Prepayment from Customers 6,000.00

Customer Payment Off Set with Deposit

Menu: Customer | Customer Payment...

1. Create NEW or EDIT the customer payment.
2. From Deposit will display a total deposit for a customer selected.
Customer Deposit-02.jpg


3. Click to the arrow key down to select a deposit to offset with customer payment (to knock-off the outstanding invoices).
Customer Deposit-03.jpg


4. Deposit no (official receipt no) selected and enter paid amount to be off-set. Received in will be auto set.
Customer Deposit-04.jpg


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. 
Customer Deposit-05.jpg

Customer Deposit Refund

1. To make refund for deposit. Access to Customer | Customer Deposit...
2. Click on ADD button. See the screenshot below.
Customer Deposit-08.jpg


3. Select Deposit Refund.
Customer Deposit-09.jpg


4. Enter the Deposit Refund amount and payment method to be pay back to customer.
Customer Deposit-10.jpg


5. Click Ok to save it.
6. Deposit refund will be added to off-set with deposit unapplied amount.
Customer Deposit-11.jpg


Double entry will be:-
GL Account Description DR CR
PREPAYMENT Prepayment from Customers 2,000.00
310-001 Maybank 2,000.00

Customer Deposit Forfeit

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.
Customer Deposit-17.jpg


4. Enter the Deposit Forfeit amount and select an account to be credit (eg. gain from deposit forfeit).
Customer Deposit-18.jpg


5. Click Ok to save it.
6. Deposit forfeit will be added to off-set with deposit unapplied amount.
Customer Deposit-19.jpg


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.

See also