Recording Customer Deposits

Transcription

1 Recording Customer Deposits INTRODUCTION Customer deposits are entered as unapplied cash receipts on the customer s billing account. You will select an allocation type of Customer deposit when you post the cash receipt. Deposits will appear as unapplied payments on the customer account and may create a negative customer balance. Cash receipts entered as Customer deposits are available for allocation when posting the invoice for the work performed. If you want your deposits to be recorded as Liabilities, there is an alternate process that begins on page 5 of this document. SETUP There is no special setup required to process Customer deposit cash receipts. The Billing Account must exist and you must have a register account designated as the default receipt account. PROCESSING There are 2 steps involved in receiving and applying customer deposits: Posting a cash receipt with an allocation type of Customer Deposit. This can be done through the customer s billing account or through a right click option in the Job Form of the Job to which you are taking the deposit. Applying the receipt to the job invoice when the job is billed Posting a Deposit Through the Billing Account 1. Open the BILLING ACCOUNT HISTORY screen for the appropriate billing account. 2. Click on Receipt located at the bottom of the BILLING ACCOUNT HISTORY screen. You can also right-click and select Receipt, or press ALT+1. The CASH RECEIPT form will open. SuccessWare, Inc. 1

2 3. Use the mouse or spacebar to mark the radio button to select Customer Deposit indicating that the payment is a deposit received for work to be performed in the future. 4. Complete the following fields: Field Cash Box Date Amount Comment Payment Method Function Defaults to the register account that is marked as the default receipt account. Enter the date you wish the payment to post to the General Ledger. Enter the actual Deposit amount. Enter Notes that will help you identify what the deposit is for. Use the drop-down list to select the type of payment (i.e. cash, check, Visa, etc.), then complete the other fields as appropriate. 5. The allocation method will default to Unapplied. 6. Press Post to save the payment. 7. The system will post a credit to the default account for Accounts Receivable and a debit to the Cash account for the cash box and the deposit will appear as an open (unallocated) item in the customer s account. SuccessWare, Inc. 2

3 Posting a Deposit Through the Job Form A deposit can also be applied from the Job form if the job for which the deposit is being accepted has already been created. 1. Open the job form for the job to which you are applying the deposit. 2. Right click in the background and select Record Deposit. 3. The receipt form will open with Customer Deposit pre-selected and the job number recorded in the comment field. SuccessWare, Inc. 3

4 4. Enter the Deposit information and then click Post. Applying the receipt to the job invoice Once you have a deposit recorded on a customer s account you can allocate or apply that deposit directly in the Apply Payment form of the Job Invoice. For installation jobs, this can be done before the job is completed and the invoice will then only display the remaining balance due by the customer. To add the deposit to the invoice 1. Complete the detail of invoice as you normally would. 2. Click Apply Pmts at the bottom of the invoice. 3. Select it from the DEPOSIT drop-down at the bottom of the form. NOTE: If there are multiple deposits recorded on the billing account they all will display in the dropdown. This is where adding a detailed comment to the deposit on entry is helpful. 4. Once the payment information in entered, click Save changes. The balance of the invoice will now reflect the application of the deposit. SuccessWare, Inc. 4

5 As well as on the printed copy of the invoice ALTERNATE PROCESSING- RECORDING DEPOSITS AS A LIABILITY The method of entering and applying customer deposits described above will show as an open payment on the customer s account until it is applied to the job s invoice. The only general ledger accounts affected are Cash and Accounts Receivable. That process works well in most situations. However, some companies may collect many customer deposits and wish to include them as a liability on the Balance Sheet. The following processing steps describe an alternate method of entering and applying deposits in a manner that will update the Balance Sheet as the deposits are received and used. This method will require you to manually track the deposits and requires more data entry. Setup There is special setup required to record customer deposits using the Alternate method of processing. You must set up: A General Ledger Account A Sale Type A Pricebook Item SuccessWare, Inc. 5

6 Setting Up the General Ledger Account To set up the general ledger account: 1. Select Setup, then General Ledger from the MAIN MENU. 2. Select tab Account Setup. 3. Locate the Account Class Current Liabilities using the drop down menu. 4. Select New Account. 5. Use the drop-down menu to select the category Other Current Liabilities. 6. Double-click account you wish to use for Customer Deposits, enter the description, and select Save. Adding a Sale Type To add the sale type: 1. Select Setup, then Reference Library, from the MAIN MENU. 2. Select Pricebook from the list of Volumes. 3. Click on Sale Types and select the Open button to open the table. 4. Press Ctrl+Enter or right-click and select Modify mode to open the table for editing. 5. Press Ins to insert a new line. SuccessWare, Inc. 6

7 6. Enter the Code and Description that you wish to use. Be sure to select or enter the Customer Deposit account as the GL_Account. 7. Press Enter to save the line, then Esc to exit modify mode. 8. Press Esc again to return to the REFERENCE LIBRARY. Adding a PriceBook Item To add a customer deposit item to the pricebook: 1. Select Purchasing, then Pricebook from the MAIN MENU. 2. Use the mouse to click in the Miscellaneous section on the left side of the Pricebook. 3. Press Ins, or right-click and select New, then New Misc Item. 4. Use the drop-down menu to select the Category and Group to which you will add the item. 5. Enter the Item number and Description you wish to use. 6. Enter a Standard cost of 0.00 and unmark the Can purchase checkbox. 7. Enter or select the Sale Type that you added for customer deposits. You must also select an Expense Type in order to save the item but the system will not use it since you will not purchase the item. SuccessWare, Inc. 7

8 8. Select Save to finish. Processing When using the alternate method of entering and applying deposits you will invoice the deposit using the new PriceBook item. When the job is complete, you will enter a line item on the job s invoice to use the deposit. Receiving the Deposit To process the receipt of the customer deposit: 1. Add a job into the system to perform the installation or other work. 2. Press F10 to open the invoice for the job. 3. Enter the date you received the deposit and press Ins to add a line item. 4. Enter, or select, the customer deposit pricebook item. 5. Tab to the UnitPrice field and enter the amount of the deposit. 6. Select Save. 7. Select Apply Pmts to record the actual receipt. 8. Enter the Amount and Method, then select Save changes to return to the Invoice. 9. Select Post to post the invoice. The net result of GL posting will be a credit to your Customer Deposits account and a debit to Cash. SuccessWare, Inc. 8

9 Applying the Deposit To apply the customer s deposit to the job s invoice: 1. Once the job is complete, press F10 to open the invoice for the job. The system will display the posted invoice you entered to record the deposit. 2. In the upper left corner of the invoice press the + button to add a new invoice to the job. 3. Enter the invoice date and press Ins to begin data entry. 4. Enter all lines items to record the sales items. 5. When all sales items have been recorded, press Ins again to add another line. 6. Enter the Customer Deposit line item that you created in the PriceBook 7. Tab to the UnitPrice field and enter the amount of the deposit as a negative. 8. Press Enter to save the line item. SuccessWare, Inc. 9

10 9. Select Apply Pmts to record any additional payment received at job completion. 10. Select Post to post the invoice. The net result of GL posting will be a debit to your Customer Deposits account for the amount of the deposit, a credit to Sales for the entire revenue amount, and a debit to Cash or Receivables. SuccessWare, Inc. 10