Purchase Deposits

14.13.1 When You Make a Deposit On A Purchase

If the purchase is to be delivered in the future:

Enter the purchase order and note the deposit amount in the comment field.

Enter an 'A' type accounting transaction

Debit Vendor Deposits

Credit Checking for the deposit amount

Enter the PO# in the Related Doc field

When the item is received enter a receiver:

If auto accounting is on (Settings & Utilities, Option 8)

The receiver will automatically debit purchases and credit AP for the full amount.

If auto accounting if off

Enter an 'I' type transactions, debiting purchases and crediting AP for the full amount.

Enter an ‘E’ type transaction; debiting AP and crediting Vendor Deposits (instead of checking) for the amount of the deposit.

When you pay off the remainder of the bill enter another ‘E’ type transaction, debiting AP and crediting Checking.

Endif

NOTE: Your accounting department may have to create the “Vendor Deposit” asset (AC) account.