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Evo-ERP and DBA Classic >> Sales >> deposit or payment on account?
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Message started by Laura Oliver on 09/27/21 at 07:32:05

Title: deposit or payment on account?
Post by Laura Oliver on 09/27/21 at 07:32:05

What is the reasoning behind having both "deposit" or "payment on account"? This confuses me everytime and i do not know which one to choose.
When a customer has overpaid I get the message " Is this a deposit? (if not it will be treated as payment on account)

I know that choice I makes causes statements to print differently and AR-R to print differently. Choosing "payment on account" will result in the money paid being reflected in both AR-R and statements. But if i choose "deposit" I am not sure what happens to it.
What are examples of times I am supposed to use "deposit" or "payment on account"

Thank you for any insight! !

from the help file: The dollar amount outstanding for any open deposits for this customer. Deposits are kept in separate GL account (as specified in AD-A General Ledger Defaults) until applied to invoices through AR-C Record Payments or automatically applied when posting invoices if they have been attached to a sales order using AR-N Enter/Print Sales Order Deposits.

from google; The difference is that a payment doesn't hit the GL until the invoice is posted whereas a deposit hits the GL as soon as the deposit is saved.
It follows the accounting principle; the deposit is a current liability that is debited and sales revenue credited. A customer deposit could also be the amount of money deposited in a bank. Since there are no cash earnings, the money is debit to the bank and credit to the customer's deposit account

Title: Re: deposit or payment on account?
Post by AllanMac on 10/18/21 at 15:10:15

For us, the deposit goes to a different GL account, and is used as a deposit on a sales order, as noted above. For payment on account, it refers to a payment that I haven't allocated against specific invoices already raised. I might do this when a customer short pays me, but at the time of posting the payment, I don't know why. Then when I've figured out why, I go and allocate the payment against the invoices.