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Paid Deposit - received invoice for remaining product - how to process

Coleen Burgess

The company required a deposit in advance so we cut a check.  We then created a PO for full amount and are now trying to receive product and pay remaining balance.  How do we do this? n Thanks in advance 

 

 

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David Fournier

Good afternoon Coleen Burgess,

Thank you for your query.

Our recommendation is:

  • Set up a rate that is coded directly to the Deposit account that was used to pay the original deposit (similar to how Use Tax, Prepaid, etc. rates are configured)
  • When receiving, add the rate as a negative value

This will:

  • reduce the payable owed to the supplier by the amount of the deposit
  • post the full value of the receiving to the expense account
  • balance/offset the original deposit amount on the balance sheet when the A/P export is posted to the finance system

We have received this query from other customers recently also & will be publishing an article soon-- I will update this post when it is available.

Please let us know if the above helps or if you have any follow-up questions on this topic.

Best

David

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