This document defines methods to account for deposits made for purchase orders where some or all of the products have not received.
There are a couple different scenarios which could exist for the settlement of the balance of the deposit as follows:
- If additional purchases are expected to be made from this supplier, the balance of the deposit can be processed as a negative balance on the supplier account which can later be offset against future payments of supplier invoices.
- The supplier is intending to send a check for the balance of the deposit.
Using an example where one of the purchase order line items for $154.50 cannot be delivered, the following examples for each of the scenarios defined above explains the details of each transaction.
- Enter a payable with a negative Invoice Amount for the amount of the refund and Deposit Applied for 154.50.
- This requires two transactions – both will be using the Contra AR/AP general ledger account: