Prepaid Sales in Deposit dropdown

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  • Question
  • Updated 4 weeks ago
With the Accounts Receivable function how can I set up my system to let Prepaid Sales be in the dropdown selections for the "Deposit to" field when paying customers invoices
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Tim Marshall

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Posted 4 weeks ago

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Hi Tim

Only Bank & Current Asset accounts can be deposited to.

 

Normally, you would be receiving these funds (“Deposit to”) into a “Bank” type account, either:

 

  • Your main bank account (if paid directly into there by the customer via EFT)
  • A Clearing bank account (if paid via a 3rd Party Payment App that charges you Fees & deposits the net into your main account eg Square etc) or
  • via Cash

 

Where are your customer’s payments actually being made to?

 

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com


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Tim Marshall

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Hi Shaz,


Thanks for your reply!!

Our Prepaid Sales account is an Accounts Receivables Type so that it why is cannot be selected.

Any thoughts on how I can get around this process??

Currently for a ProForma Invoices:
DR Bank CR Prepaid Sales

When the ProForma gets converted to a Sales Invoice and payment is applied in a different month:
Customer Invoice Received Payment - Deposit to A/R Year End Adj as I cannot select Prepaid Sales

Then I action to DR Prepaid Sales CR A/R Year End Adj which clears these two accounts.

Thanks for your assistance.
Tim

Hi Tim

 

I recommend duplicating your Tax Invoice template as an Estimate or a Sales Order & modifying/calling it a “Pro Forma Invoice” if this is what your customer requires.

These 2 forms are both non-posting so will not affect your financials. Each can be converted to an invoice upon payment/when necessary & can be progress-tracked too (Note “Progress Invoicing” with percentage tracking specifically requires use of an Estimate rather than the SO)

 

Another reason for using these forms is also because pre-payments/deposits are generally not GST-related as the product or service is yet to be provided so the GST is only applicable at the point of sale/invoice.
On a Cash basis - by default - any payments you enter (via “Receive Payments” or “Pay Bills”) will only be included in tax reports (BAS) when allocated to an invoice/bill.

 

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com


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Tim Marshall

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Thanks Shaz for your assistance.
Have a lovely weekend.
Kind regards
Tim