Vendor Deposits

..9.2

Task/Problem Overview

This document will cover applying deposits against a purchase order. You will be shown how to apply a vendor deposit and how to track the ledger transactions during the process.

Applying Deposits for Standalone Purchase Order

After inputting the parts and vendor data pertinent to the PO, you can go to the Summary Tab of the PO and see the grand total in the Totals section. You can also see the Deposit Button in the Pricing section that is defaulted to “$0.00”.

Once you have converted the PO, you can click on the Deposit Button to apply a deposit against the PO in question. This will bring up the “Pay Deposit” window which will allow you to enter a full or partial deposit and choose information such as the bank account you are taking the funds from and the ledger account you are going to apply the deposit against. This screen is shown below. Double click the “Amount” next to the Vendor deposits drop-down (It will default to 0.00 when you open the window) and enter the deposit you are applying towards the PO. Then click “Save & Close” and the deposit will be applied.

At this point, if you revisit the Summary Tab, you will see that a $10.00 deposit has been applied and the amount due is now $71.27. It is important to note that the Grand Total will still reflect the entire price of the PO.

After you receive and put away all items, you will then be able to enter a bill against the PO. You will notice that while the subtotal is still for the full amount, a credit is automatically applied. Create the bill and when you go to pay the bill, you will notice that the credit is applied

At this point, follow the standard bill payment process to complete the order.

Ledger Transactions

If you go to the History > Ledger Transactions tab of the PO, you’ll be able to track all of the ledger transactions that occur throughout the process of creating the PO, applying a vendor deposit, receiving inventory, creating a bill and paying the bill.

NOTE: In essence, by placing a deposit against a PO, Savance Enterprise considers you to be providing an advance payment to the vendor, which will immediately impact your AP ledger. Simultaneously you are creating a vendor credit for your company because the vendor essentially owes you money until you receive inventory. This is why you see vendor credit ledgers being impacted. The first “bill” that is created in the ledger trail is the bill associated with payment on the deposit because again you are essentially providing advanced payment. All subsequent ledger transactions are consistent with what you would expect to see when purchasing material from a vendor.